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FREDDIE MAC OPTIGO®

Manufactured Housing Resident Owned Community Loan (MHROC)

CUSTOMIZED LOANS FOR MANUFACTURED HOUSING COMMUNITIES OWNED BY RESIDENTS

  • ELIGIBLE PROPERTY TYPES

    Existing, stabilized, high-quality, professionally managed MHROCs, with or without age restrictions.

  • ELIGIBLE TRANSACTION TYPES
    • Acquisition/Conversion: An Acquisition Mortgage on a Manufactured Housing Community which is in the process of converting from a rental property to an MHROC. The MHROC Borrower must be formed prior to rate lock.
    • Seasoned Refinance: A Refinance Mortgage on an existing MHROC with most shares already sold to resident shareholders.
  • ELIGIBLE BORROWERS

    Not-for-profit cooperative corporation or association (Co-op) in which shares in the Co-op are sold to shareholders and such shares entitle the shareholder to occupy a specific pad.

  • REQUIREMENTS FOR RESIDENT SHAREHOLDERS

    At rate-lock:

    • 100% of pads must be owned by the MHROC Borrower.
    • At least 90% of shares must be owned by resident-shareholders.

    Seasoned Refinances offer flexibility on this point with alternate sizing.

  • DEBT SERVICE RESERVE

    May be required.

  • TERMS

    5- to 30-year terms.

  • MINIMUM UPB AMOUNT

    $1,000,000.

  • MAXIMUM AMORTIZATION

    30 years.

  • INTEREST RATE

    Fixed-rate only.

  • INTEREST ONLY

    Amortizing only, Interest only not permitted.

  • RECOURSE REQUIREMENTS

    Non-recourse.

  • SUPPLEMENTAL FINANCING

    Available, subject to the Supplemental Loan offering requirements.

  • HOME RENTALS

    The percentage of homes owned by the borrower, borrower-affiliate, or third-party investor cannot exceed 5%.

  • TAX AND INSURANCE ESCROW

    Required.

  • REPLACEMENT RESERVE ESCROW

    Minimum $50 per site per year and $250 for borrower-owned manufactured home per year.

  • ADDITIONAL CONSIDERATIONS
    • Private facilities (e.g., wells and septic systems) are allowed with considerations.
    • Rental leases cannot contain options to purchase pad sites or borrower-owned manufactured homes.
    • Retail sales or financing by borrowing entity of any manufactured homes or shares in the MHROC Borrower is not allowed.
    • RV campgrounds and broken condominiums are excluded.
    • Wrap financing, seller financing, mezzanine financing, and preferred equity are not permitted.

Fixed-Rate LTV Ratios and Amortizing DCRs1

  • FIXED-RATE BASE CONVENTIONAL MAXIMUM LTV AND MINIMUM DCR (ALL AMORTIZING)
  • AS MARKET RATE RENTAL2

    ACQUISITIONS/CONVERSIONS: 70% / 1.40x.
    SEASONED REFINANCES: 70% / 1.40x.

  • AS COOPERATIVE3

    ACQUISITIONS/CONVERSIONS: NA / 1.15x.
    SEASONED REFINANCES: NA / 1.10x.

1Adjustments to DCRs and LTVs may be required depending on the property, product and/or market.
2‘As market rate rental’ – income and expenses underwritten as a conventional rental property operation.

3‘As cooperative’ – income and expenses underwritten as a resident-owned cooperative (as-is).

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