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 | 14–30 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.