Mortgages for financing mobile homes.

[Dan Sager]

I’m looking to possibly invest in mobile homes since it’s a smaller down payment and I could purchase several of them. My question is, what kind of financing would allow me to purchase several mobile homes over the next few years? Anyone with experience in this? 

[Cyndie Rogers]

You may be surprised that the down payment may not be smaller because it's a mobile home.  It depends on the age and location of the unit as to what sort of financing if any you can find.  I have a property that I bought with four mobile home units 5 and a half years ago.  The rents were below what I knew they should be and I saw potential in some basic cosmetic things.  It has been a lot of work bringing it up to my standards (which for me is if I wouldn't stay in it then it needs upgrading) but well worth the effort. I used seller financing for this project with a 3 year balloon which required a hard money lender at that time.  If you are still reading at this point...this is where it gets good.  The net income is so good that the cap rate makes other investments seem like...well why would you even bother.  So in conclusion, if you are looking at new units they will be easy to finance.  If you are looking at older units you will need seller financing or a very large down payment and a hard money lender.