FHA Mobile Home Park Financing

FHA 207m Mobile Home Park/Manufactured Housing Community Loans

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FHA Mobile Home Park Financing Overview

FHA mobile home park financing, pursuant to the HUD 207m program, is available for new construction or substantial rehabilitation of mobile home parks and manufactured housing communities nationwide in both primary and secondary housing markets. FHA mobile home park financing is self-amortizing and provides very low interest rates. FHA 207m loans are non-recourse with standard carve-outs and are underwritten for 30-40 years. Learn more about all FHA loan programs we offer.

  • Minimum loan amount $1 million
  • Non-recourse with standard carve-outs
  • Amortization terms from 30-40 years
  • Supplemental loans are available
  • Loan to value ratio 90%
  • Debt Coverage Ratio 1.11x
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FHA Mobile Home Park Financing Term Sheet

GSE Loan Program FHA Section 207m Mobile Home Park Financing
Eligible Properties Professionally operated and managed mobile home parks with at least 50 home/pad sites
Eligible Borrowers For-profit individuals and entities and not-for-profit single asset entities
Eligible Locations FHA mobile home park financing is available nationwide in both primary and secondary housing markets
Minimum Loan Amount FHA mobile home park financing requires a $1,000,000 minimum loan amount
Maximum Loan Amount FHA mobile home park financing has no statutory maximum loan amount. Maximum loan amounts are determined by loan to value ratio (LTV) and and debt service coverage ratio (DSCR).

  • $20,065 per space (as defined by FHA). This amount can be increased up to 240% in selective areas
  • 90% of the value of the property after improvements
  • The amount that can be debt serviced by 90% of the stabilized NOI
  • If Substantial Rehabilitation, these limits will also be applied:
    • For property held in fee but no land or structures involved, the loan cannot exceed 100% of cost
    • If the proceeds will be used to satisfy an existing mortgage, the loan amount may not exceed the sum of the estimated repair and rehab costs plus the lesser of (i) the outstanding indebtedness or (ii) 90% of the estimated “as-is” value prior to rehabilitation
    • If the property is being acquired and rehabbed, then the loan amount cannot exceed (i) 90% of the cost of repairs plus (ii) 90% of either the purchase price or “as-is” value whichever is lower.
Loan Term FHA mobile home park financing terms range from 30 to 40 years
Amortization Term 30 or 40 year self amortizing
Loan to Value Ratio Loan to value ratio for FHA mobile home park financing is limited to 90% of cost
Required DSCR or DCR 1.11 X minimum debt service coverage ratio (DSCR)
Interest Rate Market interest rates change daily. Visit our Interest Rates page or call for quote
Loan Origination Fee Negotiable, but generally based on property condition and strength of borrower
Interest Only Interest only repayment terms are available for a portion of the loan term
Interest Accrual Either actual/360 or 30/360 are acceptable
Prepayment All FHA mobile home park financing is subject to a prepayment penalty calculated using either a yield maintenance or defeasance formula for all but the last six months of the term of the loan.
Personal Liability FHA mobile home park financing is non-recourse as to the borrower with standard carve-outs
Loan Assumption All FHA loans are assumable, subject to HUD approval and payment of 1% assumption/transfer fee
Supplemental Financing Permitted
Escrows Escrow for the payment of taxes and insurance is required with all FHA mobile home park loans
Replacement Reserves Reserves for replacement are required at $25 per pad/year, but the requirement may be waived for mobile home parks in above average condition as determined by the underwriter.
Minimum Occupancy 85% minimum occupancy required
Property Requirements
  • Project must have 50 pads minimum
  • Minimum of 95% tenant owned homes
  • Prefer more than 50% double-wide homes
  • Community streets must be paved
  • Off-street community and visitor parking required
  • Homes must be fully skirted
  • Hitches and jack posts must be concealed
  • Additional community amenities preferred but not required
  • Homes should conform to applicable manufactured housing HUD Code standards
  • Leases with residents cannot contain an option to purchase pad sites
Preliminary Submission Package
  • Location map and property description and photos (or website info)
  • Unit mix showing type, number, size, and current rent of all units
  • Description of commercial space if any
  • Last three months rent rolls along with year-to-date financial statements
  • Last full 36 month operating statements or pro-forma if recently completed construction
  • Business resume and financial statement of principals and entity
  • Terms of existing debt if any
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