Fannie Mae Manufactured Housing Community Loans
Fannie Mae Manufactured Housing Community Loans have minimum amounts of $3 million and fixed- and variable-rate terms of up to 30 years.
Better Financing Starts with More Options$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get QuotesFannie Mae 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.)
To learn more, check out our official Fannie Mae Manufactured Housing Communities Product Sheet or keep reading below for an in-depth explanation of Fannie Mae’s Manufactured Housing Communities financing program.
Sample Fannie Mae Terms for Manufactured Housing Community Loans in 2023
Size: $3 million minimum loan amount
Terms: 5 to 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 LTV: 80%, 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 owner-occupied
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)