Manufactured Housing Community Loan

Existing, stabilized, high-quality and professionally managed manufactured housing communities (MHCs), with or without age restrictions, excluding Seniors Housing properties.

Freddie Mac Multifamily Optigo lenders may originate or service an MHC loan — preferably with a staff that is experienced and knowledgeable in the structure, origination and delivery of MHC loans.

• 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.

Up to 5-, 7- and 10-year terms; longer term loans considered on a case-by-case basis.

$1 million or larger.

30 years.

Fixed- or floating-rate options are available; please refer to the Fixed-Rate Loan and Floating-Rate Loan term sheets for additional information.

Partial-term and full-term interest-only available; see table below and related footnotes.

Refer to the Fixed-Rate Loan and Floating-Rate Loan term sheets for additional information.

Non-recourse except for standard carve-out provisions.

Available, subject to the Supplemental Loan offering requirements.

Required.

Minimum $50/site/year

Greater of $2,000 or 0.1% of loan amount.

Early rate- and spread lock options available, typically ranging from 60 days to 120 days, including our early rate-lock and Index Lock options.

No Refinance Test is necessary if the loan has an amortizing debt coverage ratio (DCR) of 1.40x or greater and a loan-to value (LTV) ratio of 60% or less.

Within 12 months after loan origination, MHC Tenant Protections must be included in all leases, community rules and regulations, or other written agreements approved by the lender, with owners and renters of manufactured homes at the property, as applicable (see end of term sheet for further details).

• The property must have a minimum of five pad sites.
• 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.

AMORTIZING: 75% / 1.25x.
PARTIAL-TERM INTEREST-ONLY⁴: 75% / 1.25x.
FULL-TERM INTEREST-ONLY: 65% / 1.35x.

AMORTIZING: 80% / 1.25x.
PARTIAL-TERM INTEREST-ONLY⁴: 80% / 1.25x.
FULL-TERM INTEREST-ONLY: 65% / 1.35x.

AMORTIZING: 80% / 1.25x.
PARTIAL-TERM INTEREST-ONLY⁴: 80% / 1.25x.
FULL-TERM INTEREST-ONLY: 70% / 1.35x.