Fannie Mae Mobile Home Park Financing

Non-Recourse Fannie Mae Loans For Mobile Home Parks

Fannie Mae Mobile Home Park Financing Overview

In addition to home mortgage loans, Fannie Mae provides some of the very best multifamily loans in the nation at some of the most competitive mortgage rates anywhere. Fannie Mae now also includes mobile home parks in its multifamily loan program. Now developers and owners of mobile home parks can benefit from the flexible terms and low interest rates available with Fannie Mae Mobile Home Park Financing.

Fannie Mae mobile home park financing is underwritten and originated using the Fannie Mae DUS Multifamily Loan Program, which was created in 1989 to provide a consistent source of capital to developers and owners of multifamily projects seeking short- and long-term, fixed-rate, non-recourse financing. Fannie Mae instituted an underwriting and processing license arrangement with private mortgage brokers who would take “top end” risk on mortgage loans for the opportunity to underwrite and close loans without the pre-approval of Fannie Mae. Using this structure, Fannie Mae has built a network of bankers to originate, process, underwrite, commit, and close mortgage loans under a Fannie Mae guarantee of principal and interest payments to the mortgage investment market.

With the addition of Fannie Mae mobile home park financing to the DUS program, Fannie Mae is now providing tremendous liquidity to the mobile home park financing market. Please review the Fannie Mae mobile home park financing terms sheet below.

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Fannie Mae Loan Program Terms Sheet

Loan Program
Fannie Mae Mobile Home Park Financing
Loan Purposes
The Fannie Mae Mobile Home Park Financing program provides acquisition financing to purchase or refinance high quality mobile home parks with 50 or more home sites in all primary and secondary housing markets in all 50 states.
Eligible Properties
Mobile home parks and manufactured housing communities with 50 or more home sites.
Eligible Borrowers
Both for-profit and non-profit single asset entities are eligible.
Property Requirements
  • 50 home sites minimum
  • Paved roads are required
  • All homes in the community must be skirted
  • Trailer hitches cannot be visible
  • Additional community amenities strongly preferred
Minimum Loan Amount
Minimum loan amount $1 million
Maximum Loan Amount
Maximum loan amount is not a fixed dollar limit. Maximum loan is a function of loan to value ratio and debt service coverage ratio. of eligible development cost, including as-is value of land for new construction or as-is value of property in the case of substantial rehabilitation:

  • 83.33% for market rate apartments
  • 85% for affordable apartments
  • 87% for rent subsidized apartments

An amount that achieves minimum Debt Service Coverage Ratio of

  • 1.20×1 DSCR for market rate apartments
  • 1.18×1 DSCR for affordable apartments
  • 1.15×1 DSCR for rent subsidized apartments

Loan cannot exceed the programmatic per-unit maximum as adjusted by HUD for project location (local high cost factor).

Loan Term
Fully amortizing for a term of up to 35 years.
Amortization Term
Fully amortizing up to 35 years.
Loan To Value Ratio
  • 83.33% for market rate apartments.
  • 85% for affordable apartments.
  • 87% for rent subsidized apartments.
Debt Coverage Ratio
  • 1.20×1 for market rate apartments.
  • 1.18×1 for affordable apartments.
  • 1.15×1 for apartments with rental assistance.
Prepayment Terms
Negotiable with best pricing for 10 years of call protection (can be a combination of lockout and/or penalty); loan is fully assumable subject to HUD approval.
Personal Liability
FHA apartment loans are non-recourse, with standard carve-outs.
Escrow Requirements
  • Replacement reserves required in accordance with HUD guidelines, minimum $250 per unit per year;
  • Taxes and Insurance escrowed monthly;
Third Party Reports
  • Appraisal
  • Phase One Environmental Assessment (ESA)
  • Market Study (may be required in declining markets)
HUD/FHA Application Fee
30 basis points ($3 per $1,000) of requested loan amount (due with submission of firm application)
Mortgage Insurance Premium
1% due to HUD at closing and 0.6% annually thereafter, escrowed monthly (.45% for affordable properties and those with at least one unit under project-based Section 8 HAP contract)
Loan Timeline
  • Firm application typically submitted within 45-60 days of engagement; then
  • Firm Commitment is typically issued within 60 days; then
  • Closing normally occurs 30-45 days thereafter
Additional Parameters
  • Certificates of Occupancy dated three years prior to date of application (subject to waiver)
  • Pre-review is not required by HUD
  • Davis Bacon prevailing wage requirements do not apply
  • A replacement reserve will be funded at closing
  • Annual audit of operations is required
  • Hard second liens not allowed, soft seconds & stock pledge financing allowed with proper structure

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Fannie Mae Mobile Home Park Financing Key Takeaways

  • Fannie Mae mobile home park loans provide borrowers with 10 year, fixed rate, non-recourse financing.
  • Loans can be used to finance the acquisition or refinancing of existing, high quality mobile home parks.
  • Eligible properties have minimum of 50 pad sites and paved roads, homes must be skirted, towing hitches cannot be visible.
  • Minimum loan amount $1,000,000 with no maximum loan amount.
  • Loan terms up to 10 years with 30 year amortization.
  • Fannie Mae mobile home park financing is non-recourse to the borrower.

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