Manufactured Housing Communities Purchase or Refinance

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ELIGIBLE PROPERTIES:
“Four Star” or better rating equivalent manufactured housing communities with a minimum of 50 sites. Properties must have a minimum occupancy of 90% at the time of commitment and during the preceding three-month period.

LOAN TYPE:
Fixed or adjustable-rate mortgages with terms ranging from 5 to 30 years.

PREFERRED LOAN SIZE:
$10 million and larger.

MAXIMUM LOAN:
Amount equal to the lesser of:
80% of appraised value; or
For fixed-rate mortgages, 1.25 debt service coverage; for adjustable-rate mortgages, 1.00 debt service coverage using the underwriting rate. The underwriting rate is equal to the note rate plus the greater of 3% or the Lifetime Interest Rate Cap.

INTEREST RATES:
Determined by market rates at the time of rate lock. Rates vary by loan-to-value ratio, debt service coverage and property quality.

AMORTIZATION:
Up to 30 years for age restricted communities, all others 25 year amortization.

PERSONAL RECOURSE:
None, except for standard exceptions to non-recourse, which are the responsibility of the Key Principal(s).

ASSUMABILITY:
Assumable, subject to Walker & Dunlop approval and a 1% transfer fee.

PREPAYMENT:
For fixed-rate mortgages, yield maintenance or defeasance options; for adjustable-rate mortgages, no prepayment allowed for the first year; thereafter, either 1% or fixed declining prepayment options.

SUBORDINATE FINANCING:
Fannie Mae Supplemental Loans (second mortgages) available 12 months after initial loan closing.
Supplemental loans can be provided on a fixed or adjustable-rate basis.

ESCROWS:
125% to 150% of estimated cost of required repairs, if any, as determined by the physical inspection.
Monthly escrows for real estate taxes, property insurance and replacement reserves.

APPLICATION FEE:
Based on estimated underwriting costs for appraisal, architectural / engineering report, environmental assessment and other loan processing costs.

FINANCING FEE:
Negotiable.

CLOSING EXPENSES:
Standard transaction costs, including legal fees, title insurance and survey.

PROPERTY REQUIREMENTS:

  • Key Principal of Borrower shall have experience in operating manufactured housing communities.
  • Competitive amenity package.
  • Paved roads with rolled or concrete curbs, and concrete patios or raised porches/cabanas.
  • All homes shall be professionally skirted, and a minimum of 75% of all hitches/jackposts concealed.
  • Minimum of two off street paved parking spaces subject to local zoning ordinances.
  • 50% of the total sites must be doublewide to allow for placement of doublewide homes upon turnover.
  • No more than 10% tenant-occupied.
  • Maximum density shall not exceed 10 homes per acre.
  • Public underground utilities. Written approval from Walker & Dunlop is required for a septic system or a private water treatment plant.
  • Seasonal properties may require a seasonal working capital reserve for payment of operating expenses and debt service for the property during seasonal reductions in rent collections.

PRELIMINARY SUBMISSION PACKAGE:

Include the following in your request for a loan quote:

  • Property description and location map.
  • Representative color photographs.
  • Current rent roll and year-to-date operating statement.
  • Operating history – prior 3 years, if available.
  • Current year operating budget.
  • Existing debt and cost basis.
  • Sponsor resume.

This is a summary of general program terms, which are subject to change. This is not a commitment to lend.