Resident Owned Manufactured Home Communities (ROCs)

Crown Capital Group, Inc. specializes in providing long term, 15 – 25 years, fixed rate fully amortizing financing for Resident Owned Manufactured Home Communities. With the very low historical interest rate environment, we have assisted numerous ROC’s obtain very favorable financing terms which has eliminated their concerns of future payment and rate increases along with eliminating the concern for upcoming balloon payments. In addition, the lenders that we work with are typically not commercial banks so you do not have to comply with the various requirements (interest reserves, depository relationships, ongoing debt service requirements) imposed by the banking industry.

Below is a general outline of our Resident Owned Manufactured Housing Loan Program. If you have a balloon payment or interest rate adjustment coming up in the next couple of years or you are considering refinancing your current loan for other reasons, we would welcome the opportunity to talk with you.

LOAD AMOUNT: $1,000,000 – $50,000,000
INTEREST RATES: Quoted on a deal-by-deal basis due to market volatility
LOAN TERMS Up to 30 Years fixed.
RATE/LOCK: Rate locked upon acceptance of Application or Commitment Spread locked upon acceptance of Loan Application
AMORTIZATION 15 – 30 years (varies with age of community and LTV)
GOOD FAITH DEPOSITS: 1% with Application; 1% with Commitment or at Rate Lock. Deposits refunded at closing.
FUNDING: 30-75 days – Immediate funding
FORWARD COMMITMENT: Available up to 9 months
RECOURSE: Non-recourse to shareholders (Borrower – carve-outs only)
PREPAYMENT: Yield maintenance/ Lender will allow a percentage (3% – 10%) of the loan to be prepaid without penalty during certain loan years and varies depending upon the lender program.
LENDER FEES: $3,500 – 10,000 (depending upon the lender and loan amount)
PREPAYMENT Prepayment options include: 1) yield maintenance with the last 60 days open at par; 2) fixed declining penalty; 3) a combination of yield maintenance and fixed deciling; 4) 10% prepayment w/o penalty. Rates about may not reflect optional fixed declining penalties.
ESCROWS: Typically waived for RET & INS on low LTV. Higher LTV usually require escrows.
D.S.C. RATIO: 1.25 (Only required for underwriting)
SECONDARY FINANCING: Permitted with lender’s consent on most transactions
LOAN TO VALUE: 75% (Value determined as if land leased community)