How common is seller financing on mobile home parks?

Very common on off-market mom-and-pop sales — retiring operators often carry 20%–40% of price at 5%–8% to defer taxes and broaden buyer pool.

Can you combine seller financing with a bank or bridge loan?

Yes — typical structure is bank or bridge first lien at 60%–70% LTV, seller second at 10%–20%, buyer equity 10%–20%.

What balloon term do seller notes typically use on MHP?

Five to seven year balloons are common — aligned with buyer bridge refi or agency takeout timeline after stabilization.

Does seller financing replace bridge on mobile home parks?

Often partial — seller carry reduces equity need but first lien bridge or bank still funds majority of purchase on turnaround parks.

Blog

Seller Financing a Mobile Home Park — Structure and Exit

Published July 16, 2026

By Jason Taken · Principal, Jaken Finance Group

Seller financing mobile home park acquisitions — note terms, balloon structures, and combining seller carry with bridge for off-market MHC deals.

Seller financing on mobile home parks is the off-market standard — retiring operators prefer a carry note over a single-year cap-gains event. Combined with bridge first liens, seller notes reduce equity requirements on sub-$3M parks agencies will not finance day one.

Hub: manufactured home community financing

Why sellers carry notes

Seller motivation	Buyer benefit
Tax deferral — installment sale	Lower cash at close
Broader buyer pool	Win off-market without full cash
Legacy preference	Operator continuity messaging
Price premium	Pay slightly more for terms

Typical seller note terms

Term	Range
Rate	5%–8%
Buyer down payment	10%–20%
Amortization	20–30 years
Balloon	5–7 years
Seller portion	20%–40% of price

Seller note must subordinate to bridge first lien — negotiate standstill (no acceleration during bridge) and balloon after projected refi date.

Combined capital stack example

$1.2M park acquisition — 38 pads, 76% occupancy

Piece	Amount	%
Bridge first lien	$780,000	65%
Seller second	$240,000	20%
Buyer equity	$180,000	15%

Bridge at 8.99%–13.5% IO for 18 months → refi pays off bridge → seller note remains as below-market carry or paid from refi proceeds if LTV allows.

Playbook: bridge-to-agency MHP

Due diligence on seller paper

Existing debt search — hidden bank lien triggers due-on-sale
Seller note subordination agreement — signed at close
Balloon vs refi timeline — model POH conversion delay
Seller estate — note assignability if seller dies
Title insurance — endorsements on subordinate position

When seller financing alone works

Stabilized 85%+ occupancy — bank first at 65% LTV + seller 25% + equity 10%
Retiring operator with no mortgage — clean seller carry entire price (rare)
Family transaction — related party terms

Turnaround parks still need bridge speed on first lien — seller cannot wait 90 days for bank.

Exit paths with seller note

Exit	Seller note treatment
Agency/bank refi	Pay off bridge; retire or retain seller sub
Sale to third party	Seller note paid from proceeds or assumed
Pad fill stabilization	Refi at higher NOI — full stack refinance

Risks

Hidden seller mortgage — due-on-sale acceleration
Balloon before stabilization — forced sale
Seller note sale — third party buys note at discount
Subordination refusal — kills bridge stack
Over-leverage — total debt exceeds refi LTV

Documenting seller carry at close

Closing attorney should record:

First lien bridge or bank deed of trust
Subordinated seller deed of trust with standstill
Intercreditor agreement — seller cannot accelerate during bridge
Balloon date after projected refi month
UCC search on park — no hidden seller mortgage

Missing subordination kills combined stack — negotiate before LOI, not at table.

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Seller carry reduces equity at close but requires clean subordination — document the stack before bridge funding.