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We have a development project just now wrapping up. Pulled a development loan out with a bank for buying the Manufactured Home, building the road in, septic installation, Water, Power, etc.
We’ve been looking for “take-out” financing since the construction loan is coming due and can’t seem to find anything descent ! One broker who had mailed us a flyer, and “Specializes” in Manufactured Home Financing, could only come up with one lender who requires 50% LTV to lend !
Does anyone out there know of financing for MFH’s & land that’s more in line with conventional stick built financing ? 50% is crazy !!!
BB
Billy-Jo-
I can see that you are frustrated with the situation. There’s really not enough info to determine the viability of your project getting some good financing. I’m kind of surprised that the construction lender got into the deal without the takeout loan in place. As I am reading it, I am seeing that you have a park that is nearing completion but does not have any financial performance for a permanent lender to hang it’s hat on. So maybe they are treating it almost like vacant land.
If you’d like some help with trying to sort this out, please feel free to e-mail me at [email protected] with your contact info.
Rene Perrin
Sorry for taking so long to get back to this forum…
This is not a MFH park; it is a 1/4-acre lot with one MFH on it. Real life value when finished should be around $210,000 (Land and Home). Actually, nothing has sold that low for some time. If it were priced at $199,000, it would fly out the door.
I’m only into this for $135,000. It can be either a rental property (which I’m finding is not on the lenders top of the list loans) or we can sell it to an end buyer (owner occupied).
So far, all lenders have wanted 50% equity. That is the cause of the frustration.
B
Sounds like you got a great deal!
Why not just sell it wirh owner financign. Have a highest bidder sale for the down payment to see who will give you the most down. Then just hang on to that one.
It will probably come back to you a few times – but that’s a good thing because you can collect more down payment money each time.
Jackie
Jackie,
We are totally open to doing that, but…
We now have a “Construction Loan” in place that needs to be paid off. That loan paid for the land, the MFH, and all the improvements (Septic, Power, Water, Right of Way road, etc.)
That Construction loan has already been extended twice and the bank is looking for us to pay them off ASAP ! So, we’ve been looking around for a standard 30-year fixed rate loan to take its place… there lies the problem !
We can’t find a lender to make that type of loan on a non-owner occupied MFH. For some reason, the stigma of the MFH is making this much more of a challenge since it’s not “US” that will be living there. Having this be for “Resale” or a “Rental” isn’t setting well with the banks.
We are trying to see if we can’t get this through by saying it’s a “Second Home”, since it is in another County…
That’s why I thought I’d get some names of lenders that would do this deal so we CAN either sell it out-right or have a highest down payment auction, etc.
B
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