Freddie Mac Manufactured Housing Resident Owned Community Loans

Our Multifamily Loan Benefits

Multifamily Loan rates start as low as 5.47% (as of February 24th, 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

Manufactured housing communities are crucial parts of the American residential landscape. In many rural areas, these communities are the only source of affordable housing. Within the MHC arena, there are communities that are actually resident owned- meaning, even Americans on a budget can have an ownership stake within the place that they live. Freddie Mac offers great financing for these resident owned communities. The Freddie Mac Manufactured Housing Resident Owned Community Loan (MHROC) boasts great terms, such as LTV up to 70%, flexible 5 to 30 year fixed-rate terms and amortizations of up to 30 years. In addition, these loans are typically non-recourse, allow supplemental financing, and can be used for both acquisition purposes and seasoned refinancing transactions.

Freddie Mac Manufactured Housing Resident Owned Community Loan Highlights

Minimum UBP Amount: $500,000

Terms: 5to 30 years

Amortization: Up to 30 years

Interest Rate: Fixed rate only. Floating rate not permitted in this program.

Interest Only: Not permitted. Loans are all amortized.

Eligible Property Types: Properties must be existing, stabilized and high-quality. Additionally the communities must be professionally managed.
Eligible Borrowers: Borrower must be a not-for-profit cooperative corporation or association. Shares in the co-op must be sold to shareholders and must entitle the shareholder to occupy a specific pad.

Eligible Transaction Types:

  • Acquisition/Conversion: An acquisition mortgage on a manufactured housing community which is in the process of converting from a rental property to an MHROC. The MHROC Borrower must be formed prior to rate lock.
  • Seasoned Refinance: A Refinance Mortgage on an existing MHROC in which the majority of shares are already sold to resident shareholders

Maximum LTV/ Minimum DSCR

  • Market-Rate Rental: <
  • Acquisition/Conversion: 70%/1.40x
  • Seasoned Refinance:70%/1.40x
  • Cooperative:
    • Acquisition/Conversion: N/A/1.15x
    • Seasoned Refinance: N/A/1.10x

    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.


    Requirements For Resident Shareholders:

    At rate-lock:

    • 100% of pad sites must be owned by the MHROC Borrower
    • At least 90% of shares must be owned by resident-shareholders


    Additional Considerations:

    • The percentage of homes owned by the borrower, borrower-affiliate, or third-party investor cannot exceed 5% in aggregate
    • Replacement reserve escrow required in the amount of at least $50/site/year and $250/borrower-owned manufactured home/year (if included in the collateral)
    • Private facilities such as wells and septic systems are allowed subject to Freddie Mac guidelines
    • Rental leases may not contain options to purchase pad sites or borrower-owned manufactured homes
    • Retail sales or financing by borrowing entity of any manufactured homes or shares in the MHROC Borrower is prohibited
    • RV campgrounds and broken condominiums are not allowed
    • Wrap financing, seller financing, mezzanine financing, and preferred equity are not permitted
    • Freddie Mac will not purchase end loans or loans to individual shareholders


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