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%, 1.27x DSCR — month 14 |
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 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.