office 480.682.4501
fax 480.682.4517
BK-0910597
Fannie Mae now provides the same competitive financing for Manufactured Housing Communities (MHC) as it does for all other multifamily properties. All the benefits of the DUS product line, including attractive pricing, flexible terms, and extraordinary customer service, are now available to MHC borrowers. The MHC loan parameters are similar to Fannie Mae's standard DUS multifamily product, offering a choice of balloon and fully amortizing mortgages, early rate locks, supplemental mortgages, and proven reliable executions.
(For a Printable PDF of this program, please click here)
Eligibility Four or five star MHC's with 50% or more doublewide sites
Loan Amounts $2 million minimum. No maximum
Term/Amortization 5 to 30 year term. 25 year amortization (standard). 30 year amortization (qualifying properties)
Interest Rate Fixed or Adjustable
Debt service coverage ratio 1.25x minimum
Loan to value 75% maximum (fixed or ARM - standard) 80% maximum (fixed - with waiver) 77.5% maximum (ARM - with waiver)
Personal recourse Non-recourse with standard "Carve-Outs" and Key Principals obligations
Prepayment 1 year lockout with 1% minimum for the loan term (ARM); yield maintenance with 1% minimum or defeasance (fixed)
Origination Fee 1% / $20,000 minimum
Commitment Fee 2% (refundable)
Third Party Fees Includes legal, appraisal, engineering, and environmental reports. Seismic reports and survey may also be required
Minimum Occupancy Requirement 90% sustained for 90 consecutive days (85% acceptable for special circumstances)
Replacement reserve impounds Required - not less than $25/pad per year (waiver considered for special circumstances)
Taxes and Insurance Impounds Required (may be waived for low leverage transactions)
Assumability Assumable with lender approval and a 1% fee
Supplemental Mortgages Available after 1 year (up to two available, plus one more upon sale)
Venture Placement Fee 1% to 2% dependent on property