Financing of Mobile Home with Land Property

[Aaron Kinney]

Hello,

I have been a long time reader but this is my first post. Anyway, just wanted to ask if anybody is finding financing for mobile home with land properties.

I have called 30 to 40 of the national and local banks in my area but nobody seems to have an appetite for making loans on these properties to investors. 21st mortgage told me that they would make the loans but after filling out the application, I was denied.

We (my dad and I) have financed our first 12 properties using various personal lines of credit but can see that the end is near at least until some time passes. I have begun to seek alternative financing (private money) but just wondering what you are seeing in your market.

[Ken Rishel]

Ryan wrote: I personally wouldn't buy a mobile home as an investment property. Mobile homes tend to depreciate instead of appreciating.

Nothing is ever absolute. I built a park in the mid 70s where the homes are selling for about 10 times what we sold them for new. Like all real estate, location is paramount. In the case of HUD Code homes, the community they are located in makes all the difference.

In the case of the original poster, Aaron, he is looking for a private land setup, often referred to as a "land-home" transaction. Now we are really back to location to determine if it will appreciate.

Rod Are you looking for financing for buyers of the homes in your park, or financing for someone who wants to buy your park? They are two separate types of lenders. George Allen, the national consultant to community owners has both types of lists available so you might want to contact him for either list.

Aaron If 21st Mortgage turned you down, none of the other lenders I know would be willing to help you. They have access to Title I and Title II and that is as deep as anyone will go when buying loans, other than the captive finance companies that generally will not finance homes sited outside manufactured housing land lease communities owned by a related company. Sorry.