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 |
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| 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:
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. |
| Prepayment Provisions |
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. |
| Additional Considerations |
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