Report Form Test 2023 06

Investor Purchases, New Starts, and Tenant Performance Show Strength as Cap Rates Rise Arbor’s Single-Family Rental Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, explores a growing multifamily sector with a unique ability to rise above macroeconomic headwinds. Last year, investors purchased more single-family rental (SFR) units than in 2021 as uncertainty Read the full article…

Current Reports

Single-Family Rental Investment Trends Report Q1 2023

Arbor’s Single-Family Rental Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, explores a growing multifamily sector with a unique ability to rise above macroeconomic headwinds. Last year, investors purchased more single-family rental (SFR) units than in 2021 as uncertainty rippled through the commercial real estate industry. Construction in the sector also ramped up in 2022, with starts reaching all-time highs by unit count and market share. This upward trend, fueled by significant structural support, sets SFR apart from many other commercial real estate sectors.

Articles

Top Counties for Demographic Tailwinds

When apartment investors consider locations for capital deployment, growth potential is a top-of-mind concern. On a local level, population changes can influence everything from rent growth to occupancy to future property values. County-level positive net migration and natural population growth trends, identified in an analysis of U.S. Census Bureau data, reveal the counties where demographic tailwinds make a compelling case for real estate investment.

Single-Family Rental Investment Trends Report Q1 2023

Investor Purchases, New Starts, and Tenant Performance Show Strength as Cap Rates Rise Arbor’s Single-Family Rental Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, explores a growing multifamily sector with a unique ability to rise above macroeconomic headwinds.   Last year, investors purchased more single-family rental (SFR) units than in 2021 as Read the full article…

Articles

Affordable Housing Market Snapshot — Spring 2023

Arbor’s latest Affordable Housing Trends Report, developed in partnership with Chandan Economics, offers a wide-ranging lens into the complex, though critically important, affordable and workforce housing sectors.

Articles

Seven Facts about FHA Multifamily Loans for Affordable Housing

The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), is one of the largest mortgage insurers in the world. The agency insures mortgages on affordable housing, multifamily properties, single-family homes, multifamily properties, and health care facilities. Since 1934, FHA has financed over 50,000 multifamily mortgages nationwide. Whether you’re interested in acquiring, refinancing, or rehabilitating an affordable housing property, FHA multifamily loans are a financing route you need to know about.

Articles

Video Analysis: Arbor’s Affordable Housing Trends Report Spring 2023

In this video, Sam Chandan, professor of finance and Director of the Chen Institute for Global Real Estate Finance at the NYU Stern School of Business, discusses the key findings of Arbor’s Affordable Housing Trends Report Spring 2023, developed in partnership with Chandan Economics. He adds context to the Federal, state, and local housing policy trends impacting the future of the affordable sector, which, he notes, continues to have the highest development prospects of any residential subtype.

GENERAL: 800.ARBOR.10

Home | Fannie Mae | Manufactured Housing
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FANNIE MAE DUS®

Manufactured Housing Community Loans

Arbor’s Fannie Mae DUS Manufactured Housing Community (MHC) loans provide competitive pricing and flexible terms and function as a major source of liquidity for affordable housing community owners.

Minumum Loan Amount $750,000
Loan Term 5 to 30 years
Amortization Up to 30 years
Minimum DSCR 1.25x
Maximum LTV 80%
Interest Rate Fixed- and variable-rate options available
Eligible Properties
  • Existing, stabilized, professionally managed MHC, with or without age restriction, having a minimum of 50 pad sites
  • Quality Level 3, 4, or 5 communities
Eligible Borrower Single Asset Entity; At least one Key Principal of the Borrower should have experience in operating MHC
Property Considerations
  • MHC may be either age-restricted or all age (family community)
  • The percentage of tenant-occupied homes generally may not exceed 35%
  • Density is based on market norms and generally should not exceed 12 manufactured homes per acre for an existing community and seven manufactured homes per acre for a new community
  • With limited exceptions, all manufactured homes should conform to applicable Manufactured Housing HUD Code standards
  • Leases with two-year terms or longer cannot contain a tenant option to purchase the pad site
  • Additional pricing incentives available for non-traditional MHC ownership forms (e.g., non-profit, government entity, or resident-owned)
  • Additional pricing incentives available for Borrowers implementing Tenant Site Lease Protections
Escrows Funding of tax and insurance escrows depends on leverage level; Replacement reserve escrow is typically not required
Recourse
  • Nonrecourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy
  • For loans with the pricing incentive for having minimum Tenant Site Lease protections, a Limited Payment Guaranty for 10% of the Mortgage Loan amount is required
Third-Party Reports Standard third-party reports required, including Appraisal, Property Condition Assessment and Phase I Environmental Site Assessment
Third-Party Reports Cost Reimbursment Fannie Mae will reimburse the cost of third-party reports up to $10,000 for Communities with Tenant Site Lease Protections implemented for at least 50% of the Sites, or if the community is owned by a non-profit entity. Minimum site lease protections must include:

  • One-year renewable lease term for the site unless good cause for nonrenewal
  • 30-day written notice of site rent increases
  • Five-day grace period for site rent payments and right to cure defaults on site rent
  • Rights of tenants to:
    • Sell the manufactured home without having to first relocate it out of the community
    • Sublease the home or assign the site lease to a new buyer, so long as the new buyer meets the minimum MHC rules and regulations and the borrower’s credit standards for new tenants, consistent with the market
    • Post “for sale” signs that comply with the MHC rules and regulations
    • Sell the home in place within 45 days after eviction and receive at least 60 days’ advance notice of any planned sale or closure of the community
Prepayment Availability
  • Flexible prepayment options are available
  • Mortgage loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans or graduated prepayment for variable-rate loans
Assumption Mortgage loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience
Supplemental Financing Supplemental Mortgage Loans are available
Rate Lock 30- to 180-day commitments; Borrowers may use the Streamlined Rate Lock option
Accrual 30/360 and Actual/360
Minimum Underwritten Vacancy/Collection Loss Minimum 5% economic vacancy assumption

V020623

ARBOR.COM | 800.ARBOR.10
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