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||
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:
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. Additional information upon request.|
|Interest Only||Amortizing only – Interest only not permitted.|
Defeasance for fixed rate loans. No prepayment premium for final 90 days of
term. Additional prepayment options are available.
|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.|