* Purchase or Refinance of 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.
Loan Amount: $1.3 Million - $100 Million
Rate: 4.25% - 6.75%
Term: 10 years
Amortization: 30 years for age restricted or family communities
LTV: 80% of appraised value if purchased within the past 12 months
Purchase LTV: 80% of lower of appraisal or purchase price + 3% of closing cost) + renovation
Fees: NO upfront fees for underwriting and pricing of the loan
NO application fee
NO 3rd party fees (such as appraisals) until borrower signs FHA-HUD, Fannie Mae or Freddie Mac term sheet
1) Must have been on title for 2+ years for similare 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 score
4) No bankruptcy, foreclosure or short sales in the last 3 years
5) Borrower: single asset LLC, Corporation or Partnership
Occupancy: 90% consecutive occupancy for the past 90 days
Borrower may take surplus cash distributions from operating account anytime
Pricing incentive for communities with tenant site lease protections for 25% of sites; increased incentive for lease protections for 50% of Sites or owned by non-profit entity.
Flexible prepayment optionsProperty considerations*
* 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+ years
* 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
d) Rights of tenants to:
1) Sell mobile home without having to relocate it out of the community
2) Sublease home or assign site lease to new buyer who meets minimum MHC rules, regulations and borrowes credit standards for new tenants, consistant in the market.
3) Post "For Sale" signs that comply with MHC rules and regulations
4) Sell home in place within 45 days after eviction; and
5) 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.
Recourse: Non-Recourse with standard carve-outs
Vacancy: Minimum 5% economic vacancy assumption
Fees: NO UPFRONT FEES