Manufactured Housing Loans
Manufactured Housing Community Mortgages
Commercial Loan Direct's MAH product provides flexible terms for projects nationwide which qualify as Manufactured Housing properties.
- Loan Amount: Generally $2,000,000 and up
Loan Term: 5, 7, 10, 15, 18, 20, 25, and 30 years - Amortization: Up to 25 years, 30 years may be available on a waiver basis
- Prepayment: Yield maintenance period is required with a minimum of 1% prepayment fee. (Prepayment terms, yield maintenance requirements and prepayment premiums are specified by Fannie Mae and can vary by transaction and by mortgage term)
- Features: Non-Recourse, with the exception of standard carve-outs for Borrower’s inappropriate acts such as fraud and transfer without approval
- Assumable: Yes
- Fixed Interest Rate (variable rate options also available)
- Supplemental Loan(s) permitted after one year from closing
- Property Requirements: Manufactured Housing Communities consisting of land and infrastructures: homes sites, paved streets, private utility lines and common areas. The Community shall have a minimum of 50 sites, 50% of which should accommodate double-wide homes. All Homes shall have concrete patios or commercial grade raised porches/ cabanas. All Homes shall be professionally skirted. Maximum density shall not exceed 10 Homes per acre. 100% of all hitches/jack posts must be concealed. The ratio of tenant-occupied Homes to owner-occupied Homes cannot exceed 5%. The ratio of tenant-occupied Homes owned by Borrower to tenant-occupied Homes owned by other Persons cannot exceed 50%. Amenity packages, landscaping and entrance signage must be well maintained and competitive in the market place. Evidence that new homes are being placed in the Community as sites are vacated further demonstrating the Community’s ongoing economic viability
- Application Fee/Closing Costs: Generally $15,000 (non-refundable). Includes Architectural/Engineering Report, Phase I Environmental Report, Appraisal Report and Property Inspection. All third party reports must be contracted by Lender
- Pricing: Fees and interest rates are quoted daily. Contact Commercial Loan Direct for specific pricing.
- Minimum Occupancy: 90% occupied for the 3 months immediately preceding Loan Commitment. Occupancies between 85%-90% are eligible, subject to approval.
- Borrower: Single Asset, Single Purpose Entities (some exceptions permitted)
- Sponsor and management must have demonstrated success in this property type.
- Impounds and Reserves: Real Estate Taxes, Insurance and Replacement Reserve impounds required; waivers available for lower leveraged loans. Seasonal reserves may be required.
In its prequalifying review, Commercial Loan Direct will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.
Get a manufactured housing community loan quote