Mobile Home Park Loans

Mobile Home Park The mobile home park loan market has changes over time. Prior to 1990 many of the mobile home park loans were seller financed but most sales were all cash. But, if parks were large and of high quality there were loans comparable to large office and apartment buildings from. Only in the late 1990's to did smaller banks lend on parks. But, often those loans were at a higher rate or stricter terms than other types of commercial real estate loans. As of 2009 the market has shifted once again as credit market tighten. Ironically the maturing park loan segment is probably the safest loans that were done from 2000 to 2009 but the overall turmoil in the lending world has seen a reduction in park lending. This is from the banks simply going out of business, being forced to stop lending by the Fed or new underwriting restrictions that make loans in general hard to place. Unlike other types of commercial loans park loans are rarely re-traded or pooled. This is another reason they have remained stable but because loans can not be pooled they must be portfolioed. This makes it hard for the bank to resell if the bank runs into liquidity issues. It’s a catch 22, banks can make more interest on a much safer loan but is less liquid for the banks use.