Articles

FHA Multifamily Case Study: Closing Loans Amid Uncertainty

In times of volatility, it pays to have support from a team willing to go the extra mile. Whether it’s meeting tight deadlines or ensuring all requirements are met, Arbor’s Federal Housing Administration (FHA) Underwriting department remains committed to helping borrowers secure loans that expand rental housing opportunities for Americans.

Analysis

Top U.S. Multifamily Rent Growth Markets — Q4 2024

The U.S. multifamily market held steady in a more normalized cycle during the third quarter of 2024. Rental demand remained strong, while new leaders emerged among the top markets for rent growth.

Articles

CREFC Miami 2025: Young Professionals Network Fosters Career Growth

Networking and attending industry conferences to learn trends and insights are among the most advantageous ways young commercial real estate finance professionals can advance in their careers. This year, Gabriel Rondon, Analyst, Structured Asset Management at Arbor and a CRE Finance Council (CREFC) Young Professionals Network member, was selected as one of the network’s ambassadors at CREFC Miami, giving him a golden opportunity to expand his professional horizons.

Articles

The Single-Family Rental Sector Returns to Growth Mode

Although the single-family rental (SFR) sector’s profile expanded after the 2007-2010 subprime mortgage crisis, the number of its households slid between 2016 and 2020 as many rentals transitioned into owner-occupied homes. Following a period of pandemic-related uncertainty, SFR has returned to growth mode, increasing its number of households for the second time in three years.

Investment

Special Report Spring 2025: Optimism on the Rise

Arbor’s Special Report Spring 2025, developed in partnership with Chandan Economics, covers the state of the U.S. rental housing market on the cusp of a new cycle. After a year of steady growth, favorable trends put wind in the sector’s sails, giving rise to budding optimism. With the economic landscape shifting, the rental housing market’s resilient performance in 2023 and 2024 provides a solid foundation for continued growth.

Analysis

Affordable Housing Market Snapshot — Winter 2024-2025

Continually challenged by low inventory, affordable housing sits at a crossroads following the 2024 election. Incoming leadership plans to introduce market-based principles to an agenda that may also include an expanded Housing Choice Voucher program.

Articles

How Lifecycle Commercial Loan Servicers Enhance Multifamily Borrowing

A loan closing is only the beginning of the borrower-lender relationship. Partnering with a lifecycle lender that also services its loans gives borrowers continuity from origination through servicing. Throughout the life of the loan, borrowers can benefit from in-house commercial loan servicers’ tailored solutions and superior customer service, which are hallmarks of a strong long-term partnership.

Articles

Lifestyle Renters Put a New Spin on The American Dream

Four in 10 renters in large multifamily apartment communities do not envision homeownership as a part of their American Dream, a survey by Entrata recently found. Instead, lifestyle renters opt for newly constructed, high-quality rental housing with many of the typical amenities of homeownership without its traditional downsides.

General: 800.ARBOR.10

Home | Freddie Mac | Manufactured Housing Resident Owned Community Loan (MHROC)
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FREDDIE MAC

Manufactured Housing Resident Owned Community Loan (MHROC)

  • Designed specifically for MHROCs (also known as MH Cooperatives)
  • Expands affordable housing options for underserved populations, particularly in rural and non-metro areas where MHROCs are prevalent

Eligible Property Types Existing, stabilized, high-quality, professionally managed MHROCs, with or without age restrictions
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 with most shares already sold to resident shareholders
Eligible Borrowers Not-for-profit cooperative corporation or association (“Co-op”) in which shares in
the Co-op are sold to shareholders and such shares entitle the shareholder to
occupy a specific pad
Requirements for Resident Shareholders At rate lock:

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

Seasoned Refinances offer flexibility on this point with alternate sizing.

Debt Service Reserve May be required
Terms 5- to 30-year terms
Minimum UPB Amount $500,000
Maximum Amortization 30 years
Interest Rate Fixed-rate only, floating rate not permitted (Refer to the Fixed-Rate Loan term sheet for additional information.)
Interest Only Amortizing only – Interest only not permitted
Prepayment Provisions Refer to the Fixed-Rate Loan term sheet for additional information.
Recourse Requirements Non-recourse, guarantor not required
Supplemental Financing Available, subject to the Supplemental Loan offering and Loan Agreement requirements
Home Rentals The percentage of homes owned by the borrower, borrower-affiliate, or third-party investor cannot exceed 5% in aggregate.
Tax and Insurance Escrows Required
Replacement Reserve Escrows Minimum $50/site/year and $250/borrower-owned manufactured home/year (if included in the collateral)
Application Fee Greater of $2,000 or 0.1% of loan amount
Early Rate and Spread Lock Options Standard Delivery
Refinance Test Refinance Test is necessary on all MHROC loans
Additional Considerations
  • Private facilities (e.g., wells and septic systems) are allowed with considerations.
  • Rental leases cannot contain option 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 not allowed.
  • RV campgrounds and broken condominiums are excluded.
  • 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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ARBOR.COM | 800.ARBOR.10
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