First and foremost, there is no collateral value for a mobile home when it's in a park. It is a liability. A mobile home is only considered to be an appreciating asset when it is occupying it's own tax lot, and has been de-titled at the DMV.

Any conventional financing program will not consider any income from park-owned mobiles for debt service, though some higher rate alternative programs are available which consider all park income. The most common problem buyers have with these types of parks is the numbers Realtors throw at them. They will often times consider all income when determining cap rates, value, etc. The income from mobiles will not be used in determining real estate value. Again, this is due to fact that mobiles in parks are not real estate.

This issue often leaves buyers in the middle of a purchase contract with a need for additional cash equal to the value of the mobiles. Real estate loans are not the answer. One of the most common solutions is to have the seller carry a note for the value of all mobiles. If seller financing won