Fannie Mae Financing for Manufactured Housing Communities 

Fannie Mae Insured Loans for Manufactured Housing Communities and Mobile Home Parks 

It can often be challenging to get affordable financing for manufactured housing and mobile home communities-- but the Fannie Mae Manufactured Housing Community Loan can often do the trick. Fannie Mae Manufactured Housing Community Loans have a minimum loan amount of $3 million, and fixed and variable-rate loan terms of up to 30 years. Plus, Fannie Mae Manufactured Housing Community Loans have an LTV allowance up to 80% (75% for refinances), are non-recourse, and are fully assumable (with lender approval and a 1% fee.) 



Sample Fannie Mae Terms For Manufactured Housing Community Loans

Size:  $3 million minimum loan amount 

Terms:  5-30 years 

Use:  Acquisition or refinance 

Amortization:  Up to 30 years, interest-only options may be available 

Interest Rates: Fixed and variable-rate options available

Maximum LTV80%, 75% for cash-out refinancing 

Minimum DSCR 1.25x 

Recourse:  Loans are non-recourse with standard “bad boy” carve-outs 

Prepayment Options:  Yield maintenance or declining prepayment premiums

Occupancy Requirements: 90% physical occupancy, no more than 5% can be non-owner occupied

Eligible Borrowers:  Borrowers typically need to be single asset U.S. entities. At least one principal should have experience owning and operating manufactured housing communities. 

Eligible Properties: 

  • Properties must have at least 50 pad sites 
  • 50% or more of sites must be double-wide 
  • 3-5 star property rating required 
  • No more than 25% of homes can be occupied by tenants
  • Density must not typically be beyond 12 homes per acre (for established communities), or 7 homes per acre (for new communities) 
  • Leases 2 years or longer must not come with a purchase option

Advantages:

  • Competitive interest rates 
  • Loans are non-recourse 
  • 30- 180 day rate locks available (streamlined rate locks also available) 
  • Supplemental financing permitted after 12 months 
  • Commercial space is allowed 

Disadvantages:

  • Requires third-party reports including an Appraisal, Property Condition Assessment, and a Phase I Environmental Assessment   
  • Requires replacement reserves (minimum of $250/unit per year) 
  • $12,500 application deposit and $3,000 processing fee required 
  • 1% minimum origination fee also required 
  • 2% good faith deposit required 
  • Replacement reserves required ($50 minimum per pad site/year)