Pad rent versus homes the park owns
Both can exist in one Arizona community. Lenders want them in separate columns. No value is filled in.
| Resident owns the home | Park owns the home | |
|---|---|---|
| What the investor usually collects | Site rent, and sometimes utilities | Home rent plus the site |
| What can leave | The home can be sold or moved by the resident | The home is the park's property until it is sold |
| Question for the lender | Is site rent the income, and are utilities reimbursed? | Are the homes collateral, and is that rent counted? |
People say mobile home park. Lenders say manufactured housing community. The loan, when it is a commercial loan, is on the community an investor owns: the land, the pads, the roads, and the water and sewer system that serves them. A loan that finances one home for the household that lives in it is a residential loan. That is not this page. Apartment communities have their own note on Arizona multifamily. An MHC can sit near that conversation and still not be a conventional apartment.
Fannie Mae's specialty financing page lists manufactured housing communities as a financing option where the borrower owns the MHC sites and the associated common amenities and infrastructure. The loan is delivered by a DUS lender, under the delegated model Fannie Mae describes on its own site. Capital Market Funds is not a Fannie Mae DUS lender. We arrange the package and place it with the lender that can execute the program. We do not become that lender by making the introduction.
Freddie Mac's multifamily product page says it purchases conventional loans from locally based lenders and that other executions are offered through the Optigo network. If an Arizona community belongs in a Freddie Mac execution, an Optigo lender is the party who can deliver it. This firm is not a Freddie Mac Optigo lender. Bank and CMBS remain separate holds when agency is the wrong box. None of those sentences is a ranking, and none of them is a rate.
Park-owned homes are not the same as pad rent
Many communities rent the pad and the resident owns the home. The income is site rent. Some communities also own homes and rent them. That second stream is personal property plus a pad, and lenders ask whether those homes are collateral, whether they can be moved, and whether the rent is stable. Do not add park-owned home rent to pad rent and call it one number. Label each.
Utilities change the expenses. A master meter means the community pays water or sewer and then collects from residents, or eats the difference. Individual meters push that bill to the home. Either structure can be financed. The trailing bills have to match the story. A community with failing septic, or with a private utility the seller cannot explain, is an open item, not a footnote. Permanent debt for a community that is already stable is discussed on Arizona permanent loans. Replacing an existing note is Arizona refinance.
Agency caps are not an approval
Fannie Mae and Freddie Mac buy a limited volume of multifamily loans each year. How those caps work, and why a cap is not a yes on your community, is the agency caps note. Read it for the limit. Do not read it as a statement that this park qualifies. Qualification is the executing lender's underwriting.
Coverage is still income divided by the payment. The DSCR calculator uses the income and payment you type. It does not know which homes the park owns, and it does not know the agency grid. Craig Hoebing arranges the file from Scottsdale, license CMB-1047342, NMLS 1445066. No manufactured housing community tombstone is published here.
Arizona mobile home parks market context
- Fannie Mae MHC
- Fannie Mae's specialty financing page lists manufactured housing communities as financing where the borrower owns the sites and the common amenities and infrastructure. A DUS lender delivers that loan. Fannie Mae Multifamily, specialty financing
- Freddie Mac Optigo lenders
- Freddie Mac's multifamily product page says it purchases conventional loans from locally based lenders and offers other executions through the Optigo network. An Optigo lender delivers that loan. This office does not. Freddie Mac Multifamily, products