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HIGHER LOAN AMOUNT FOR UPGRADES DOESN’T CHANGE MONTHLY PAYMENT

The Refinance of a Los Angeles County mobile home park loan was completed on February 2, 2004 for $500,000 with a regional portfolio lender.  Vince Reynolds and Norman Sangalang of MHRV Advisors represented owner in this transaction.

The mobile home park is a 33 space, two star all ages park with no park owned homes and a single family home.  Amenities included a small office, laundry room and storage buildings. The park was built in 1947 and is in fair condition. The new $500,000 note and first trust deed has a starting rate and floor of 4.75% amortized and due in 25 years.  The variable rate loan was based on a 2.875% spread over the 6-Month LIBOR which was at 1.160% at the time of funding.   The fully indexed rate of 4.035% would require a an increase of nearly three quarters of a percent before even hitting the floor of 4.75%.

The new mobile home park loan replaced a smaller loan of $340,000 at a higher interest rate. Even with the $160,000 of cash out the lower interest rate kept the payment close to the old payment.  The $160,000 will be used towards streets improvements and upgrading the utility infrastructure.  

Mobile Home Park Loans in CA, Los Angeles County  

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