Posted by Jim Ray-TN on February 28, 2001 at 19:54:53:
Hi Marc,
Here’s more information about Section 207(m).
http://www.hud.gov:80/cfda/14127.html
This looks like it could be a lot of help.
Jim
FHA 207(m) Loan Guarantee for MH Parks - Posted by Marc in Portland
Posted by Marc in Portland on February 28, 2001 at 14:24:15:
Gang,
Last night, on Edward Hicks’, a MH consultant, Web site, I saw a write up about the FHA 207(m) loan guarantee program for MH land lease parks. Apparently, they loan up to 90% of the money to acquire an existing community that needs rehabilitation, refinance such a community, or develop a new community.
I’ve searched the archives here for “207” and “207(m)” but never saw anything. Has anyone here heard of this? 90% financing! I’m there, if it’s real.
Marc
Re: FHA 207(m) Loan Guarantee for MH Parks - Posted by Chris Baker
Posted by Chris Baker on March 02, 2001 at 10:39:50:
Marc, The program # is 14.127, a subsidiary of program #14.134 falls under hud
Contact;
Policies and Procedures Division
Office of Insured Multifamily Housing Development
U.S. Department of Housing and Urban Development
Washington, DC 20410 202-708-2556
Hope this helps, and thanks to the publications of Matthew Lesko for the information. However, (207(M) is not a loan, it is a loan guarantee. You’ll still have to qualify (I believe through traditional lending instutons), but that should not be a problem if you do some homework, prepare a decent loan proposal package, with a workable business plan and written estimates both for rehab/renovations and projected / historical rent rolls. Good Luck
Re: FHA 207(m) Loan Guarantee for MH Parks - Posted by ray@lcorn
Posted by ray@lcorn on March 02, 2001 at 10:29:50:
Marc,
(Sorry for the delay in answering your email on this subject. It’s been a busy week.)
I contacted Ed Hicks about five or six years ago about doing an FHA 207 loan. I went as far as getting the paperwork started, and when I got to the part about the restrictions on how the funds were to be used, along with the requirements for documentation and ongoing verifications and inspections, I decided that the particular park I was working with at the time (265 spaces)was not suitable for the program, and Ed agreed with me. That’s the sum total of my experience with the program.
That is not to say that the program does not have merit. It does, it is real, and I think in certain instances it could be a great dealmaking tool. I would encourage you to investigate the program in regards to a specific property though rather than doing a bunch of personal pre-qualification before finding a property. The requirements are so property specific that you have to evaluate each deal as a stand alone case. Ed Hicks will be the first to tell you that this is not for everyone or every park. Any one who would draw blanket conclusions is missing the point.
Good luck!
ray
It pays to search - Posted by Marc in Portland
Posted by Marc in Portland on February 28, 2001 at 14:32:56:
http://www.hud.gov/local/sea/mfh/seamflym.html has some details on that loan program.