FANNIE MAE DUS®
Manufactured Housing Community Loans
Arbor’s Fannie Mae DUS Manufactured Housing Community (MHC) loans provide competitive pricing and flexible terms and function as a major source of liquidity for affordable housing community owners.
Minumum Loan Amount | $750,000 |
Loan Term | 5 to 30 years |
Amortization | Up to 30 years |
Minimum DSCR | 1.25x |
Maximum LTV | 80% |
Interest Rate | Fixed- and variable-rate options available |
Eligible Properties |
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Eligible Borrower | Single Asset Entity; At least one Key Principal of the Borrower should have experience in operating MHC |
Property Considerations |
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Escrows | Funding of tax and insurance escrows depends on leverage level; Replacement reserve escrow is typically not required |
Recourse |
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Third-Party Reports | Standard third-party reports required, including Appraisal, Property Condition Assessment and Phase I Environmental Site Assessment |
Third-Party Reports Cost Reimbursment | Fannie Mae will reimburse the cost of third-party reports up to $10,000 for Communities with Tenant Site Lease Protections implemented for at least 50% of the Sites, or if the community is owned by a non-profit entity. Minimum site lease protections must include:
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Prepayment Availability |
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Assumption | Mortgage loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience |
Supplemental Financing | Supplemental Mortgage Loans are available |
Rate Lock | 30- to 180-day commitments; Borrowers may use the Streamlined Rate Lock option |
Accrual | 30/360 and Actual/360 |
Minimum Underwritten Vacancy/Collection Loss | Minimum 5% economic vacancy assumption |
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