The Madison Group (TMG), a leading national lending source of mobile home park financing nationwide, arranged a cash out refinance loan of $1,875,000 on a 55-pad community in Florida. The borrower approached TMG looking for a cash out refinance on his existing 100% occupied MHP. His primary goal was to refinance his current debt and eliminate his yield maintenance pre-payment penalty with his current lender, which the current rate market allowed him to do.
TMG worked with a credit union that could finance the MHP and provide a loan without a prepayment penalty. The credit union also locked the sponsor’s rate for 60 days, which was crucial given rates increased by about 0.50% from time of lock to close. The sponsor, lender, and TMG worked collectively to ensure the loan closed within the 60 day rate lock period. In the end, the sponsor was able to obtain a cash out refinance with a loan that has no prepayment penalty allowing him ultimate flexibility when rates lower.
Property: MHP
Location: Florida
LTV: 67.7%
Loan Amount: $1,875,000
Interest Rate: 6.375%
Term: 10 Years
Amortization: 30 Year
Prepayment: None
Guarantee: Recourse