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Mobile Home Park Financing

TMG arranged the $1.56M loan for the purchase of a low occupancy Mobile Home Park

Tags: Mobile Home Park Financing, MHP loans, Bridge loans
Thursday, Jan 23, 2020
by Angela K

Summary:  The Madison Group (TMG), a leading national lending source of Mobile Home Park financing nationwide, arranged the $1.564,000 loan for the purchase of a low occupancy park in Michigan.   The borrowers were looking for maximum financing on the purchase transaction. 

The property had a high number of vacant pads in the park, exceeding 50%.  The borrowers were able to purchase the property at a good price from a seller that lacked the finances to add additional homes.  TMG was able to secure a long-term loan with a 20 year term, 20 year amortization, at 75% of the purchase price.  TMG worked with a lender to become comfortable with the buying group and their ability to fill up the park.  The loan was structured with one year of interest only payments to help with the cash flow during lease. 

Location:  Michigan

Property:  203 pad mobile home park

Loan Amount: $ 1,564,000

Interest Rate:  5.62% Interest Only for the first 12 months

Term:  20  Years

Amortization:  20 Years

Prepayment:   3/2/1% declining

LTV:  75 %

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