Loans and Insurance for RV Park Deeded Lot

[Labauer]

We have a contract on a rv site being built in a new rv park.  The lot will be deeded.  Thought financing would be easy through a conventional loan.  Not the case.  Since the land will be “developed” with amenities but not sticks/brick house we can’t find a lender that has any financing for this situation.  The same thing with finding insurance for the site.  Has anyone faced this problem when buying into a deeded lot rv park?  How did you finance?  How did you insure?  Any recommendations of lenders and insurance companies?  Thank you

[k4rs]

We ran into a similar situation when we bought our first lot.  No luck with any of the big banks, so we applied with a small bank in the community where we were purchasing.  The loan was approved in a couple of hours.

As for insurance, we had our full timer policy on the 5th wheel, but no additional coverage for the lot.  Later when we put a park model on the lot, we obtained a regular home owners policy.

Safe Travels...

[Labauer]

Thank you for the response.  Was your first lot in a park where amenities were built on the lot like an outdoor kitchen, etc.?  So far even local banks won’t finance because it’s not a vacant lot which could be built up at one time.  HOA requires insurance to cover everything on the lot from cement pads to firepit to palapa to kitchen as those item will belong to us not the HOA and we will be responsible for damages and liability.

[Kirk W]

Can the HOA tell you what others have done? I would think that the sales people would know the answers to financing and insurance as others must have run into the same problems.

[Labauer]

Unfortunately HOA is not established yet as the rv park is being built.  The broker doesn’t have any referrals other that the commercial lender who is offering financing because they are financing the build.  It’s not the best deal so we are looking for something else.  Have let the broker know of our search and the only other referral was to the two local banks on the island.  She’s the one who filled out contract with 30 year conventional loan financing so it appears she doesn’t understand the rv park and lot builds.

[Kirk W]

How big is this project, as you must not be the only person who has these questions? I suggest that any purchase offer should be contingent upon resolution of the problems that you are having? How is the HOA requiring things if it has not been established yet? It sounds as though this project isn't likely to end well so I hope that you haven't given them any money yet.

[docj]

18 hours ago, k4rs said:

We ran into a similar situation when we bought our first lot.  No luck with any of the big banks, so we applied with a small bank in the community where we were purchasing.  The loan was approved in a couple of hours.

As for insurance, we had our full timer policy on the 5th wheel, but no additional coverage for the lot.  Later when we put a park model on the lot, we obtained a regular home owners policy.

Six years ago we purchased our lot at a park in Rockport TX.  We have fee simple ownership of the property and have erected a 2-section structure--a heated/cooled sewing center and a storage shed.   The park's developer had arranged for financing through a local community bank.   We started with a 3-year term note and then converted that to a fully amortized one.

As for insurance, that turned out to be more complex than I had thought.  Fortunately, Roxanne at Miller Insurance was able to come up with a package that works for us.  We have full-timers insurance from Progressive that provides adequate protection when the motorhome is present, but I wanted coverage for liability, structure and contents when we are away.  Roxanne arranged that.

[Labauer]

Great info.!  Thank you.  Did you convert the 3 year loan through the same bank?  When you say fully amortized does that mean a conventional loan?  Is Roxanne local in Rockport or through Mille Insurance nationally?

[Labauer]

KirkW….The builders already set up the HOA Declarations which, in my past experience buying condos/houses in new developments, they are required to do to establish rules including voting rights, when development is turned over to homeowners, etc. because the builder is in charge until there is either a majority or all units are sold.  Right now 12 of the 37 units are under contract and 4 more are pending a contract.

[k4rs]

18 hours ago, Labauer said:

Thank you for the response.  Was your first lot in a park where amenities were built on the lot like an outdoor kitchen, etc.?  

Our lot had a concrete slab and a 10x10 storage shed, nothing else.

Safe Travels...