Mobile Home Parks:

Take-out loans to purchase and/or refinance any type of mobile home park properties.

Smith-Craine will broker mobile home park loans nationwide. Most lenders seek parks with a stable current occupancy. Rent concessions will be underwritten cautiously and typically require market norm coverage and reserves.

Loan Size:

$1Million and up

Debt Service Coverage:

1.15x minimum

Loan-to-Value Ratio:

Up to 80% for Fannie Mae DUS, Conduit and Life Company Programs, Up to 90% on FHA insured loan program.

Loan Term:

Permanent Financing Terms: 5, 7, 10, 15, 20, 30, and 35 years.

Amortization:

25 to 40 years or less depending on age, quality of park amentities and market location.

Tenancy:

Leases should be at least 6 months at initial occupancy of a tenant.

NOI Calculation:

Most lenders will require two full years of operating history and a trailing 12-month history with adjustments where appropriate. Other income, such as laundry, on trailing twelve months basis. Generally, lenders will underwrite expenses based on last full fiscal year, plus a +/- 3% inflation factor.  Smith-Craine can assist in these calculations.

Vacancy Factor - Actual ot the greater of 5%, local market average or the actual property for the most recent 12-month period (including all forms of economic rent loss, also known as "loss-tolease")

Management Fee - The greater of 5% effective gross income, the actual management contract fee rate, or the industry average.

Capital Reserves - Generally ranging from $150 to $250 per unit, based on the final engineering report, physical inspection, tenancy and age of property.

Time Frames:

Letter of Interest within one week, Commitments within 10 days of submitting full documentation, closing typically 60 days of commitment.

Fees:

1.5-2% of the loan amount
third party legal, environmental, appraisal and other lender fees will be separate.