Freddie Mac Manufactured Housing Community Apartment Loans

Our Multifamily Loan Benefits

Multifamily Loan rates start as low as 5.48% (as of May 22nd, 2024)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Financing up to 80% LTV
• Terms and amortizations up to 30 years
• Long term fixed rates
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation

Freddie Mac Multifamily Loan

Freddie Mac offers highly customized multifamily loans for borrowers investing Manufactured Housing Communities (MHC). Freddie Mac Manufactured Housing Community Apartment Loans provide a highly affordable housing option for underserved populations where MHCs are a vitally important, and sometimes the only, source of affordable housing. With competitive pricing, flexible financing options, certainty, and speed of execution, these loans are a great option for borrowers looking to invest in MHCs. Typical loans will be non-recourse and eligible properties can qualify for up to 80% LTV. Additionally, Freddie Mac offers these loans in flexible 5, 7, and 10-year terms, with amortizations of up to 30 years. This provides high versatility to help satisfy each MHC borrower’s individual financing needs.

Freddie Mac Manufactured Housing Community Apartment Loan Highlights

Loan size: $1 and up

Use: Acquisition or Refinance

Term Length: Up to 5-, 7-, and 10-year terms; longer term loans considered on a case-by-case basis

Amortization: Up to 30 years

Interest Only: Yes

Maximum LTV:

5 Year Loan

  • Amortizing: 75% LTV
  • Partial Term Interest-Only: 75% LTV
  • Full Term Interest-Only: 65% LTV


7 Year Loan

  • Amortizing: 80% LTV
  • Partial Term Interest-Only: 80% LTV
  • Full Term Interest-Only: 70% LTV


10 Year Loan

  • Amortizing: 80% LTV
  • Partial Term Interest-Only: 80% LTV
  • Full Term Interest-Only: 70% LTV


Minimum DSCR:

5 Year Loan

  • Amortizing: 1.30% DSCR
  • Partial Term Interest-Only: 1.30% DSCR
  • Full Term Interest-Only: 1.40% DSCR


7 Year Loan

  • Amortizing: 1.25% DSCR
  • Partial Term Interest-Only: 1.25% DSCR
  • Full Term Interest-Only: 1.35% DSCR


10 Year Loan

  • Amortizing: 1.25% DSCR
  • Partial Term Interest-Only: 1.25% DSCR
  • Full Term Interest-Only: 1.35% DSCR


Recourse Requirements: Non-recourse except for industry standard “bad boy” carve-outs


Prepayment Penalties: Yield maintenance until securitized followed by 2-year lock out; defeasance thereafter. No prepayment premium for final 90 days. If loan is not securitized within first year, then yield maintenance applies until the final 90 days. Yield maintenance without defeasance is available for securitized loans at an additional cost.


Loan Assumability: Loans are assumable with lender’s permission. A fee of 1% assumption fee will be payable to Freddie Mac.

Eligible Borrowers:

  • A key principal should have two or more years of experience in operating MHCs and should own one other MHC property
  • Borrowing entity can be any of the following: limited partnership, corporation, limited liability company, or a tenancy in common (TIC) with 10 or fewer tenants in common
  • Other structures such as general partnerships, limited liability partnerships, REITs and certain trusts may also be acceptable in limited circumstances.
  • Borrower must usually be a Single Purpose Entity. However, on loans less than $5 million, a borrower other than a TIC may be a Single Asset Entity instead of a SPE
  • If the borrower is structured as a TIC, each tenant in common must be an SPE


Eligible Property Types: Existing, stabilized, high-quality, and professionally managed manufactured housing communities (MHCs), with or without age restrictions, excluding Seniors Housing Loans


Tax and Insurance Escrow: Typically Required

Replacement Reserves: Typically Required

Other Terms:

  • The MHC must have at least of five pad sites
  • The percentage of homes owned by the borrower, borrower-affiliate, or third-party investor cannot exceed 25% in aggregate
  • Homes must conform to the requirements of the Federal Manufactured Home Construction and Safety Standards Act of 1974 (HUD Code Standards)
  • Private wells and septic systems are allowed with considerations
  • Leases cannot contain options to purchase pad site or borrower-owned manufactured homes
  • Retail sales or financing by borrowing entity of any manufactured homes is not allowed
  • RV campgrounds and broken condominiums are excluded


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