Posted by James Harris on September 12, 2009 at 21:49:00:
I can help you with the fundings you requested. DROP ME A LINE.
MHP Loans & non-refundable processing fees - Posted by Amy
Posted by Amy on September 10, 2009 at 12:54:55:
We are interested two Mobile Home Parks ($300K & $1.1MM); both have good financials and we have the 25%-30% DP, which should get the debt coverage of 1.25-1.3 lenders usually want to see. MHP’s are much more difficult to finance than apartment bldgs.
Brokers that I talk to want an upfront non-refundable processing fee with an LOI. I think that’s crazy and told them I am okay with the a good faith deposit that can be earned if they deliver on the LOI terms.
One broker without a fee has been looking for financing for us for the past couple months and come up dry. I am reluctant to pay anyone a nonrefundable fee, especially in an environment where lending is so scare. They say it is standard practice. I have been quoted fees from $700 to $2500.
Is this common practice? Is anyone else getting loans done? We have excellent credit but are out of state investors which seems to be a hang up for local banks.
Thanks for your help!