MHP Loans in Michigan
Mobile home park loans in Michigan
Bridge financing for MHC acquisitions, value-add, and repositioning across Michigan. Direct balance sheet lender with operator-level underwriting.
Market Snapshot
Michigan MHP market
Key market indicators for manufactured housing communities in Michigan.
Market Overview
Manufactured housing in Michigan
Michigan has the second-highest concentration of private equity-owned mobile home parks in the nation, with 192 parks comprising over 50,600 home sites under institutional ownership. This level of institutional activity validates the asset class and demonstrates strong investor demand — while also creating opportunities for smaller operators to acquire parks that institutional buyers overlook.
The state's manufactured housing inventory is concentrated in the southern half of the Lower Peninsula, with significant clusters around Grand Rapids, Lansing, Kalamazoo, and the Detroit suburban ring. Michigan's economy has diversified beyond automotive into healthcare, technology, and advanced manufacturing, providing a more stable employment base than in previous decades.
Michigan MHP cap rates range from 7% to 9.5%, with value-add parks in secondary markets sometimes exceeding 10%. The state's affordability relative to coastal markets and its strong blue-collar employment base make it a consistent performer for manufactured housing investment.
Why Michigan
Why finance an MHP in Michigan
What makes Michigan a compelling market for manufactured housing community investment.
Second-highest PE ownership nationally
192 parks with 50,600+ sites are PE-owned in Michigan. This institutional validation confirms the asset class strength while creating opportunities — PE firms focus on large portfolios, leaving smaller parks available for independent operators.
Diversified economy beyond automotive
Michigan's economy has evolved significantly. Healthcare, technology, logistics, and advanced manufacturing now complement the traditional automotive sector, providing more stable employment fundamentals for MHP underwriting.
Strong cap rates
Michigan MHP cap rates of 7-9.5% offer attractive risk-adjusted returns. The combination of affordable entry points, strong rental demand, and limited new supply creates a compelling investment thesis.
Use Cases
What we finance
From straightforward park acquisitions to complex value-add repositioning with infill programs and infrastructure overhauls.
Park Acquisitions
Acquire manufactured housing communities that conventional lenders will not finance due to below-market operations, deferred maintenance, or park-owned home portfolios. We underwrite to the business plan, not just trailing income.
Value-Add Repositioning
Finance the acquisition and improvement of underperforming parks. Bridge capital covers the purchase while improvement holdbacks fund infrastructure upgrades, lot rent adjustments, and operational improvements.
Infrastructure Upgrades
Fund water and sewer system repairs, electrical upgrades, road improvements, and common area renovations. Draws released as work is completed and verified.
Lot Infill Programs
Finance the placement of new or used manufactured homes on vacant lots to increase occupancy and revenue. A vacant lot generating $0/month can produce $400-$600/month in lot rent once filled.
POH to TOH Conversion
Acquire parks with park-owned homes, then convert to tenant-owned over time. Bridge financing covers the initial acquisition including POH rental income in the underwrite, giving you runway to execute the conversion strategy.
Portfolio Consolidation
Combine multiple MHP acquisitions into a single bridge facility. One closing, one set of docs, streamlined execution for operators building a manufactured housing portfolio.
Deal Economics
How the numbers work
A representative value-add MHP acquisition showing how bridge financing enables the deal and creates equity.
Acquisition
Bridge Loan Structure
Stabilized (14 Months)
Representative example for illustrative purposes only. Actual deal economics vary based on market conditions, execution, and property specifics.
Regulations
Michigan MHP regulations
Key regulatory considerations for mobile home park owners and investors in Michigan.
Michigan Mobile Home Commission Act
Michigan regulates manufactured housing communities through the Mobile Home Commission Act (Act 96 of 1987). The act establishes licensing requirements for community operators and provides a framework for tenant rights.
Rent increase notice
Michigan requires 30 days written notice before lot rent increases for month-to-month tenancies. This shorter notice period allows faster execution of value-add business plans.
Conversion and closure protections
Michigan has tenant protections regarding park closures and conversions. Park owners must provide 12 months notice of intent to close and may be required to pay relocation costs. Factor this into any exit strategy analysis.
FAQ
Michigan MHP lending FAQ
Yes. We finance MHP acquisitions across the state, from metro Detroit to Grand Rapids, Lansing, Kalamazoo, and northern Michigan markets.
Michigan MHP cap rates range from 7% to 9.5%, with value-add parks in secondary markets sometimes exceeding 10%.
Michigan has the second-highest PE-owned park concentration nationally. This validates the asset class and drives professionalization. It also means well-priced smaller parks face less competition from institutional buyers who target larger portfolios.
Lot rents range from $350 to $500 per month, varying by market. Parks near Grand Rapids and Detroit suburbs tend to be higher.
Moderately. Michigan requires 30 days rent increase notice and has tenant protections regarding park closures. It is less restrictive than Northeastern states but has more protections than Southern states.
Grand Rapids, Lansing, Kalamazoo, the Detroit suburban ring, and Flint/Saginaw corridor.
We can close Michigan MHP acquisitions in as fast as 72 hours from signed term sheet.
See Also