Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Freddie Mac Optigo Program
Freddie Mac Manufactured Housing Resident-Owned Community Loan
The Freddie Mac Manufactured Housing Resident-Owned 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 Resident-Owned Community Loan
Interest Rate: Fixed rate only. Floating rate not permitted in this program.
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.
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
- 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.
- 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
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.”
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- For 5+ unit and commercial properties, $1.5M and up