Updated
MHC cash-out — stabilized vs. value-add refi math
Stabilized 45-pad park: $2.8M appraised, 70% LTV cash-out = $1.96M at 6.75%–8.25% bank/agency vs. bridge 8.99%–13.5% if occupancy still climbing.
| Occupancy | Typical refi product | Max LTV |
|---|---|---|
| 90%+ stabilized | Bank / agency-adjacent | 65%–75% |
| 75%–89% | Bridge or community bank | 60%–70% |
| Below 75% | Bridge only | 55%–65% |
Extract equity for pad expansion or next acquisition — MHC financing hub · commercial calculator · Freddie MHC overview.
Investors searching mobile home park refinance, cash-out refinance mobile home park, and MHP bridge to agency refinance need capital that matches where the asset sits in its lifecycle — turnaround bridge vs. stabilized permanent debt.
Jaken Finance Group finances mobile home park bridge refinance and cash-out nationwide — all 50 states — on commercial lot-rent underwriting. Acquisition hub: mobile home park loans.
Compare: bridge-to-agency playbook · MHP loan rates 2026 · POH vs TOH underwriting
Refinance types compared
| Refinance type | Best when | Typical leverage | Timeline |
|---|---|---|---|
| Rate-and-term | Lower rate, same balance | 65%–75% LTV | 45–120 days |
| Cash-out | Extract equity after value-add | 65%–70% LTV | 30–90 days |
| Bridge refi | Park not agency-ready yet | 65%–75% LTV | 7–10 business days |
| Agency refi | 50+ pads, 80%+ occ, clean books | Up to 80% LTV | 90–180 days |
Bridge rates: 8.99%–13.5% interest-only. Permanent agency/bank: often 6.5%–8% on stabilized NOI.
Bridge-to-agency path (summary)
Most value-add MHP refis follow bridge carry → pad fill → agency or bank permanent. Target 80%+ occupancy and 1.25x DSCR on trailing lot-rent NOI before permanent refi. Full phase-by-phase playbook — not duplicated here: bridge-to-agency mobile home park playbook. Rate bands: MHP loan rates 2026.
Cash-out use cases
| Scenario | Why cash-out |
|---|---|
| Recycled capital | Pull equity after pad fill to fund next acquisition |
| Infrastructure upgrade | Septic, water, road paving — raise lot rent |
| Portfolio recap | Consolidate debt across multiple parks |
| Partner buyout | Buy out silent partner at stabilized value |
Model post-refi DSCR — cash-out increases debt service; lot rent must support the new payment.
Underwriting — what lenders review on MHP refi
| Document | Purpose |
|---|---|
| T-12 P&L | Trailing income — not one peak month |
| Rent roll | Pad-by-pad lot rent, POH vs TOH split |
| Utility bills | RUBS vs. park-paid — affects NOI |
| Insurance quote | Wind, flood, liability — especially FL/coastal |
| CapEx history | Deferred maintenance risk |
| Occupancy trend | 90-day stabilization for permanent refi |
POH vs TOH: POH vs TOH underwriting
Worked example — 42-pad refi after fill-up
Original bridge acquisition: $980,000 at 72% LTV
| Phase | Detail |
|---|---|
| Day 1 | 68% occupancy — bridge at 8.99%–13.5% IO |
| Month 12 | Fill to 84% — raise lot rent 8% |
| Refi | Community bank at 70% LTV, 7.1%, 25-year am |
| Cash-out | $185K extracted for second park down payment |
| DSCR at refi | 1.28x on trailing 12 |
Sub-$3M deals: MHP loans under $3M
State market examples
When cash-out beats rate-and-term
Cash-out increases debt service — lot rent must support new payment at 1.25x DSCR on trailing income. Use cash-out when:
- Pad fill completed and equity is trapped in stabilized NOI
- Second acquisition needs down payment recycled from park one
- Infrastructure CapEx (septic, water, roads) raises lot rent post-project
- Partner buyout at appraised stabilized value
Rate-and-term without cash-out fits when existing coupon is high but occupancy already stable — no need to increase balance.
Refi rejection reasons (MHP)
| Reason | Fix |
|---|---|
| Snapshot occupancy vs T-12 | Show 90-day trailing fill |
| POH opex understated | Separate habitability reserve |
| Insurance quote stale | Refresh wind/flood on coastal |
| DSCR under 1.25 post cash-out | Reduce proceeds or raise rent |
Underwriting mistakes sponsors make
- Applying for agency refi at 70% occupancy
- Cash-out for unrelated spec without DSCR headroom
- Mixing POH home sale revenue with lot rent without segmentation
MHP refi rate comparison (2026)
| Product | Rate band | Best when |
|---|---|---|
| Bridge cash-out | 8.99%–13.5% | Value-add, not agency-ready |
| Agency / bank permanent | ~6.5%–8% | 80%+ occ, 1.25x DSCR, clean books |
| DSCR on park (select) | 5.75%–10.5% | Smaller parks, SFR-adjacent |
State guides: mobile home park loans Florida · POH vs TOH underwriting · manufactured home community financing · bridge-to-agency playbook
Lot-rent NOI on stabilized parks typically clears 1.25x DSCR at 70% LTV — the threshold most agency and bank permanent lenders require before refinancing bridge debt at lower coupons.
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POH conversion before refi — lender preference
Parks with 40%+ park-owned homes often must convert to tenant-owned before agency refi:
| POH share | Refi path |
|---|---|
| Under 20% | Bank/agency likely |
| 20%–40% | Conversion plan required |
| Over 40% | Bridge 8.99%–13.5% until TOH-heavy |
Freddie Mac MHC guidelines · MHC hub · commercial calculator · DSCR manufactured.
Pad expansion refi — engineering before leverage
Adding 10 pads requires county health sign-off on septic capacity — not just graded pads:
| Due diligence | Cost | Timeline |
|---|---|---|
| Septic/percolation study | $3K–$8K | 4–8 weeks |
| Utility upsize (water main) | $15K–$40K | 8–16 weeks |
| Pad grading + electric | $8K–$15K per pad | Draw schedule |
Bridge 8.99%–13.5% funds expansion; refi when stabilized occupancy supports bank DSCR. MHC hub · Freddie MHC · commercial calculator · DSCR manufactured.
Electricity is an NOI line, not a rounding error
The U.S. city average price of electricity was 19.6 cents per kilowatt-hour in August 2026. It was 19.0 cents a year earlier. The series is FRED APU000072610. A park that pays the meters, or that bills them back through RUBS, feels that move in either expenses or collections.
If the park pays electric, a one-cent move on a heavy summer bill is real cash. If tenants pay, collection friction and vacancy still hit you when a pad goes dark and the meter does not. Put twelve months of utility invoices in the refinance file. A single August bill annualized will overstate expense in a mild climate and understate it in a hot one.
Owners’ equivalent rent, a national shelter index, was 443.713 in August 2026, up 3.1% from 430.5 a year earlier, on FRED CUSR0000SEHC. Lot rent does not have to match that index. The index is a reminder that housing cost is still rising in the broad data. A cash-out that assumes flat lot rent for three years is the aggressive case, not the base case.
Illustration: coverage before and after a larger payoff
This is an example, not a closed park. Fifty pads. Forty are occupied. Lot rent is $375. Monthly lot rent collected is 40 × $375 = $15,000, or $180,000 a year. Operating expenses, including the utilities the park still pays, are 35% of that rent, or $63,000. NOI is $117,000.
A bridge of $800,000 at 11% interest-only costs $88,000 a year. Coverage is $117,000 / $88,000 = 1.33. That clears a 1.25 test on these figures.
Cash out another $200,000 and the balance is $1,000,000. Interest at the same 11% is $110,000. Coverage falls to $117,000 / $110,000 = 1.06. The park did not get worse. The loan got larger. That is the usual reason a cash-out refinance is declined after a pad-fill that “should have” worked.
Jaken Finance Group bridge refinance pricing stays inside 8.99%–13.5% interest-only. Term on bridge debt is 12–24 months. A complete bridge file can close in 7–10 business days. Leverage up to 90% of purchase is a purchase-money ceiling on qualified bridge files. A cash-out on a half-empty park will not be priced like a fresh purchase at that ceiling. Many refinance files land between 55% and 75% of value, depending on occupancy, as the table higher on this guide describes.
What to rebuild in the trailing twelve
Lenders read the year, not the best month. Line the months up before you apply:
| Month block | What it has to show |
|---|---|
| Months 1–3 | Occupancy you can tie to the rent roll, not a spreadsheet average |
| Months 4–9 | Lot-rent increases actually billed, with the notice you sent |
| Months 10–12 | Utility invoices and the RUBS recovery, side by side |
| Whole year | Insurance, taxes, and any park-owned home expense kept out of lot-rent NOI |
Park-owned home payments are not lot rent. If you mix them, coverage looks stronger than the land loan. Separate the home note, the insurance on homes you own, and the lot-rent ledger. A buyer of a home from the park is a different transaction from a tenant paying to keep a home on your pad.
National house prices rose 2.6% from July 2025 to July 2026 on the FHFA purchase-only index (443.52 versus 432.40), FRED HPIPONM226S. That is not a mobile-home-park cap rate. It is a reason not to invent a 15% value jump with no new rent.
Before you request a cash-out number
- Trailing profit and loss and a pad-level rent roll
- A map of occupied, vacant, and park-owned pads
- Utility bills for twelve months and a one-sentence RUBS description
- The use of proceeds: next park, septic, or a partner buyout
- The coverage math at the new balance, using the example method above with your NOI
- The permanent lender’s occupancy floor, if you hope to leave bridge debt this year
Phone (833) 264-7776. Say the pad count, the occupied count, and whether you need cash out or only a lower rate. Those are different loans.
A one-cent power rate, applied to a made-up bill
The August figures above are 19.6 cents and 19.0 cents. The gap is 0.6 cents per kilowatt-hour. On an illustration of 1,000 kilowatt-hours, that gap is $6 for the month. It is not a metered study of any park. It shows why “utilities are stable” is a lazy line in a refinance memo.
Scale the same illustration to 40 park-paid meters at 1,000 kilowatt-hours each. The month’s gap is 40 × $6 = $240. A year of months like that is $2,880 before you argue about summer peaks. If tenants pay the meters, you do not pocket the $2,880. You still need the RUBS ledger to prove you are not paying it anyway.
House buyers are looking at a different rate. The average 30-year fixed was 7.28% for the week of October 1, 2026, on FRED MORTGAGE30US. A resident who can qualify for a house near that print is a move-out risk. Lot rent has to stay sensible against that choice. Cash-out proceeds that force a sharp lot-rent hike can empty the pads you just filled.
Bring the utility invoices and the lot-rent notice history to the same call. Jaken Finance Group will tell you whether the file is a bridge refinance or whether it should wait for a longer rent trail.