Fannie Mae Manufactured Housing Community Loan Overview
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GSE Loan Program |
Fannie Mae Manufactured Housing Community Loans Program | Mobile Home Park Loans |
Eligible Properties |
Professionally operated and managed, stabilized, existing manufactured housing communities or mobile home parks with at least 50 home/pad sites that are rated at least Four Star that have had 90% or better occupancy for the preceding 3-month period. |
Eligible Borrowers |
For-profit individuals and entities and not-for-profit single asset entities. |
Eligible Locations |
Mobile home park loans and manufactured housing community loans are available nationwide in both primary and secondary housing markets; tertiary markets will be considered. |
Minimum Loan Amount |
Manufactured housing/mobile home park loans have a $1,000,000 minimum loan amount per Fannie Mae charter, but loans of $3 million and up are preferred. |
Maximum Loan Amount |
Manufactured housing/mobile home park loans have no statutory maximum loan amount. Maximum loan amounts are determined by loan to value ratio (LTV) and and debt service coverage ratio (DSCR) of 1.00x debt service for adjustable rate loans using the sum of the note rate plus either 3% or the lifetime cap, whichever is greater, or 1.25x debt service coverage for fixed-rate loans. |
Loan Term |
Manufactured housing/mobile home park loan terms rang from 5 to 30 years. |
Amortization Term |
25 or 30 year amortization is standard, depending on property age, with balloon payment terms of 5, 7, 10, 15, 18 years or full term loans of 20 years, 25 years or 30 years. |
Loan to Value Ratio |
Maximum loan to value ratio for manufactured housing community loans is limited to 80.0% of appraised value. |
Required DSCR or DCR |
1.25 X minimum debt service coverage ratio (DSCR) for fixed-rate loans or 1.00x debt service for adjustable rate loans using the sum of the note rate plus either 3% or the lifetime cap, whichever is greater. |
Interest Rate |
Market interest rates change daily. Visit our Interest Rates page or call for quote. |
Loan Origination Fee |
Negotiable, but generally based on property condition and strength of borrower. |
Interest Only |
Interest only repayment terms are available for a portion of the loan term. |
Interest Accrual |
Either actual/360 or 30/360 are acceptable. |
Prepayment |
All Fannie Mae manufactured housing community loans or mobile home park loans are subject to a prepayment penalty calculated using either a yield maintenance or defeasance formula for all but the last six months of the term of the loan. Loan terms can be modified by adjusting the interest rate. |
Personal Liability |
Fannie Mae manufactured housing community loans or mobile home park loans are non-recourse as to the borrower for most loans, subject to standard carve-outs. |
Loan Assumption |
All Fannie Mae loans are assumable, subject to lender approval and payment of 1% assumption/transfer fee. |
Supplemental Financing |
Fannie Mae manufactured housing community loans or mobile home park loans permit supplemental loans beginning 12 months from date of closing of first loan. |
Interest Rate Lock |
Fannie Mae issues and interest rate lock at commitment and extended rate lock up to six months is available. |
Escrows |
Escrows for the payment of taxes and insurance are required with all Fannie Mae manufactured housing community or mobile home park loans. |
Replacement Reserves |
Reserves for replacement are required at $25 per pad/year, but the requirement may be waived for mobile home parks in above average condition as determined by the underwriter. |
Minimum Occupancy |
85% minimum occupancy required |
PropertyRequirements |
- Project must have 50 pads minimum
- Minimum of 95% tenant owned homes
- Prefer more than 50% double-wide homes
- Community streets must be paved
- Off-street community and visitor parking required
- Homes must be fully skirted
- Hitches and jack posts must be concealed
- Additional community amenities preferred but not required
- Homes should conform to applicable manufactured housing HUD Code standards
- Leases with residents cannot contain an option to purchase pad sites
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Preliminary Submission Package |
- Location map and property description and photos (or website info)
- Unit mix showing type, number, size, and current rent of all units
- Description of commercial space if any
- Last three months rent rolls along with year-to-date financial statements
- Last full 36 month operating statements or pro-forma if recently completed construction
- Business resume and financial statement of principals and entity
- Terms of existing debt if any
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Important Pages |
You should find these related pages helpful:
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