Manufactured Housing Communities (MHC)

• 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.

5 – 30 years.

Up to 30 years

Fixed- and variable-rate options available.

80%.

1.25x.

• MHC may be either age-restricted or all age (family community).
• The percentage of tenant-occupied homes generally may not exceed 35%.
• 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 pad site.
• Additional pricing incentives available for non-traditional MHC ownership forms (e.g., non-profit, government entity, or resident owned): https://multifamily.fanniemae.com/financing-options/specialty-financing/non-traditional-ownership.

Supplemental Mortgage loans are available.

Flexible prepayment options are available. Mortgage Loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans and graduated prepayment for variable-rate Mortgage loans.

30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.

30/360 and Actual/360.

Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.

Funding of tax and insurance escrows depend on leverage level. Replacement reserve escrow is typically not required.

Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.

Mortgage Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.

Minimum 5% economic vacancy assumption.