Non-Traditional Ownership Pricing Incentive
Our goal in supporting non-traditional ownership is maintaining Manufactured Housing Communities as an affordable source of housing for Americans throughout the U.S.
Why is Fannie Mae supporting non-traditional ownership of MHCs?
As part of our Duty to Serve plan, Fannie Mae developed a pricing incentive to assist in the acquisition of Manufactured Housing Communities (MHCs) by non-traditional owners, such as non-profit entities, and help develop new MHCs, preserve the affordability of existing communities, and provide funds to make improvements. Typically, these non-profit organizations can purchase an MHC through grants provided by city, county, and state governments, combined with low interest private loans. Our goal in supporting non-traditional ownership is maintaining Manufactured Housing Communities as an affordable source of housing for Americans throughout the U.S.
Who qualifies for the pricing incentive?
Fannie Mae’s new pricing incentive lowers financing costs and provides third-party report reimbursement for non-profit MHCs. To qualify for the pricing incentive, the Borrower must be a non-profit entity and meet the minimum Guide requirements for a Borrower, Key Principals, and Principals.
What are the benefits?
- A guaranty fee discount of 7.5 basis points;
- A servicing fee discount of 7.5 basis points; and
- Up to $10,000 in reimbursement for the cost of third-party reports (e.g., appraisal, Phase I Environmental Site Assessment)
For more information, contact:
- Jose Villarreal, MH Lead – Duty to Serve, at [email protected] or 312-368-6219;
- Greg Ehrhardt, MHC Financing, at [email protected] or 202-752-6489; or
- Emilio Allen, MHC Financing, at [email protected] or 202-752-6146.
If you have specific questions about the Duty to Serve program, please contact Jose Villareal. If you want to know more about MHC financing, please reach out to Greg and Emilio. Also, feel free to contact your Deal Team at any time.
Director, Lender Relationships