Mobile Home Park Loan
Fannie Mae and Freddie Mac
Finance purchase or refinance stabilized mobile home parks
Borrower must own the Manufactured Housing Community (MHC) sites, associated common amenities, infrastructure and lease the pad sites to mobile home owners
$1.3 Million+ to $100 Million
4.25% to 6.75%
Term: 10 years
Amortization: 30 years for age restricted or family communities
Refinance 80% of appraised value if purchased within past 12 months
Finance purchase at 80% of lower of appraisal or purchase price + 3% of closing costs) + renovation
No upfront fees underwriting pricing and sizing loans; no application or 3rd party fees (such as appraisals) until borrower signs FHA-Hud, Fannie Mae or Freddie Mac terms sheet
(1) Must have been on title for 2+ years for similar sized & multifamily project(s) last 3 years; at least one key principal should have experience operating MHC’s.
(2) Liquidity must cover “cash to close” (combined all key principals)
(3) 660+ credit
(4) No bankruptcy, foreclosure or short sales in last 3 years
(5) Borrower: single asset LLC, Corporation or Partnership
Occupancy requirements: 90% consecutive occupancy for 90 days
Borrower may take surplus cash distributions from operating account anytime
Pricing incentives for communities with tenant site lease protections for 25% of sites; increased incentive for lease protections for 50% of Sites or owned by a non-profit entity (see below for required lease protections).
Flexible prepayment options
- Existing, stabilized, professionally managed MHC with or without age restrictions
- 50+ sites
- Quality level: 3, 4, 5 communities.
- Tenant-occupied homes not to exceed 25% (35% under certain conditions)
- Density not to exceed 12 mobile homes per acre for an existing community and 7 mobile homes per acre for a new community.
- Homes professionally skirted with hitches removed or covered.
- Completion escrow can be used to bring park into compliance.
- Prefer 2 off-street paved parking spaces. On-street parking subject to local ordinance.
- Paved roads.
- Mobile homes should conform to applicable Manufactured Housing HUD Code standards.
- Community must have underground public utilities or licensed private sewage treatment plant, septic system or private water well.
- Leases 2+ year term
- No tenant options to purchase site.
- Further review if in flood zone.
*Note: Communities not meeting above considered case-by-case.
Required 3rd party reports: MAI appraisal, property condition assessment and Environmental Phase I; Fannie Mae reimburses cost of third-party reports up to $10,000 for communities with tenant site lease protections for 50%+ of sites or if owned by a non-profit entity.
Minimum site lease protections must include:
(a) 1-year renewable lease term for site, unless good cause for nonrenewal;
(b) 30-day written notice of site rent increases;
(c) 5-day grace period for site rent payments and right to cure defaults on site rent
(d) Rights of tenants to:
(i) Sell mobile home without having to relocate it out of the community;
(ii) Sublease home or assign site lease to new buyer who meets minimum MHC rules, regulations and borrower’s credit standards for new tenants, consistent in the market;
(iii) Post “for sale” signs that comply with MHC rules and regulations;
(iv) Sell home in place within 45 days after eviction; and
(v) Receive at least 60 days advance notice of planned sale or closure of community.
Tax & insurance escrows depend on leverage level.
Replacement reserve escrow not required.
Application Fee: $15,000 for 3rd party reports and processing/underwriting costs
Rate Lock after 30 to 180 day commitment; may use Streamlined Rate lock option.
Non-recourse with standard carve-outs for “bad acts” such as fraud and bankruptcy. For loans with pricing incentive for having minimum tenant site lease protections, a limited payment guaranty for 10% of mortgage loan amount required.
Assumable subject to review and approval of new borrower’s financial capacity and experience.
Supplemental Financing available one-year after loan origination
Minimum 5% economic vacancy assumption.
No upfront Eagle fees. We are paid when your loan is funded at closing.
Eagle is a correspondent lender for largest FHA-HUD Commercial Lender in the USA. We close more than half of all FHA-HUD Commercial loans and rank in the top 10 for Fannie Mae and Freddie Mac.
To get started, please click blue Mobile Home Loan link for your FREE PRE APPROVAL LOI within 48 business hours. With a few clicks of your mouse it TAKES LESS THAN 6 MINUTES to submit your online loan request. No upfront fees, credit cards, Social Security Numbers or credit checks required.