Investors searching mobile home park financing, manufactured home community loan, and MHC acquisition financing are underwriting a commercial income asset — not a single dwelling. A manufactured home community (MHC) generates revenue from lot rent (and optionally park-owned home rent), with infrastructure, density, and occupancy driving valuation.
Nationwide program: Jaken Finance Group finances mobile home park bridge and acquisition files in all 50 states — Sunbelt, Midwest, rural, and coastal. Regional pages linked below illustrate local economics; they do not cap where we lend.
This page covers park-level acquisition and value-add financing — distinct from private lending for manufactured homes, which addresses single-unit dwelling loans. Compare: commercial real estate financing · self-storage financing · RV park financing
Park-owned vs. tenant-owned home structures
| Structure | Who owns the home | Who owns the land/pad | Lender preference |
|---|---|---|---|
| Tenant-owned (TOH) | Resident | Park (lot lease) | Preferred — park is land + infrastructure only |
| Park-owned (POH) | Park | Park | Accepted — higher management intensity |
| Hybrid | Mix of TOH and POH | Park | Underwrite each income stream separately |
Tenant-owned communities are the institutional standard: the park collects lot rent, residents maintain their homes, and the park’s capital obligation is infrastructure (roads, utilities, septic/water, clubhouse). Park-owned communities generate higher gross rent but carry maintenance, turnover, and habitability liability on every unit.
For single-unit manufactured home financing (one dwelling, not the park), see fund your dream: private lending for manufactured homes.
MHC vs. residential investor loans
| Factor | SFR / multifamily | Manufactured home community |
|---|---|---|
| Asset class | Residential | Commercial / land-lease |
| Income | Unit rent | Lot rent (+ POH rent if applicable) |
| Tenant | Leaseholder | Lot lessee (owns or rents home) |
| Infrastructure | Building systems | Pads, utilities, roads, septic/water |
| GSE fit | DSCR possible | No — commercial underwriting |
| Value-add | Rehab units | Fill vacant pads, raise lot rent, upgrade infrastructure |
Financing options compared
| Program | Best for | Typical timeline | Leverage |
|---|---|---|---|
| Bridge / hard money | Acquisition, fill vacant pads, infrastructure upgrade | 14–30 days | 65%–75% LTV + CapEx holdback |
| Bank commercial | Stabilized 90%+ occupancy | 45–90 days | 65%–75% LTV |
| CMBS | Larger stabilized parks ($3M+) | 60–120 days | 65%–70% LTV |
| Seller financing | Smaller parks, mom-and-pop sellers | Varies | Negotiated |
Bridge rates: 8.99%–13.5% IO typical.
The agency floor — why sub-$3M parks need bridge first
Roughly 44,000 manufactured housing communities exist nationwide, but only a fraction qualify for Fannie Mae or Freddie Mac MHC programs. Agency requirements typically include:
| Requirement | Agency standard | Bridge lender view |
|---|---|---|
| Pad count | 50+ lots | 10+ pads on qualified files |
| Loan size | $3M–$5M minimum | $500K–$3M sweet spot |
| Utilities | City water and sewer | Well/septic may qualify bridge |
| POH ratio | under 5% (Freddie) to 25% (Fannie) | Higher POH = higher opex model |
| Occupancy | 80%+ at close | 60%–75% OK on turnaround |
Investor implication: mom-and-pop parks at $800K–$2.5M — the core of off-market MHC deal flow — rarely close on agency debt day one. The standard playbook is bridge acquisition → fill pads / raise lot rent → refi to agency or bank at stabilized NOI.
State guides (regional examples — nationwide lending): Illinois · Indiana · North Carolina · Georgia · Florida
Bridge-to-agency MHP playbook
flowchart LR
A[Acquire below-stabilized park] --> B[Bridge 65-75pct LTV]
B --> C[Infrastructure and fill pads]
C --> D[90pct plus occupancy TOH-heavy]
D --> E[Agency or bank refi]| Phase | Action | Financing |
|---|---|---|
| Year 0 | Buy 45-pad park at 72% occupancy, well/septic | Bridge 70% LTV |
| Months 1–12 | Road repair, fill 8 vacant pads, POH-to-TOH conversion | CapEx holdback draws |
| Month 12–18 | Raise lot rent $40/pad, hit 88% occupancy | — |
| Refi | Appraised on stabilized NOI | Freddie MHC or community bank |
Case pattern: $1.1M acquisition → $180K CapEx → $1.65M stabilized value → $1.15M permanent loan at 70% LTV pays off bridge and returns ~$200K equity.
POH, well/septic, and lender disqualifiers
| Park characteristic | Agency impact | Bridge availability |
|---|---|---|
| Heavy park-owned homes (POH) | Often disqualified | Underwrite POH rent separately; plan conversion |
| Well + septic | Usually disqualified | Common on bridge — engineer report required |
| Private road | Case-by-case | Road maintenance reserve in pro forma |
| Sub-80% occupancy | Wait until stabilized | Primary bridge use case |
| Rent control municipality | Lower upside at refi | Verify before acquisition |
For single-unit manufactured flip financing (not the park), see mobile home fix and flip loans.
DSCR treatment of lot-rent income
Lenders model lot rent as the primary income stream:
| Input | How lenders model it |
|---|---|
| Gross lot rent | Monthly lot rent × occupied pads |
| POH rent (if applicable) | Home rent modeled separately with higher opex |
| Vacancy | 5%–10% stabilized; 15%–25% on fill-up |
| Operating expenses | Water/sewer, trash, road maintenance, management (8%–10%), insurance, tax |
| NOI | Gross minus opex |
| DSCR | NOI ÷ annual PITIA |
Worked example — 60-pad TOH community:
| Line | Amount |
|---|---|
| Purchase price | $1,200,000 |
| Occupied pads | 54 of 60 (90%) |
| Average lot rent | $425/mo |
| Gross monthly lot rent | $22,950 |
| Vacancy (10%) | ($2,295) |
| Opex (30% of EGI) | ($6,196) |
| Monthly NOI | ~$14,459 |
| DSCR at 70% LTV, 7.5% | ~1.28 |
Value-add strategies and financing
| Strategy | Capital need | Financing |
|---|---|---|
| Fill vacant pads | Marketing + minor infrastructure | Bridge with working-capital reserve |
| Lot rent increase to market | Minimal CapEx — NOI lift at refi | Bridge acquisition, refi at higher NOI |
| Infrastructure upgrade (septic, water, roads) | $150K–$500K | Bridge with construction holdbacks |
| POH-to-TOH conversion | Home sell-off or removal | Bridge; simplify income stream for refi |
| Pad expansion (add 10–20 pads) | Land prep + utility extension | Bridge + see vacant land loans |
Case pattern: acquire a 45-pad TOH park at $900K (78% occupied), invest $120K in road repair and utility upgrades, fill to 92% occupancy over 12 months while raising lot rent $35/pad, then refi at $1.3M appraised on stabilized NOI.
What lenders review on MHC files
- Pad count and expansion capacity (zoning)
- Occupancy % and tenant tenure
- Lot rent vs. market — upside or at ceiling?
- Utility structure — public water/sewer vs. well/septic (lender diligence)
- Park-owned vs. tenant-owned mix
- Infrastructure condition — roads, electrical, drainage
- P&L trailing 12 months
- Sponsor experience — MHC or commercial operating history
Risks
- Septic/water capacity — limits pad expansion; engineering required
- Rent control — rare but emerging in some states
- Home removal cost — vacated POH units may require abandonment or removal
- Flood and environmental — low-lying parks near rivers
- Tenant quality — lot lease enforcement and community standards
Agency-floor playbook — when to bridge vs. when to wait
Parks below 50 pads or $3M loan size rarely qualify for Freddie Mac MHC on day one. The institutional path is bridge → stabilize → refi:
| Park profile | Day-one product | Exit target |
|---|---|---|
| 30–49 pads, 75% occupancy | Bridge 8.99%–13.5% IO | Community bank or regional CRE |
| 50+ pads, city utilities, 85%+ occ | Bridge or bank | Agency MHC at 6.5%–8% |
| Turnaround (POH-heavy, 55% occ) | Bridge + holdback | Refi after POH conversion |
Model lot-rent DSCR separately from POH rent — lenders haircut POH income 10%–20% for turnover risk. Compare mobile home park refinance and DSCR for manufactured homes.
Related guides
- Mobile home park refinance & cash-out
- MHP loan rates & requirements (2026)
- Mobile home fix and flip loans
- Private lending for manufactured homes (single unit)
- Multifamily bridge loans 5+
- Commercial property loans by asset class
- Commercial real estate financing
- Self-storage facility financing
- Mobile home park loans Michigan
Investor deep dives (blog)
- Mobile home park loans under $3M
- POH vs TOH underwriting
- Bridge-to-agency MHP playbook
- Seller financing mobile home parks
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Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Jaken Finance Group underwrites select investor bridge and commercial files.