Manufactured Housing Rental (MHR)
Fannie Mae Multifamily provides financing options for Manufactured Housing Communities (MHC) where the Borrower owns the MHC sites, associated common amenities, infrastructure and a higher-than-typical number of park-owned Manufactured Homes.
- 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 Borrowers should have experience in operating an MHC
- Lenders experienced in financing MHCs and approved by Fannie Mae for participation
- The Manufactured Housing Rentals Mortgage Loan must be originated concurrently with the associated MHC Site Mortgage Loan.
- The Manufactured Housing Rentals Mortgage Loan and the associated MHC Site Mortgage Loan must be cross-defaulted and cross-collateralized.
- The loan terms for the Manufactured Housing Rentals Mortgage Loan must be the same as the associated MHC Site Mortgage Loan, except as stated below.
5 – 30 years.
- Up to 30 years for Mortgage Loans covering pads portion of the deal.
- Manufactured Homes older than 5-years, but younger than 9-years: 10-year amortization.
- Manufactured Homes newer than 5-years: 20-year amortization.
Fixed- and variable- rate options available.
- No restriction on the percentage of tenant-occupied homes.
- 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.
- Additional pricing incentives available for non-traditional MHC ownership forms (e.g., non-profit, government entity, or resident owned).
- Additional pricing incentives available for Borrowers implementing Tenant Site Lease Protections.
Delivery and Securitization
- Pads and Coaches portion of the deal must be delivered as separate loans that are cross-collateralized and cross-defaulted.
- MBS may contain one or more loans, however, loans for pads and coaches cannot be mixed in a single MBS.
Supplemental Mortgage Loans are available.
Flexible prepayment options are available. Mortgage Loans may be voluntarily prepaid upon payment of yield maintenance or graduated prepayment premium for fixed-rate Mortgage Loans or graduated prepayment premium for variable-rate Mortgage Loans.
30- to 180-day commitments. Borrowers may Rate Lock using the Streamlined Rate Lock option.
30/360 or Actual/360.
Non-recourse execution with standard recourse 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 required.
Third Party Reports
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 Underwritten Vacancy/Collection Loss
Minimum 5% economic vacancy assumption.