Loans for manufactured housing communities
Manufactured housing communities are one of the few commercial property types with full agency financing. Fannie Mae lends to 80% max LTV1 at 1.25x min DSCR1 on communities with 50 pad sites minimum1. Freddie Mac goes to 80% LTV / 1.25x DCR (7-year+)2 with a minimum 5 pad sites; loans of $1 million or more2. Smaller or lower-quality parks go to banks, CMBS and bridge lenders.
| Fannie Mae MHC maximum LTV | 80% max LTV1 |
|---|---|
| Fannie Mae MHC minimum DSCR | 1.25x min DSCR1 |
| Fannie Mae MHC minimum size | 50 pad sites minimum1 |
| Freddie Mac MHC leverage (7-year and longer terms) | 80% LTV / 1.25x DCR (7-year+)2 |
| Freddie Mac MHC minimum size | minimum 5 pad sites; loans of $1 million or more2 |
Programs that lend on it
Ordered by highest maximum loan-to-value.
| Program | Indicative rate | Max LTV | Min DSCR | Recourse |
|---|---|---|---|---|
| Freddie Mac Optigo conventional loans | 5.89 to 6.29% | 80% max LTV (7-year+), 75% (5 to under 7 years)6 | 1.25x min DCR6 | Non-recourse (standard carve-outs) |
| Fannie Mae DUS multifamily loans | 5.99 to 6.59% | 80% max LTV7 | 1.25x min DSCR7 | Non-recourse (standard carve-outs) |
| Fannie Mae Small Loans | Deal by deal | 80% max LTV5 | 1.25x min DSCR5 | Non-recourse (standard carve-outs) |
| Life insurance company loan | 6.09 to 7.14% | Not published | Not published | Non-recourse (standard carve-outs) |
| CMBS conduit loans | 6.48 to 7.14% | Not published | Not published | Non-recourse (standard carve-outs) |
| Commercial bridge loans | 6.80 to 7.49% | Not published | Not published | Varies by lender |
| Debt fund and mortgage REIT loans | 6.98 to 7.33% | Not published | Not published | Non-recourse (standard carve-outs) |
| Bank commercial mortgage | Deal by deal | 85%8 (bank supervisory ceiling) | Not published | Full recourse |
Layers that can sit on or around the senior loan here: Blanket loan.
The short version
| Community | First call | Also price |
|---|---|---|
| Stabilized, larger, good quality, mostly resident-owned homes | Fannie Mae or Freddie Mac MHC | CMBS, life company at low leverage |
| Smaller community above Freddie’s minimum | Freddie Mac MHC, Fannie Mae Small Loans | Bank |
| Many park-owned or rental homes, lots of vacant pads | Bank, bridge | Debt fund on larger deals |
| Private utilities, deferred infrastructure | Bank, bridge | Agency once systems are fixed |
| Several small parks | Portfolio or blanket loan | Separate agency loans on the eligible ones |
Agency MHC terms side by side
| Term | Fannie Mae MHC | Freddie Mac MHC |
|---|---|---|
| Leverage | 80% max LTV1 | 80% LTV / 1.25x DCR (7-year+)2 |
| Coverage | 1.25x min DSCR1 | Shown in the leverage row |
| Minimum size | 50 pad sites minimum1 | minimum 5 pad sites; loans of $1 million or more2 |
| Loan size | No minimum or maximum loan size3 | See minimum |
| Park-owned or rental homes | Park-owned homes generally 25% max; up to 35% with a plan to reduce1 | up to 25% of homes may be rentals2 |
| Quality | Quality Level 3, 4 or 5 communities only1 | Lender review |
| Replacement reserve | Lender sets | $50 per site per year minimum2 |
| Recourse | Non-recourse with carve-outs | Non-recourse with carve-outs |
Programs ranked for a stabilized community
| Rank | Program | Wins when | Loses when |
|---|---|---|---|
| 1 | Fannie Mae MHC | Larger, higher-quality communities | Below the pad minimum; too many park-owned homes |
| 2 | Freddie Mac MHC | Smaller communities above Freddie’s minimum | Rental-heavy parks |
| 3 | CMBS conduit | Non-recourse for parks the agencies pass on | Defeasance and servicing structure |
| 4 | Bank | Small parks, park-owned homes, infrastructure work | Recourse, shorter term |
| 5 | Life company | High-quality, low-leverage communities | Most smaller parks |
| 6 | Bridge | Filling vacant pads, selling homes, fixing infrastructure | Floating rate, short term |
What MHC underwriters focus on
- Lot rent and resident ownership. The core of an MHC loan is pad rent from residents who own their homes. Lenders measure the share of park-owned and rental homes against the agency limits above.
- Occupancy and absorption. Occupied pads, vacant pads, and how fast new homes have been placed.
- Utilities. Who owns water and sewer, whether utilities are submetered and billed back, and the condition of private wells, septic or package treatment plants.
- Infrastructure. Roads, drainage, electric pedestals and pad sites. A replacement reserve per site covers it; deferred items become repair escrows.
- Community quality and amenities. Fannie Mae restricts eligibility to higher-quality communities (Quality Level 3, 4 or 5 communities only).
- Age-restricted and RV components. Age-restricted communities are common and financeable; RV sites and short-stay income are usually discounted or excluded.
- Flood zone and storm exposure. Insurance cost and availability in coastal and flood-prone areas.
- Rent regulation. Some states and localities limit lot rent increases. Lenders underwrite to the allowed rent.
- Home financing for residents. Whether residents can finance or sell homes in the community affects turnover and pad occupancy.
Sizing example (illustration)
An illustration, not a quote. A 140-pad community, 94% occupied, $650 monthly lot rent: $1,092,000 gross potential rent, $1,026,480 collected. NOI is $636,400 (an assumed 62% margin, with utilities billed back to residents), valued at $10,610,000 (a 6.0% cap rate).
| Test | Agency MHC (80%, 1.25x, 30-year, illustrative 6.25%) | Bank (assumed 75%, 1.25x, 25-year, illustrative 6.85%) |
|---|---|---|
| LTV | $8,488,000 | $7,958,000 |
| Debt service the NOI supports | $636,400 / 1.25 = $509,100 | $509,100 |
| Loan constant | 7.39% | 8.37% |
| DSCR test | $6,891,000 | $6,085,000 |
| Loan | $6,891,000 (65% LTV) | $6,085,000 (57% LTV) |
The agency loan is about $800,000 larger, and non-recourse. The bank loan’s advantage is flexibility: it can fund a park with too many rental homes or a utility project, which the agency loan cannot. A common path is bank or bridge first, then agency once the community fits the box. The bank figures are assumptions for the example, not market terms.
Programs to avoid
- Freddie Mac Conventional Small. Excludes MHC; use Freddie’s MHC product.
- Agency loans on a rental-heavy park. It will not qualify until park-owned homes are sold or reduced.
Questions people ask
What is the smallest park an agency will finance?
Freddie Mac's minimum is minimum 5 pad sites; loans of $1 million or more. Fannie Mae's MHC term sheet requires 50 pad sites minimum, and says: No minimum or maximum loan size3. Parks below those lines borrow from banks, credit unions or private lenders.
How many park-owned homes can an agency community have?
Fannie Mae: Park-owned homes generally 25% max; up to 35% with a plan to reduce1. Freddie Mac: up to 25% of homes may be rentals. Above those levels the community is underwritten more like a rental home business, and banks or bridge lenders are the usual fit until the homes are sold to residents.
Can I use Freddie Mac's small loan program on a mobile home park?
No. Freddie Mac's Conventional Small term sheet: Excludes student, seniors, MHC and co-op properties; no hard subordinate debt. Freddie's MHC product is the agency route for parks, and Fannie Mae Small Loans list MHC among eligible properties: Existing stabilized conventional, affordable and MHC properties with 5+ units5.
Do lenders finance parks with private wells or septic systems?
Many do, with more diligence. Private water and sewer systems mean regulatory compliance, testing and capital needs that the owner carries. Expect the lender to review permits and testing, and to set reserves for system repairs.
Related
Sources
- Fannie Mae Multifamily, Manufactured Housing Communities Term Sheet, retrieved November 1, 2026
- Freddie Mac Multifamily, Optigo Manufactured Housing Community Loan Term Sheet, as of April 2026
- Fannie Mae Multifamily, Manufactured Housing Communities, retrieved November 1, 2026
- Freddie Mac Multifamily, Optigo Conventional Small Term Sheet, as of April 2026
- Fannie Mae Multifamily, Small Mortgage Loan Program Term Sheet, retrieved November 1, 2026
- Freddie Mac Multifamily, Optigo Fixed-Rate Loans Term Sheet, as of April 2026
- Fannie Mae Multifamily, Conventional Properties Term Sheet, retrieved November 1, 2026
- eCFR, 12 CFR Part 365 Appendix A (Interagency Guidelines for Real Estate Lending Policies), as of November 26, 2021
How we check figures: methodology and editorial policy.