Mobile home parks have quietly become one of the most resilient asset classes in commercial real estate. Pad rents are sticky, occupancy is durable, capital expenditure is light relative to multifamily, and tenant turnover is structurally low because residents own the home and the move cost is meaningful. The asset works.
What hasn't worked is the small-balance financing market for MHC. Agency execution (Fannie/Freddie) is real but selective. Banks treat the asset class as a one-off. Most CMBS shelves won't touch sub-$10M park loans. The sponsors actually building MHC portfolios — operators with three to twelve parks — keep finding themselves with a financing gap.
Riverside Park Capital lends directly into that gap.
Up to 75% LTV with Unlimited Cash-Out
Our MHC program goes to 75% LTV on acquisition, refinance, and cash-out refinance. The cash-out treatment is the structural feature that separates this from most of what's available below $10M.
There is no fixed dollar cap on cash-back proceeds. If the park appraises and the in-place rent roll supports a 1.20 DSCR at 75% leverage, you take 75% of value out — full stop. Cash-out is governed by leverage and cash flow, not by an arbitrary dollar limit or a "rate-and-term-only" rule.
What We Finance
- Mobile home parks (MHP) — tenant-owned home (TOH) parks
- Manufactured housing communities (MHC) — institutional and small-balance
- Park-owned-home (POH) communities, with POH ratio capped at 25% of pad count for permanent debt
- 55+ / age-restricted MHC
- Resident-owned community conversions (case-by-case)
Loan Parameters
- Loan size: $500,000 – $10,000,000
- Maximum LTV: 75% (acquisition, refinance, cash-out refinance)
- Cash-out cap: Unlimited — no fixed dollar limit
- Minimum DSCR: 1.20 on stabilized permanent debt
- Minimum occupancy: 80% sustained for 12 months (lower considered case-by-case for value-add bridge)
- Term: 5–10 years permanent; 12–36 months bridge
- Utilities: City water and city sewer preferred; private utilities considered with engineering review
- POH ratio: Cap of 25% of pad count for permanent financing; bridge accepts higher with conversion plan
- Geography: Top 200 U.S. MSAs only
Worked Example: Cash-Out Refinance on a Stabilized Park
Sponsor owns a 105-pad MHC in a Top 100 MSA. Acquired in 2020 for $5.8M with seller financing. Stabilized after sub-metering, infill, and rent normalization. Trailing-12 NOI is now $720,000. Appraisal at refinance comes in at $10.2M.
We can lend to 75% LTV — $7.65M — provided DSCR clears 1.20 (it does at current rate levels). Payoff of the seller note plus closing costs leaves roughly $1.6–$1.9M in cash to the sponsor at closing, with no separate cash-out cap reducing that figure.
Most competing programs in the small-balance MHC space would limit cash-back to a fixed dollar amount or require additional seasoning. We do not.
What We Look For Diligence-Wise
- 12 months of trailing rent rolls and bank statements showing in-place collections
- Operating P&L with utility expense detail and capex history
- Confirmation of pad count, occupied pads, POH vs TOH split, and any RV pads
- Utility configuration (city water/sewer vs. private well/septic)
- Sponsor experience — prior parks owned and operated
What We Don't Finance
- Parks in rural or sub–100,000-population markets (outside Top 200 MSAs)
- Parks with majority park-owned homes on permanent debt
- Parks with unresolved environmental, septic, or well capacity issues
- Loans below $500,000
Get a Quote
The fastest path is a one-page summary: park address, pad count, occupancy, trailing-12 NOI, current debt balance, and use of proceeds. We respond within one business day.
About the author
Capital Markets Desk
Research & Analysis
The Capital Markets Desk at Riverside Park Capital provides expert perspectives on commercial and residential real estate lending, market trends, and investment strategies.