Manufactured Housing Communities
Purchase or Refinance

ELIGIBLE PROPERTIES:
“Four Star” or better rating equivalent manufactured housing communities with a minimum of 50 sites. Properties must have a minimum occupancy of 90% at the time of commitment and during the preceding three-month period.

LOAN TYPE:
Fixed or adjustable-rate mortgages with terms ranging from 5 to 30 years.

PREFERRED LOAN SIZE:
$3 million and larger.

MAXIMUM LOAN:
Amount equal to the lesser of:

1. 75% of appraised value (80% may be available for exceptional quality communities); or
2. For fixed-rate mortgages, 1.25 debt service coverage; for adjustable-rate mortgages, 1.00 debt service coverage using the underwriting rate. The underwriting rate is equal to the note rate plus the Lifetime Interest Rate Cap.

INTEREST RATES:
Determined by market rates at the time of rate lock. Rates vary by loan-to-value ratio, debt service coverage and property quality.

AMORTIZATION:
Typically 25-year schedule (30-year schedule may be available for exceptional quality communities).

PERSONAL RECOURSE:
None, except for standard exceptions to non-recourse, which are the responsibility of the Key Principal(s).

ASSUMABILITY:
Assumable, subject to CWCapital approval and a 1% transfer fee.

PREPAYMENT:
For fixed-rate mortgages, yield maintenance or defeasance options; for adjustable-rate mortgages, no prepayment allowed for the first year; thereafter, either 1% or fixed declining prepayment options.

SUBORDINATE FINANCING:
Fannie Mae Supplemental Loans (second mortgages) available 12 months after initial loan closing.

Supplemental loans can be provided on a fixed or adjustable-rate basis.

ESCROWS:
125% to 150% of estimated cost of required repairs, if any, as determined by the physical inspection.

Monthly escrows for real estate taxes, property insurance and replacement reserves.

APPLICATION FEE:
Based on estimated underwriting costs for appraisal, architectural / engineering report, environmental assessment and other loan processing costs.

FINANCING FEE:
Negotiable.

CLOSING EXPENSES:
Standard transaction costs, including legal fees, title insurance and survey.

PROPERTY REQUIREMENTS:

• Key Principal of Borrower shall have experience in operating manufactured housing communities.
• Competitive amenity package.
• Paved roads with rolled or concrete curbs, and concrete patios or raised porches/cabanas.
• All homes shall be professionally skirted, and a minimum of 75% of all hitches/jackposts concealed.
• Minimum of two off street paved parking spaces subject to local zoning ordinances.
• 50% of the total sites must be doublewide to allow for placement of doublewide homes upon turnover.
• No more than 10% tenant-occupied.
• Maximum density shall not exceed 10 homes per acre.
• Public underground utilities. Written approval from CWCapital is required for a septic system or a private water treatment plant.
• Seasonal properties may require a seasonal working capital reserve for payment of operating expenses and debt service for the property during seasonal reductions in rent collections.

PRELIMINARY SUBMISSION PACKAGE:
Include the following in your request for a loan quote:

1. Property description and location map.
2. Representative color photographs.
3. Current rent roll and year-to-date operating statement.
4. Operating history - prior 3 years, if available.
5. Current year operating budget.
6. Existing debt and cost basis.
7. Sponsor resume.