Interest Rates for Mobile Home Communities

Mobile Home Park Financing

Sample Interest Rates for Mobile Home Communities/Parks:  As of April 28, 2021


Mobile Home Community – Mobile Home Parks:
$1 Million to < $6 Million

Over $6 Million

Tier 2 Tier 3 Tier 4 Tier 2 tier 3 Tier 4
5-yr Fixed 4.56% 4.31% 4.11% 3.62% 3.47% 3.27%
7-yr Fixed 4.57% 4.32% 4.12% 3.68% 3.53% 3.33%
10-yr Fixed 4.73% 4.43% 4.28% 3.88% 3.73% 3.53%
15-yr Fixed call for details 3.96% 3.81% 3.61%
30-yr Fixed call for details 4.48% 4.33% 4.13%
  • Tier 2: 66% – 80% 80% LTV Purchase: 75% LTV refinance Min DSCR 1.25x
  • Tier 3: 56% – 65% LTV; minimum DSCR 1.35x
  • Tier 4: 55% LTV or below, Minimum DSCR 1.55x

Term 5 – 30 years.

Amortization Up to 30 years.  Interest Only is an option.

Interest Rate: Fixed- and variable-rate options available.  Call for variable rates.

Maximum LTV 80% purchase and no cash out refinancing cash out 75% Max LTV.

Minimum DSCR 1.25x.

Property Considerations:

  • MHC may be either age-restricted or all age (family community).
  • The percentage of tenant-occupied homes generally may not exceed 35%.
  • Density is based on market norms and generally should not exceed 12 Manufactured Homes per acre for an existing community and 7 Manufactured Homes per acre for a new community.
  • With limited exceptions, all Manufactured Homes should conform to applicable Manufactured Housing HUD Code standards.
  • Leases with 2-year terms or longer cannot contain a tenant option to purchase the pad site.
  • Additional pricing incentives available for non-traditional MHC ownership forms (e.g., non-profit, government entity, or resident owned).
  • Additional pricing incentives available for Borrowers implementing Tenant Site Lease Protections:
    • Tenant Site Lease Protections (TSLPs) serve to preserve the affordability and stability of Manufactured Housing Communities (MHCs) across the country. In a Manufactured Housing Community, residents typically own the manufactured home in which they reside. However, the property, or “site”, on which the manufactured home sits is rented from the MHC by the owner of the manufactured home.
    • Tenant Site Lease Protections afford tenants of MHCs certain rights in areas where state law does not already provide mandatory tenant protections. Under the Duty to Serve Rule, FHFA has outlined specific protections that would afford tenants of Manufactured Housing Communities additional rights in states where they are not mandatory. These protections address site lease terms, rent increases, rent payments, unit sale and sublease rights, and notice of a planned sale or closure of the MHC.
  • What are the required protections?
    • Fannie Mae provides a pricing incentive for Borrowers who implement allof the following protections at the MHC for tenant site leases:
      • One-year renewable term for the site lease;
      • 30-day written notice of rent increases;
      • 5-day grace period for late rent payments;
      • Rights of the tenant of a site lease to:
        • Sell the manufactured home without having to move it out of the MHC;
        • Sublease the manufactured home or assign the site lease to a buyer, provided the buyer meets the minimum MHC rules and regulations and credit quality for financing;
        • Post “for sale” signs on the manufactured home, provided the signage complies with the MHC rules and regulations;
        • Sell the manufactured home in place within 45 days after eviction; and
        • Receive at least 60 days’ notice of any planned sale or closure of the MHC.

Supplemental Financing:  After the first year call for details.

Prepayment Availability: Call for options and details

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

Rate Lock: 30- to 180-day commitments. Borrowers may use the Streamlined Rate Lock option.

Accrual: 30/360 and Actual/360.


  • Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy. For loans with the pricing incentive for having minimum Tenant Site Lease protections, a Limited Payment Guaranty for 10% of the Mortgage Loan amount is required.

Escrows: Funding of tax and insurance escrows depend on leverage level. Replacement reserve escrow is typically not required.

Third Party Reports: Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.

Assumable: Mortgage Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.

Minimum Underwritten Vacancy/Collection Loss:  Minimum 5% economic vacancy assumption.

For More information contact:

Mike Caffrey – direct: 913.402.7077