“MHC loans are an example of how we are serving new geographic markets where added liquidity is critical and where manufactured housing provides an important source of affordable rental housing, especially in rural and non-metro areas,” said Kelly Brady, Freddie Mac Multifamily Vice President.
There are approximately seven million manufactured home households in the U. S., and roughly one third are renters, according to the 2014 American Community Survey. Moreover, rents on MH are typically less than an apartment or rental house.
Brady added, “This is a new program and we made adjustments to our product to better serve these communities. Some of the community owners told us about the increasing demand for rentals on their property, so we adjusted our program to allow more rental units with our financing.”
Freddie Mac MHC Loan Details:
- Eligible properties are stabilized, quality, professionally-managed communities owned by experienced operators.
- The collateral securing MHC loans primarily consists of the community’s land, infrastructure, amenities and any community-owned rentals.
- The primary income securing the mortgage is from home site rent paid by individuals and homeowners in the communities.
- More than $560 million in MHC loans have been securitized through Multifamily K-Deals. ##
(Photo credit: Freddie Mac headquarters)
