Texas MHC peril split: DFW hail vs Houston flood
Harris County flood elevation and wind deductibles can spike PITIA 15%–25% — bridge DSCR at 1.30x+ with reserve. DFW exurban 55–90 pad TOH with municipal water at 80%+ occupancy clears regional bank before Freddie 50-pad floor.
Permian travel-stop parks: use trailing rent, not rig-count pro forma — energy-cycle volatility kills refi on boom-year broker sheets.
Texas MHC bridge files must separate Houston flood from DFW hail corridors — roof-forward POH capex and wind deductibles hit NOI differently in Harris County versus Collin/Denton exurban TOH at $1M–$2.5M on 50–100 pads. Energy-sector job cycles in Permian fringe parks need trailing rent, not boom pro forma. Hub: manufactured home community financing · Refinance: MHP cash-out.
Bridge 8.99%–13.5% IO at 65%–75% LTV on qualified sponsors; agency MHC when 50+ pads and city utilities stabilize. Rates: MHP loan rates 2026.
Sub-$3M: MHP loans under $3M · POH: POH vs TOH.
Texas MHC segments and basis bands
| Segment | Geography | Basis band | Financing note |
|---|---|---|---|
| I-35 corridor | San Antonio, Austin, Waco, DFW exurban | $900K–$2.5M | Strong fill-up; municipal utilities |
| East Texas rural | Tyler, Longview, Lufkin | $600K–$1.2M | Well/septic common |
| Permian-adjacent | Midland/Odessa fringe | $750K–$1.8M | Verify occupancy durability post-oil cycle |
| Gulf Coast | Corpus, Houston fringe | $1M–$2.8M | Flood + wind diligence |
Williamson and Bell counties see $950K–$1.4M on 45–60 pad TOH parks with city water — property tax protest culture means trailing tax bill may understate post-close liability. East Texas Smith and Gregg counties offer $650K–$900K mom-and-pop parks at 65%–72% occupancy. Harris County fringe requires FEMA zone review — AE parcels may cap bridge at 65% LTV.
Worked example — Bell County 52-pad TOH
$980,000 — 74% occupancy, municipal water, Central Texas exurban
| Phase | Detail |
|---|---|
| Bridge acquisition | 70% LTV ($686,000) at 11.25% IO |
| Value-add | $72K — pad marketing, road patch, signage, vacant lot prep |
| Fill-up | 74% → 86% (45 pads filled) over 11 months |
| Lot rent lift | +$40/pad ($380 → $420 avg) |
| Stabilized NOI | ~$9,850/mo after opex |
| Refi | Community bank $735K at 7.125%, 1.24x DSCR — month 14 |
Playbook: bridge-to-agency MHP
Texas diligence checklist
- FEMA flood zone — especially Harris, Galveston, Jefferson counties
- Well + septic capacity — pad expansion limits on rural parks; TDHCA permit history
- Property tax trajectory — Texas appraisal protest history on commercial land
- POH ratio — model habitability opex separately from lot rent
- Title — mineral rights — rare but material on rural acreage
- Municipal vs private water — affects agency refi eligibility on 50+ pad parks
Texas regulatory context: Texas Department of Housing and Community Affairs — manufactured housing
I-35 vs East Texas — basis and exit
| Factor | I-35 exurban | East Texas rural |
|---|---|---|
| Typical basis | $900K–$2.2M | $600K–$1.2M |
| Utilities | Municipal more common | Well/septic |
| Refi path | Regional bank | Community bank + seller carry |
| Insurance | Moderate | Lower than Gulf Coast |
When bridge beats agency in Texas
| Situation | Why bridge first |
|---|---|
| Sub-50 pads | Agency MHC minimum not met |
| 60%–75% occupancy | Banks want 80%+ for permanent |
| Well/septic rural | Agency prefers municipal utilities |
| 30-day close | SBA/agency timeline 90–180 days |
| Pad fill in progress | Refi DSCR fails until T-12 stabilizes |
Exit and refinance path
Texas MHC exit planning starts with utility type and submarket — I-35 corridor parks with municipal water follow a different refi clock than East Texas well/septic TOH.
Community bank refi (Bell/Williamson): After 80%+ occupancy for 90 trailing days and lot-rent lift documented on rent roll, regional banks typically refi at 65%–75% LTV with 1.20x–1.30x DSCR. On the Bell County example, $735K permanent at 7.125% replaced $686K bridge — sponsor pulled ~$49K cash-out after closing costs while holding 86% occupancy.
Agency path (50+ pads, municipal utilities): Fannie/Freddie MHC becomes viable when T-12 NOI supports 1.25x+ at agency rate — often 6.5%–8% fixed vs bridge 8.99%–13.5% IO. Sequence: bridge-to-agency MHP playbook.
Permian fringe caution: Worker-housing pads tied to oilfield demand need occupancy stress test at 60% fill — bridge terms should include 12–18 month extension option before LOI. Mineral rights on rural acreage: title review mandatory; severed minerals rarely block MHC but affect expansion rights.
Gulf Coast: Harris and Galveston fringe parks require wind/flood quotes in pro forma — insurance can compress NOI 8%–12%, pushing refi LTV down 5 points. Inland I-35 sponsors avoid this drag entirely.
DSCR hold alternative: Operators keeping TOH homes as rentals post-stabilization may cross to DSCR loans Texas at 5.75%–10.5% on converted POH — separate from lot-rent park refi.
Related Texas programs
- RV park loans Texas — outdoor hospitality sibling
- Fix and flip loans Texas
- DSCR loans Texas
- Hard money lenders Texas
Attach DFW vs Houston peril split, hail/flood insurance, and municipal utility map — Texas MHC scenario · Texas MHC hub · (833) 264-7776
Texas MHC underwriting focus (2026)
- Peril split: Houston flood vs DFW hail — separate insurance bind and roof capex line
- Occupancy: Trailing 12-month; Permian fringe uses trailing rent not boom pro forma
- Utilities: Municipal water stub on expansion pads for faster refi
- Exit: Agency MHC on 50+ pad DFW/Houston exurban when utilities municipal
Send DFW/Houston peril split and municipal stub map — Texas pad-count file · Texas commercial programs · (833) 264-7776.
Texas MHC pad-count diligence
Texas MHC refi splits DFW hail roof reserves from Houston flood elevation — Harris County parks need 1.30x DSCR cushion on bridge when wind/flood PITIA spikes. DFW exurban 55–90 pad TOH with municipal water at 80%+ occupancy clears regional bank; Permian travel-stop parks use trailing rent, not rig-count pro forma.
Send DFW/Houston peril split and municipal stub map — Texas pad-count file · Texas commercial programs · (833) 264-7776.
Texas park / niche segment gates — DFW (Dallas–Fort Worth) (2026)
- MHP underwriting on DFW (Dallas–Fort Worth) — pad count, utility infrastructure, and ~1.68% tax on operating entity.
- Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors — segment comps do not cross into vanilla SFR Houston pricing.
- Bridge 8.99%–13.5% IO with documented operating history or value-add scope before agency take-out.
DFW (Dallas–Fort Worth) MHP bridge 8.99%–13.5% IO · Texas hard money · (833) 264-7776.