Michigan MHC title, water liens, and freeze-season occupancy
Wayne County water shutoff liens and Detroit quiet-title complexity block bank takeout until cured — budget $8K–$25K and 45–90 days on distressed acquisitions. Northern Michigan parks need shoulder-season occupancy in trailing 12-month pad count; summer-only pro forma fails refi.
POH HVAC and roof capex before winter — freeze-thaw damage on unheated POH units drives habitability complaints and turnover.
Michigan MHC bridge underwriting starts with title and water shutoff liens — Detroit and Wayne County distressed parks need quiet title before hard money close, while West Michigan and Lansing corridor TOH communities trade $600K–$1.4M on 35–65 pads with municipal utilities. Freeze-thaw HVAC and roof scope on POH homes affects habitability capex in year-one NOI. Hub: manufactured home community financing.
Bridge IO 8.99%–13.5% at 65%–75% LTV on qualified sponsors; agency path for 50+ pad parks with city sewer after stabilization. Rates: MHP loan rates 2026.
Sub-$3M acquisitions: MHP loans under $3M · POH vs TOH: underwriting guide.
Michigan MHC segments and basis bands
| Segment | Geography | Basis band | Financing note |
|---|---|---|---|
| West Michigan exurban | Kent, Ottawa, Allegan fringe | $700K–$1.2M | Grand Rapids spillover |
| Thumb region | Huron, Sanilac, Tuscola | $550K–$950K | Well/septic |
| Detroit exurban | Livingston, Washtenaw fringe | $800K–$1.35M | Higher lot rent |
| Northern LP seasonal | Crawford, Oscoda fringe | $500K–$850K | Year-round vs seasonal |
Kent County exurban effective property tax ~1.2%–1.5% on commercial MHC land — Proposal A caps residential but commercial reassesses on sale. Thumb region parks at $580K–$820K often run 68%–74% occupancy with private well clusters.
Worked example — Kent County exurban 48-pad TOH
$790,000 — 71% occupancy, municipal water, West Michigan exurban
| Phase | Detail |
|---|---|
| Bridge acquisition | 69% LTV ($545,100) at 11% IO |
| Value-add | $52K — pad marketing, road patch, vacant lot prep |
| Fill-up | 71% → 85% (41 pads) over 11 months |
| Lot rent lift | +$38/pad ($340 → $378 avg) |
| Stabilized NOI | ~$7,850/mo after opex (includes winter plow reserve) |
| Refi | Michigan community bank $620K at 7.5% in month 14. Interest-only at that rate is $3,875 a month, so $7,850 of NOI covers it about 2.03 times. Amortization is not stated. |
Playbook: bridge-to-agency MHP
Michigan diligence checklist
- Seasonal vs year-round occupancy — northern LP parks need T-12, not peak month
- Well + septic capacity — Thumb region pad expansion limits
- Winter utility costs — plowing, heat line maintenance in pro forma
- POH ratio — model habitability opex separately from lot rent
- Property tax millage — Michigan Proposal A cap effects on sale reassessment
- Flood zone — Great Lakes shoreline fringe pads
West Michigan vs Thumb — basis and exit
| Factor | West Michigan exurban | Thumb region |
|---|---|---|
| Typical basis | $700K–$1.2M | $550K–$950K |
| Utilities | Municipal more common | Well/septic |
| Refi path | Grand Rapids-area bank | Community bank |
| Seasonality | Minimal | Some summer peaks |
Grand Rapids sponsors prioritize parks with city water stubbed to vacant pads — septic-limited communities cap refi upside regardless of occupancy gains.
Detroit exurban (Livingston/Washtenaw): Higher lot rent ($400–$450/pad) supports faster bank refi but $1.1M–$1.35M acquisition basis compresses yield — underwrite at 65%–68% LTV bridge to preserve refi headroom. Northern LP seasonal parks must document permanent-resident pad count separately from summer-only occupancy — banks exclude transient overlap from DSCR numerator. Michigan Proposal A reassessment on commercial land sale can bump tax 18%–22% year one — use post-close millage in refi pro forma.
Exit and refinance path
Michigan MHC refi requires year-round occupancy proof — northern rural parks cannot annualize July fill into DSCR files.
Community bank exit (Kent/Ottawa): Worked example: $620K permanent at 7.5% replaced $545K bridge at 85% occupancy. Banks deduct $800–$1,200/mo winter plow and utility from NOI — include in T-12 before refi application. 12–18 month bridge terms align with fill-up on 48-pad exurban parks.
Seasonal park caution (Northern LP): Crawford and Oscoda fringe parks with summer-only residents need permanent-resident count separately — banks refi on year-round lot rent, not seasonal camper overlap. Trailing 12-month P&L mandatory.
Detroit exurban (Livingston/Washtenaw): Higher lot rent ($400–$450/pad) supports faster DSCR clearance but competitive bidding at $1.1M–$1.35M compresses yield — bridge at 65%–70% LTV preserves refi headroom.
POH and septic: Thumb region septic capacity often limits expansion to 2–3 vacant pads — do not underwrite 90% occupancy without health department letter. POH vs TOH when 30%+ POH.
Insurance: Great Lakes shoreline fringe requires flood review — inland West Michigan avoids wind premium spikes seen on coastal states. Refi hub: MHP refinance & cash-out.
Related Michigan programs
- Fix and flip loans Michigan
- DSCR loans Michigan
- Hard money lenders Michigan
- Mobile home park loans Ohio — adjacent Midwest market
Include title/water lien search, occupancy T-12, and POH HVAC scope — Michigan MHC scenario · Great Lakes MHC hub · (833) 264-7776
Michigan MHC underwriting focus (2026)
- Title/water: Detroit/Wayne quiet title and water shutoff lien search before close
- Occupancy: Trailing 12-month including freeze-season vacancy on northern parks
- POH capex: HVAC and roof on POH homes before lot-rent pro forma
- Exit: Agency MHC on 50+ pad municipal parks; rural well/septic stays bank bridge longer
Include quiet title/water lien clearance and POH HVAC scope — Michigan pad-count file · Michigan commercial programs · (833) 264-7776.
Michigan prices, unemployment, and listing medians
Park underwriting still starts with the rent roll. These series only set the housing backdrop.
The all-transactions house price index for Michigan was 584.90 in the second quarter of 2026. A year earlier it was 559.18, a gain of 4.6%. The index is not seasonally adjusted. The first quarter of 1980 equals 100.
Not seasonally adjusted unemployment rose. August 2026 was 5.2%. August 2025 was 4.9%. Cite Michigan unemployment. Report both rates side by side. Do not convert the gap into a percent change of the rate.
Permits dropped. Michigan authorized 1,836 new private housing units in August 2026, versus 2,234 in August 2025. The count is not seasonally adjusted. Source: Michigan building permits. West Michigan and Wayne County do not share one permit story. Use the state figure as context, then underwrite the park’s own submarket.
September median asking prices, not seasonally adjusted:
| County | Market | September 2026 | September 2025 |
|---|---|---|---|
| Kent | Grand Rapids | $380,500 | $386,925 |
| Oakland | Detroit suburbs | $400,000 | $429,950 |
| Wayne | Detroit | $163,875 | $159,950 |
Sources: Kent County, Oakland County, and Wayne County.
Oakland listings fell hard. Wayne listings edged up and remain far lower. Do not price a Wayne park off an Oakland house ask. Kent listings slipped slightly. A Grand Rapids exurban park still needs its own pad comps.
Winter power cost, without pretending it is a Michigan tariff
The U.S. city average electricity price was 19.6 cents per kilowatt-hour in August 2026. A year earlier it was 19.0 cents. The series is not seasonally adjusted. It is a national city average, not a Consumers Energy or DTE tariff. Use it to remind the pro forma that power is not flat. Then replace it with the park’s own bills.
Freeze-season occupancy still has to be inside the trailing twelve months. A July fill does not annualize. Budget heat-tape, plowing, and vacant park-owned homes before you lift lot rent in the model.
Bridge terms versus a rental DSCR loan
On a qualified park purchase, Jaken Finance Group can advance up to 90% of the price. The rate range is 8.99%–13.5% interest-only. The term is 12–24 months. Closing runs 7–10 business days on a complete file. A water-shutoff lien or a quiet-title gap stops that clock. The calendar does not cure title.
Many Michigan park files still fund at 65%–75% because of seasonality, wells, or park-owned homes. That band is common. It is not the cap.
A DSCR rental loan covers houses and small multifamily, not the park by default. Rates are 5.75%–10.5%. Close is about 14 business days. Maximum leverage is 85% purchase, 80% cash-out, and 85% rate-and-term. Link those houses to Michigan DSCR loans. Keep the park on the bridge or on a later bank note.
Illustration: Kent County carry plus a winter reserve
Illustration, not a funded file and not a quote.
Purchase $480,000. Bridge at 75% is $360,000. At 12% interest-only, monthly interest is $3,600. That is $360,000 times 0.12, divided by 12. Sixteen months of interest, a term that can cross a winter, is $57,600. Sixteen months sits inside the 12–24 month term.
At 90% of this purchase the loan would be $432,000. Monthly interest at 12% would be $4,320. Do not use 90% on a Thumb well-and-septic park that lacks a health-department letter.
Twenty-four occupied pads at $370 gross $8,880. Operating costs of $3,200, plus a $900 winter reserve used only in this illustration, total $4,100. Net operating income is $4,780. Coverage of the $3,600 interest is about 1.33 times ($4,780 divided by $3,600). The $900 is an assumption so the math is visible. Replace it with bids.
Title work in Wayne County is a separate budget from this Kent County sketch. Do not mix the two files in one sources-and-uses page.
Test the payment on the MHP loan calculator. Program ranges are on the bridge loan guide. Jaken Finance Group can review a Kent, Wayne, or Thumb rent roll at (833) 264-7776.
Michigan MHC pad-count diligence
Michigan MHC refi requires clean title on Detroit/Wayne acquisitions — water shutoff liens block bank takeout. West Michigan TOH with municipal sewer at 80%+ occupancy refi at regional banks; Upper Peninsula and rural well parks need 6-month debt service reserve on bridge when occupancy is seasonal.
Include quiet title/water lien clearance and POH HVAC scope — Michigan pad-count file · Michigan commercial programs · (833) 264-7776.
Michigan file checkpoint
Michigan pad-count files need Wayne County water shutoff lien search on Detroit-area MHC buys, West Michigan municipal sewer occupancy in the T-12 vs Upper Peninsula seasonal vacancy, and POH roof reserves in the bridge budget — sub-50-pad rural well parks rarely clear agency takeout without a documented debt-service reserve. Submit scenario · (833) 264-7776.
Michigan park / niche segment gates — Detroit (2026)
- MHP underwriting on Detroit — pad count, utility infrastructure, and ~1.38% tax on operating entity.
- Detroit title and water shutoff liens — quiet title before hard money close — segment comps do not cross into vanilla SFR Grand Rapids pricing.
- Bridge 8.99%–13.5% IO with documented operating history or value-add scope before agency take-out.
Detroit MHP bridge 8.99%–13.5% IO · Michigan hard money · (833) 264-7776.