Mobile Home Note Buyers

I’ve found that it’s getting harder and harder to find note buyers for my used mobile home deals. All the big guys have bailed out and are no longer buying mobile home notes, expecially when they are on rented land.

I did find one private investor who is still buying notes.



To what do you attribute this decline? In which state are you located? Do you think this is a local phenomen or nationwide? The reason that I ask these questions is that I am in the process of looking for a MH to put on a property that I bought and use it as a rental property. If there is going to be a problem selling it later, I might need to rethink and build a house in its place.



You should be OK if you’re putting a mobile home on your own land. BE SURE to put it on a foundation. This way the MH will be considered real estate instead of personal property. You’ll be able to qualify for interest rates that are comparable to stick built houses and your investment will appreciate.

Mobile homes that are in parks must get Chattel Mortgages. They are personal property. The interest charged can be more than double the real estate rates. Financing is hard to come by because the note buyers realize the risk is very high. In fact if the MH is more than 12 years old, only a handul of private investors are buying these notes from the dealers.

The notes are discounted to yield a 35-40% yield.
The private investors have to work hard to collect on these notes. Many parks are being sold to land developers. The residents are being asked to move their homes. Many note payers are just walking away from their MH’s, leaving the Investor to try to repo a depreciating asset, which is worth almost nothing on the wholesale market. This is why the big lenders have exited the market.

I know of only two private lenders still doing this. One of them told me his likes to gamble at the casinos and buy mobile home notes.

Although their are probably more private lenders out there.


I am from South Africa and I am wondering if it is worth while to buy a M/H or better to get a house to rent. Please let me know cause my work is thinking about sending me to minisota.

Who is buying mobile home notes and what are the terms? Arnold