FREDDIE MAC OPTIGO®
Manufactured Housing Community Loan
CUSTOMIZED LOANS FOR MANUFACTURED HOUSING COMMUNITIES
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ELIGIBLE PROPERTY TYPES
Existing, stabilized, high-quality, and professionally managed manufactured housing communities (MHCs), with or without age restrictions.
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ELIGIBLE BORROWERS
- The sponsor should have two or more years of experience in operating MHCs and should own one other MHC property.
- The borrower may be a limited partnership, corporation, limited liability company, or a tenancy in common (TIC) with 10 or fewer tenants in common. General partnerships, limited liability partnerships, real estate investment trusts (REITs) and certain trusts may also be acceptable in limited circumstances, subject to additional requirements.
- A borrower must be a Single Purpose Entity (SPE). On loans less than $5 million, a borrower other than a TIC may be a Single Asset Entity instead.
- If the borrower is a TIC, each TIC must be an SPE.
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TERMS
Up to 5-, 7-, and 10-year terms.
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AMOUNT
$1 million or larger.
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MAXIMUM AMORTIZATION
30 years.
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INTEREST RATE
Fixed- or floating-rate options are available.
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INTEREST ONLY
Partial-term and full-term interest-only available.
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PREPAYMENT PROVISIONS
Refer to the Fixed-Rate Loan and Floating-Rate Loan term sheets for additional information.
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RECOURSE REQUIREMENTS
Non-recourse except for standard carve-out provisions.
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SUPPLEMENTAL FINANCING
Available, subject to the Supplemental Loan offering requirements.
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TAX AND INSURANCE ESCROW
Required.
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REPLACEMENT RESERVE ESCROW
Minimum $50/site/year
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EARLY RATE AND SPREAD LOCK OPTIONS
Early rate- and spread lock options available, typically ranging from 60 days to 120 days, including our early rate-lock and Index Lock options.
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ADDITIONAL CONSIDERATIONS
- The percentage of homes owned by the borrower, borrower-affiliate, or third-party investor cannot exceed 25% in aggregate.
- Freddie Mac prefers all homes conform to the requirements of the Federal Manufactured Home Construction and Safety Standards Act of 1974 (HUD Code Standards).
- Private wells and septic systems are allowed with considerations.
- Leases cannot contain options to purchase pad site.
- Retail sales or financing by borrowing entity of any manufactured homes is not allowed.
- RV campgrounds and broken condominiums are excluded.
Fixed-Rate/Floating-Rate1 LTV Ratios and Amortizing2 DCRS
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FIXED-RATE BASE CONVENTIONAL MAXIMUM LTV AND MINIMUM DCR3
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ACQUISITIONS AND REFINANCES
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≥ 5-YEAR AND
< 7-YEAR TERMAMORTIZING: 75% / 1.25x.
PARTIAL-TERM INTEREST-ONLY4: 75% / 1.25x.
FULL-TERM INTEREST-ONLY: 65% / 1.35x. -
> 7-YEAR TERM
AMORTIZING: 80% / 1.25x.
PARTIAL-TERM INTEREST-ONLY4: 80% / 1.25x.
FULL-TERM INTEREST-ONLY: 70% / 1.35x.
1Floating-rate proceeds are calculated based on the comparable fixed note rate.
2The DCR calculated for the partial-term interest-only and full-term interest-only period used an amortizing payment.
3Adjustments may be required depending on the property, product and/or market.
4For partial-term interest-only loans, there must be a minimum amortization period of 5 years. Acquisition loans with a minimum of a 5-year term may have up to 1 year of partial-term interest-only. For terms of 10 years of more, loans have interest-only in an amount equal to no more than half of the loan term.
