FANNIE MAE DUS®
Manufactured Housing Communities (MHC)
BENEFITS
- Customized solutions.
- Competitive pricing.
- Certainty of execution.
- Speed in processing, underwriting, and closing.
-
ELIGIBILITY
- Existing, stabilized, professionally managed MHCs, with or without age restrictions, having a minimum of 50 sites.
- Quality Level 3-, 4-, or 5-star communities.
- At least one Key Principal of the Borrower should have experience in operating MHC.
-
TERM
5 – 30 years.
-
AMORTIZATION
Up to 30 years. Interest-only options available.
-
INTEREST RATE
Fixed- and variable-rate options available.
-
MAXIMUM LTV
80%.
-
MINIMUM DSCR
1.25x.
-
PROPERTY CONSIDERATIONS
- MHC may be either age-restricted or all age (family community).
- Density is based on market norms and generally should not exceed 12 Manufactured Homes per acre for an existing community.
- With limited exceptions, all Manufactured Homes should conform to applicable Manufactured Housing HUD Code standards.
-
SUPPLEMENTAL FINANCING
Supplemental Mortgage loans are available.
-
PREPAYMENT AVAILABILITY
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.
-
RATE LOCK
30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.
-
RECOURSE
Non-recourse execution with standard carve-outs.
-
ESCROWS
Funding of tax and insurance escrows depend on leverage level. Replacement reserve escrow is typically not required.
-
THIRD-PARTY REPORTS
Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.
-
ASSUMPTION
Mortgage Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
-
MINIMUM UNDERWRITTEN VACANCY / COLLECTION LOSS
Minimum 5% economic vacancy.
