Mobile Home Park Commercial Loans

Mobile Home Parks- Mobile Home Parks are properties that generate income based upon what is commonly referred to as “pad income”. A short-term tenant parks their mobile home on a small piece of land, otherwise known as a “pad” and pays a weekly

or monthly fee to do so. Because this is the primary source of income for mobile home park properties, most lenders will not give any value consideration to any actual mobile homes that the property owner may hold title to. Part of the reason for this is that it complicates the commercial financing options by infusing residential aspects to the loan. Lenders do not like mixing the two types of financing together due to the dramatic difference in lending regulations on each of these types of properties. Like hospitality properties, the operating history of the property will be the primary consideration for determining what financing options are available.