Indiana MHC cast-iron laterals and Marion exurban refi
Pre-1960 park-owned homes often need $3K–$8K/unit cast-iron lateral replacement before habitability-based lot-rent lift — underwrite in year-one capex, not trailing NOI alone. Marion exurban parks with municipal water stubbed to vacant pads refi faster at 82%+ occupancy than Fort Wayne rural well clusters.
For 2026, Indiana’s individual adjusted gross income tax rate is 2.95%, per Departmental Notice #1. Use that rate on pass-through income in the hold model.
Indiana MHC inventory concentrates in Marion County exurban rings, Fort Wayne corridors, and rural well/septic communities. Model 2026 pass-through income at the 2.95% individual rate. Cast-iron lateral replacement on pre-1960 park-owned homes is a common value-add line item — underwrite habitability capex before IO, not just lot-rent lift. Hub: manufactured home community financing.
Qualified Indiana bridge files: 8.99%–13.5% IO at 65%–75% LTV; community bank refi accelerates when municipal water is stubbed to vacant pads and occupancy exceeds 82%. Rates: MHP loan rates 2026 · Compare hard money lenders Indiana for mixed portfolios.
Indiana MHC segments and basis bands
| Segment | Geography | Basis band | Occupancy | Refi exit |
|---|---|---|---|---|
| Indianapolis exurban | Johnson, Hancock, Shelby | $780K–$1.5M | 75%–88% | IN community bank |
| Northern IN manufacturing | Elkhart, Kosciusko, St. Joseph | $650K–$1.2M | 70%–85% | Regional bank |
| Fort Wayne corridor | Allen, Whitley, DeKalb | $720K–$1.35M | 72%–86% | Community bank |
| POH legacy (statewide) | Rural 15–35 pad | $480K–$980K | Variable | POH-to-TOH first |
| NW Indiana (Lake, Porter) | Chicago spillover | $850K–$1.4M | 78%–90% | Thinner margin |
Indiana does not impose statewide rent control on MHC — lot-rent upside remains a primary value-add lever.
Worked example — Johnson County Indianapolis exurban 49-pad TOH
$895,000 acquisition — 68% occupancy, lagoon septic, 19% POH, Johnson County south of Indianapolis
| Phase | Detail |
|---|---|
| Bridge acquisition | 68% LTV ($608,600) at 11.125% IO |
| CapEx holdback | $118K — lagoon engineering, road repair, POH sales (5 homes), pad marketing |
| Months 1–13 | POH reduced to 8%; occupancy 68% → 83% |
| Lot rent lift | +$48/pad ($358 → $406 avg) |
| Stabilized NOI | ~$9,680/mo after opex |
| Refi | Indiana community bank $715K at 7.25% in month 15. Interest-only at that rate is about $4,320 a month, so $9,680 of NOI covers it about 2.24 times. Amortization is not stated. |
Seller carry on off-market deals: seller financing MHP · Playbook: bridge-to-agency MHP
Indiana diligence checklist
- Septic/lagoon engineering report — pad expansion capacity before marketing vacant pads
- POH count and conversion plan — POH vs TOH
- Flood review — Wabash and Ohio River corridors
- Pad count zoning — county health department caps on lagoon systems
- Seller financing subordination — common off-market at 5%–7%
- Bridge term — size for 14–18 month fill-up on sub-70% occupancy files
Indianapolis exurban vs northwest corridor
Johnson, Hancock, and Shelby counties east and south of Indianapolis show 40–65 pad communities on septic or lagoon systems — bridge holdbacks must fund engineer-signed expansion capacity before marketing pad adds. Northwest Indiana (Lake, Porter) parks sit closer to Chicago demand but face Illinois-competitive lot rents — verify tenant employers before assuming fill-up speed. Off-market seller notes at 5%–7% are common; structure subordination to bridge in the purchase agreement.
Why Indiana vs. Illinois for MHC
Indiana parks often trade 10%–15% lower basis than collar Illinois with similar pad counts — but well/septic frequency matches downstate IL. Indianapolis exurban fill-up stories mirror MHP Illinois playbook; agency refi still requires utility and occupancy gates.
| Factor | Indiana | Collar Illinois |
|---|---|---|
| Basis per pad | $14K–$22K exurban | $25K–$35K collar |
| Property tax | ~1.0%–1.4% effective | Higher reassessment |
| Refi lenders | IN community banks | IL community banks |
| POH legacy | Common statewide | Common downstate |
Exit and refinance path
Indiana MHC sponsors on the I-65 / I-70 corridor target sub-$2M basis with community bank refi once 80%+ occupancy holds.
Community bank refi (Johnson/Hancock): The worked example reaches a $715K permanent loan at 7.25% in month 15, against a $608,600 bridge. Interest-only coverage on that permanent rate is about 2.24 times. IN banks want lagoon/septic engineer sign-off and a trailing 3-month rent roll that matches the T-12.
Agency path (50+ pads, municipal): Fannie/Freddie MHC at 6.75%–7.5% when T-12 supports 1.25x+ — see bridge-to-agency playbook.
Fort Wayne corridor: Allen County parks at $720K–$1.1M on 38–52 pads — manufacturing employment supports +$40–$50/pad rent lifts. Size bridge 16 months when starting below 72% occupancy.
POH-heavy parks: Model $150–$250/home/mo habitability reserve when 30%+ POH — conversion before refi per POH vs TOH.
NW Indiana caution: Lake County parks compete with Chicago-area lot rents — fill-up may run 16–20 months vs 12–14 months in Johnson County despite similar basis.
Related Indiana financing
- Hard money lenders Indiana
- Hard money lenders Indianapolis
- Fix and flip loans Indiana — adjacent product
- DSCR loans Indiana — if pivoting to rental SFR
Manufactured housing context: Manufactured Housing Institute
Send Marion or Fort Wayne pad roll, lateral/POH capex scope, and refi target — Indiana MHC scenario · Midwest MHC programs · (833) 264-7776
Regional example only — Jaken Finance Group lends on MHC nationwide.
Indiana MHC underwriting focus (2026)
- Habitability: Cast-iron lateral and POH skirting on pre-1960 stock in year-one capex
- Occupancy: Marion exurban trailing 12-month pad count; separate Fort Wayne from Indy comps
- Utilities: Well/septic capacity before expansion pads; municipal accelerates refi
- Exit: Community bank refi at 1.25x DSCR on trailing NOI — use the 2.95% individual rate in the hold model
Upload POH lateral scope and Marion/Fort Wayne T-12 — Indiana pad-count file · Indiana commercial programs · (833) 264-7776.
Indiana MHC pad-count diligence
Indiana MHC refi favors Marion exurban municipal utilities — cast-iron lateral replacement on POH homes is often the difference between 78% and 85% effective occupancy for bank DSCR. Fort Wayne and I-69 corridor parks comp separately from the Indianapolis area. Put the 2.95% individual rate in the refi cash-flow model.
Upload POH lateral scope and Marion/Fort Wayne T-12 — Indiana pad-count file · Indiana commercial programs · (833) 264-7776.
Indiana prices, hiring, and permits
House prices and hiring frame lot-rent demand. They are not a pad-rent comp set.
The all-transactions house price index for Indiana was 538.71 in the second quarter of 2026. It was 515.13 a year earlier, a rise of 4.6%. The index is not seasonally adjusted. The first quarter of 1980 equals 100.
Unemployment tells a separate story from prices. The not seasonally adjusted rate was 3.6% in August 2026 and 3.8% in August 2025, on INURN. The seasonally adjusted rate on INUR was 3.3% in August 2026 and 3.7% a year earlier. Quote the pair you mean. Do not turn the gap into a percent change of the rate.
Builders authorized 2,150 new private housing units in August 2026. August 2025 was 2,129. Both counts are not seasonally adjusted. Source: Indiana building permits. New houses compete with pad housing only at the margin. A permit count is not a park occupancy forecast.
Median listing prices are asking prices. They are not closed sales, and they are not park values.
| County | September 2026 | September 2025 |
|---|---|---|
| Marion | $249,945 | $265,000 |
| Allen (Fort Wayne) | $309,675 | $308,750 |
| Johnson | $358,126 | $335,000 |
Sources: Marion County, Allen County, and Johnson County. Each series is in dollars and is not seasonally adjusted.
Johnson County listings rose. Marion County listings fell. Keep those markets in separate memos. A Greenwood park does not inherit a Fort Wayne rent roll.
Pipe and road costs moved too. The construction materials price index was 375.908 in August 2026. It was 341.458 in August 2025, about 10.1% higher. The index is not seasonally adjusted, and 1982 equals 100. Put that move in the lateral and road holdback. Do not fund habitability work out of trailing lot rent alone.
Court foreclosure on an Indiana park mortgage
Indiana mortgage foreclosure is a court case. Indiana Code 32-30-10-3 says the mortgagee may proceed in circuit court, superior court, or probate court in a county where the land sits. The case forecloses the equity of redemption. If the land is in more than one county, a court in any of those counties has jurisdiction.
Section 32-30-10-5 says the court, in a foreclosure judgment, enters a personal judgment against a party liable on the debt. The court also orders the mortgaged property sold. Payment of the debt, interest, and costs before the sale satisfies the judgment. The section does not state a notice-day count. Do not add one.
A different chapter covers some consumer mortgages. Indiana Code 32-30-10.5-5 defines “mortgage” there as a loan, or a consumer credit sale, used mainly for personal, family, or household purposes. It must be a first lien on a dwelling. A business-purpose park loan is outside that definition. Do not paste a household notice period onto the park file.
This is a reading of the published code, not advice for a specific default. FindLaw’s copy is marked current as of January 1, 2026. Confirm the section with counsel before you rely on it in a workout.
Property-tax caps, separate from the income tax
The 2.95% figure above is the individual income tax. It is not the property-tax cap.
DLGF Tax Bill 101 states three caps on gross assessed value. Homesteads are capped at 1%. Other residential property and agricultural land are capped at 2%. Other real and personal property are capped at 3%. The caps limit the bill. They do not set the local tax rate.
Do not put a park in the 2% bucket until the assessor’s class is on the bill. Other residential property is not the same class as commercial land. Park land often sits in “other real property,” which that page caps at 3%. Model the class you can document.
County income tax is a third layer. Departmental Notice #1 lists county withholding rates, and those rates change by county. Pull the county line for the park’s location. Do not use a Marion County resident rate on an Allen County park.
Illustration: interest on a Johnson County bridge
This illustration is not a closed loan. It is not a quote from Jaken Finance Group.
Purchase price: $800,000 for a 40-pad park. A 75% bridge is $600,000. At 11% interest-only, inside the 8.99%–13.5% bridge range, monthly interest is $5,500. That is $600,000 times 0.11, divided by 12. Twelve months of carry is $66,000. Eighteen months is $99,000. A qualified bridge term runs 12–24 months.
A qualified purchase can reach 90% of the purchase price. Here, 90% is $720,000. At the same 11% interest-only rate, monthly interest is $6,600. Many Indiana park files still close between 65% and 75% when occupancy, septic capacity, or park-owned homes are weak. The ceiling and the typical file are different numbers.
Say 32 pads are filled at $400. Gross rent is $12,800 a month. If operating costs are $5,120, net operating income is $7,680. That income covers the $5,500 interest about 1.40 times. Divide $7,680 by $5,500. The ratio is interest coverage on this bridge. It is not a DSCR rental loan.
A DSCR rental loan is a different product. Rates run 5.75%–10.5%. Closing takes about 14 business days. Caps are up to 85% on a purchase, 80% on cash-out, and 85% on a rate-and-term refinance. Use that product for rental houses. Do not relabel a park bridge as a DSCR loan because the park collects rent.
A complete park bridge file can close in 7–10 business days. Laterals and a lagoon letter still belong in the holdback. Speed does not replace the engineer.
Set the Johnson County rent roll next to the bridge loan guide and the MHP loan calculator. Jaken Finance Group can walk the leverage choices at (833) 264-7776.
Indiana park / niche segment gates — Indianapolis (2026)
- MHP underwriting on Indianapolis — pad count, utility infrastructure, and ~0.84% tax on operating entity.
- Cast iron sewer laterals in pre-1960 Marion County stock — segment comps do not cross into vanilla SFR Fort Wayne pricing.
- Bridge 8.99%–13.5% IO with documented operating history or value-add scope before agency take-out.
Indianapolis MHP bridge 8.99%–13.5% IO · Indiana hard money · (833) 264-7776.