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Mobile Home Park Financing

TMG facilitated a $3MM cashout refinance for a MHP portfolio in South Carolina

Tags: MHC Financing, MHP Loans, Cashout Loans for Mobile Home Parks over $1MM, Nonrecourse Loans
Thursday, Jul 09, 2020
by Jeff Meierhofer

The Madison Group (TMG), a leading national lending source of MHP/MHC financing, arranged the $3,069,000 refinance for a portfolio of four MHP/MHC communities. The final terms were a 10-year fixed term with 6 years of interest only. The loan is amortized for 30-years, is nonrecourse,  with a rate of 3.12%. The borrowing entity received $1.7MM in cash out.

The borrower’s goals were met by consolidating the 4 parks together and getting equity for other real estate investments. They had taken under performing assets and put time and effort into the parks to increase the value. As the assets had appreciated, the timing was excellent to get cash out and receive terms that greatly benefited the borrowers.

TMG worked diligently with underwriting to get through the issues of scattered sites and income and expenses from four different parks. Great care was taken to get maximum proceeds by working through the income and adding back nonrecurring expenses for the varied parks.

“Having borrowers that take pride of ownership and can provide the necessary documents made this possible. Our processing staff worked with all parties involved. It took extra time, but the borrowers were pleased with the outcome.” Jeff Meierhofer, TMG Director of Finance

Location:  South Carolina

Property:  Four Separate Manufactured Home Communities

Loan Amount: $3,069,000

Interest Rate:  3.12%

Term:   10 Years. Years 1-6 are interest only

Amortization:   30 Years

Recourse:  None

Prepayment:   Yield Maintenance

LTV:   55%

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