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.
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: 9.5%–13.5% IO typical.
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
Related guides
- Private lending for manufactured homes (single unit)
- Commercial real estate financing
- Self-storage facility financing
Submit commercial scenario · Commercial financing · (833) 264-7776
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.