Ways to Finance homes for empty spaces in your mobile home community

[Logan M.]

I more than doubled the size of one of my communities and I wanted to share a few resources that I have found buying new homes for those spaces.

We have bought homes through TruHomes and Clayton Homes. Clayton homes are more expensive but significantly better quality. Clayton Homes is also connected to 21st Mortgage which has a program called the cash program.

The Cash Program allows an owner to finance new homes to fill the empty spaces and they can be rented out. The program in my experience is advertised well and sounds amazing, the problem is they wanted us to first to three consumer loans outside their cash program to be eligible. That sounds easy except they cap your sale price to a 10% margin. Long story short 21st Mortgage was a major waste of time and until they make changes the program will not work for the majority of park owners.

The next program we found is from Legacy Homes. THe terms they quoted us were 10% down, and 7.9% interest for 10 years. They build the homes and finance them. They only require $2,000 per home to place your order then the remaining 10% before delivery.

Today, I placed an order for 12 homes and will stagger their delivery over the next ten months.

[Logan M.]

Quote from @Patrick O'Shea:

Thanks for posting. What did you mean here: "the problem is they wanted us to first to three consumer loans outside their cash program to be eligible". I am not following. Could you rephrase it?

I've also heard of asking dealers to place used homes on your lots. Is that an option for you since you sound like a dealer yourself? Thanks!

 21st Mortgage has two main programs, one is the cash program to fill empty spaces and the other is for the buyer who wants to buy a home. They want me to do a handful of the buyer loans at a reduced sale price before financing the home purchases, chicken and the egg scenario.