Affordable Housing Developers
Affordable Housing Developers
One major requirement in achieving success for Affordable Housing Developers purchasing manufactured home parks is the various sources of financing available.
Generally, Affordable Housing Developers rely on a number of different sources for the financing of their affordable housing projects. Mobilehome parks are somewhat different because the traditional sources of financing (tax credits, etc.) are not available.
Thus, Affordable Housing Developers need to be creative in solving the financing needs of their project and in solving such needs in the time provided from the seller.
Most of the money to buy the park comes in the form of a first mortgage loan. Other financing comes in the form of grants, low interest loans and other benevolent funds. The larger the first mortgage loan the smaller the amount of grants, loans, etc., which generally are very difficult to arrange.
We include in this section Term Sheets with the details of several loan programs that have worked for Affordable Housing Developers recently. Every park is different, so compiling a package of financing to fund the project can be very complex.
FHA 207M LOAN – Purchase & Rehabilitation
FHA loans are made by a private lender but are guaranteed by HUD/FHA under various multifamily housing programs. Using this program, Affordable Housing Developers can purchase or refinance existing mobile home parks. A program of rehabilitation is required. If your project qualifies, the key to this loan is negotiating enough time with the seller to obtain the FHA guarantee.
FHA 207M LOAN – New Construction
FHA loans are made by a private lender but are guaranteed by HUD/FHA under various multifamily housing programs. Using this program, Affordable Housing Developers can develop a new mobilehome park If your project qualifies, the key to this loan is negotiating enough time with the seller to obtain the FHA guarantee.
FHA 221(d)(4) LOANS
FHA 221 D 4 loans are made for projects that include BOTH the PARK and the MH HOMES, where the combination of site AND home are to be rented to residents. Loans are made by a private lender but are guaranteed by HUD/FHA under various multifamily housing programs. If your project qualifies, the key to this loan is negotiating enough time with the seller to obtain the FHA guarantee.
CONDUIT LOANS
Conduit loans are made by private lenders who place the loans with investors. This market has been very difficult lately but is improving.
FNMA (Fannie Mae) DUS LOANS
Conduit loans are underwritten by lenders approved by FNMA in accordance with the FNMA guidelines. The program targets typically higher quality parks. This market has been active due to the general credit market problems with other programs.