In the commercial mortgage industry, it can difficult to find a lender who will provide a mortgage to a borrower looking to purchase or refinance a mobile home park. However, APEX Mortgage Corp. does provide mobile home park financing. If you’re a commercial broker working with borrowers who need financing for mobile home parks, here’s what you and your borrowers need to be prepared to discuss.
- The property: Understanding the facts about the mobile home park being pledged as collateral is very important to securing your borrower a commercial mortgage. How big is the property? Where is it located? How many units does your borrower own or wish to purchase? What is the occupancy rate? These are all important pieces of information your lender will want to consider.
- Your borrower’s credit: A borrower’s credit report is crucial for a commercial mortgage lender when deciding whether or not to finance a loan request. Make sure that your lender has a recent report when evaluating the loan scenario. You and your borrower should both be prepared to discuss any financial hiccups that appear on the report.
- Capacity to pay: All commercial mortgage lenders are going to want to make sure that a borrower can make their loan payments. Provide your lender with relevant financial information, such as a profit and loss report or an income and expense report. A completed 1003 or a detailed personal financial statement will also give your lender a good idea about the borrower’s ability to pay. A lender will also need to know the lot rents so that this can be figured in to your borrower’s ability to pay. Again, make sure you know the mobile home park’s occupancy rate.
- Use of proceeds: A commercial mortgage lender will want to know how your borrower plans to use the mortgage. Whether it’s purchasing a mobile home park, or refinancing a mortgage to improve an already existing business, the more information you and your borrower provide the small commercial mortgage lender, the easier it will be to obtain a commercial mortgage for the mobile home park.
When working to obtain mobile home park financing for a borrower it’s important to provide your lender with the necessary information. You and your borrower should be prepared to discuss the property, your borrower’s credit, the capacity to repay and the use of proceeds with the lender. If you are both able to have conversations with a lender about these details, your borrower has a better chance of getting the mobile home park financing he or she needs.