Thanks for your expertise and insights on this Thomas65% to 75% LTV. LTV very much a function of CAP rate and DCR. In BC likely far below 70%, closer to 50 or 60% LTV due to very low CAP rates and pricing of many MHPs based on development land values, rather than CAP rates.
Interest rates are mid to high 3% range.
20-25 year amortization. 20 years fairly common but 25 year also not unheard of.
We're buying three parks right now in Central AB, at around $40,000/pad, one with a floating rate at prime plus 1, one year open; another one with a three year rate at 3.5% and the third with a 5 year rate at 3.85%. Great investment opportunity, $100,000 minimum, accredited investors only, btw. Now that BC decided to go into have-not province status again with them socialists, AB all of a sudden looks even better !!
Yes start with credit unions as most major banks to not go there. Or use a mortgage broker.
Essentially local credit unions are the best option. You can find better LTV and rates with the local credit unions. A lot of files end up at 50 LTV. Banks and most privates typically stay clear of this space unless you have other collateral.
We bought a MHP in Cranbrook last year and got a 75% LTV. V is a function of cap rate and might be lower than price. We paid $2.7M and now appraised for $3.3M. So had you paid $3.3M the loan would have been only 61% range. So there is LTV and then there is LTP, P being price.
Generally credit unions are your best option indeed.
One would think so, but they do NOT, neither the park nor the mobile home. Mobile homes usually get poor rates as they do not own the land, so they are financed like cars or boats, aka chattel mortgages, with up to 15 year amortization. Your best bet on a mobile home park (i.e. the land only) are credit unions.CMHC must finance mobile home parks ...