Fannie Mae DUS® Manufactured Housing Property Lending Loan

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Non-recourse, fixed and adjustable rate financing for the acquisition or refinance of stabilized manufactured home communities where the Borrower owns the Manufactured Housing Community (MHC) sites and associated common amenities and infrastructure, and leases the individual pad sites to the owners of the manufactured homes.

Loan Amount
Minimum $1 million

Loan Term
5 – 30 years

Up to 30 years may be available for either age restricted communities or all age (family) communities

Interest Rate
Fixed and variable rate available.

Additional pricing incentives are available for Communities that implemented Tenant Site Lease Protections starting at 25% of the Sites with an increase in the incentive for Lease Protections on 50% of
the Sites, or are owned by a non-profit entity (see below for required lease protections).

Flexible prepayment options are available. Loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans and graduated prepayment for variable-rate loans.

Loan to Value Maximum
Maximum 80% of appraised value, or, if a property has been purchased within the past 12 months, 80% of lower of appraisal or purchase price (and up to 3% of closing costs) plus value added renovation

Coverage Minimum
1.25x fixed rate / 1.00x adjustable rate

Property Considerations*

  • Existing, stabilized, professionally managed MHC, with or without age restrictions, having a minimum of 50 sites.
  • Quality Level 3, 4, 5 communities.
  • The percentage of tenant-occupied homes generally may not exceed 25%. Up to 35% allowed
    under certain conditions.
  • Density is based on market norms. Preference is not exceed 12 Manufactured Homes per acre for an existing community and 7 Manufactured Homes per acre for a new community.
  • Homes should be professionally skirted with hitches removed or covered.
  • A completion escrow can be used to bring the park into compliance. Preference is for two off-street paved parking spaces. On-street parking is allowed if in compliance with prevailing market conditions subject to local ordinance.
  • Paved roads.
  • With limited exceptions, all Manufactured Homes should conform to applicable Manufactured Housing HUD Code standards.
  • Community must be served by underground public utilities or have a licensed private sewage treatment plant, septic system, or private water well.
  • Leases with 2-year terms or longer cannot contain a tenant option to purchase the site.
  • Further review is required if the property is in a flood zone.

*Note: Communities that do not meet all of the above characteristics will be considered on a case-by-case basis.