Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Freddie Mac Optigo Program
Freddie Mac Manufactured Housing Community Loan
The Freddie Mac Manufactured Housing Community Loan is one of the Freddie Mac multifamily (Optigo) programs Select Commercial arranges nationwide. Its highlights and terms are below, and you can compare it on our Freddie Mac multifamily page or view today’s commercial mortgage rates.
Get a Free QuoteAbout the Manufactured Housing Community Loan
Term Length: Up to 5-, 7-, and 10-year terms; longer term loans considered on a case-by-case basis
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.
Program Highlights & Terms
- 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
- 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
- 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 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
Terms are indicative and set by Freddie Mac underwriting for your specific property.
What Our Clients Say
“I spoke to several commercial lenders before finding Select Commercial. They got me a lower rate and their service was exceptional. If you need a multifamily loan, you need to talk to Stephen.”
Nathan B. · Philadelphia, PA“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, OR“I found selectcommercial.com and saw they specialized in apartment building loans. In the end, they were by far the best company I have used. Next time I know who to call first.”
Jerry T. · Long Island, NY“As a real estate attorney, I trust that Select Commercial will deliver apartment building loans and commercial mortgages in a timely manner. The rates and terms offered are excellent. I heartily recommend them.”
David S. · New York CityGet Your Freddie Mac Quote
No cost, no obligation. Written answers within 48 hours on multifamily loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up