Fannie Mae Multifamily provides financing options for manufactured housing communities where the Borrower owns the Manufactured Housing Community (MHC) sites and associated common amenities and infrastructure, and leases the individual pad sites to the owners of the manufactured homes.
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Loan Amount: Starting at $1 million
Loan Purpose: Acquisition or refinance, including cash-out refinance
Eligibility:
Existing, stabilized, professionally managed MHC, with or without age restrictions, having a minimum of 50 sites
Quality Level 3, 4, or 5 communities
At least one Key Principal of the Borrower should have experience in operating MHC
Lenders experienced in financing MHC and approved by Fannie Mae
Loan Terms: Fixed and variable-rate options are available. Choose from a 5, 7, 10, 12, 15 or 30-year fixed rate.
Amortization: 30 years
Property Considerations:
Additional pricing incentive is available for Communities that implemented Tenant Site Lease Protections for at least 25% of the Sites, or are owned by a non-profit entity.
The percentage of tenant-occupied homes generally may not exceed 25%.
Density is based on market norms and generally should not exceed 12 Manufactured Homes per acre for an existing community and 7 Manufactured Homes per acre for a new community.
With limited exceptions, all Manufactured Homes should conform to applicable Manufactured Housing HUD Code standards.
Leases with 2-year terms or longer cannot contain a tenant option to purchase the site.
Recourse: Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.
Subordinate Financing: Supplemental mortgages are available after the first 12 months of the loan term or loan assumption
Escrows: Funding of tax and insurance escrows depend on leverage level. Replacement reserve escrow is typically not required.
Prepayment: Flexible prepayment options are available. Loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans and graduated prepayment for variable-rate loans.