Manufactured Housing Communities Term Sheet

Provides financing options for manufactured housing communities where the Borrower owns the Manufactured Housing Community (MHC) sites and associated common amenities and infrastructure.

Competitive Advantage (PDF)


  • Customized solutions
  • Competitive pricing
  • Certainty of execution
  • Speed in processing and underwriting


  • Existing, stabilized, professionally managed MHC, with or without age restrictions, having a minimum of 50 pad 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 for participation


5 – 30 years.


Up to 30 years.

Interest Rate

Fixed- and variable-rate options available.

Maximum LTV


Minimum DSCR


Property Considerations

  • 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).
  • Tenant Site Lease Protections must be implemented on 100% of sites within one year of origination.

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 Mortgage Loans or graduated prepayment for variable-rate Mortgage Loans.

Rate Lock

30- to 180-day commitments. Borrowers may use 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. For loans with the pricing incentive for having minimum Tenant Site Lease protections, a Limited Payment Guaranty for 10% of the Mortgage Loan amount is required.


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.

Third Party Reports Cost Reimbursement

Fannie Mae will reimburse the cost of third party reports, up to $10,000, for Communities with Tenant Site Lease Protections implemented for at least 100% of the Sites, or if the community is owned by a non-profit entity. Minimum site lease protections must include:

(a) One-year renewable lease term for the site, unless good cause for nonrenewal;

(b) 30-day written notice of site rent increases;

(c) 5-day grace period for site rent payments, and right to cure defaults on site rent; and

(d) Rights of tenants to:

(i) sell the manufactured home without having to first relocate it out of the community;

(ii) sublease the home or assign the site lease to new buyer, so long as the new buyer meets the minimum MHC rules and regulations and the borrower’s credit standards for new tenants, consistent in the market;

(iii) post “for sale” signs that comply with the MHC rules and regulations;

(iv) sell the home in place within 45 days after eviction; and

(v) receive at least 60 days advance notice of any planned sale or closure of the community.


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 assumption.