5d • Financing & Closing
Agency Financing
Please confirm this:
From our Financing Course
3. Agency Lenders (Fannie Mae & Freddie Mac) (Best for Large, Stabilized Parks with Strong Financials)
✅ Pros:
✔️ Non-Recourse Loans – No personal guarantee required.
✔️ Longest Loan Terms – 10+ years with 30-year amortization.
✔️ Lowest Interest Rates – Often 1-2% lower than bank loans.
✔️ Interest-Only Periods – Some loans offer 2-5 years of interest-only payments, improving cash flow.
❌ Cons:
🚫 Strict Property Requirements – Must be at least 80% occupied.
🚫 Limits on POHs – Cannot exceed 35% park-owned homes.
🚫 Intensive Documentation – Requires detailed trailing 12-month financials, rent rolls, and collections reports.
🚫 Prepayment Penalties – Yield maintenance or defeasance makes early payoff expensive.
🚫 Replacement Reserves ($250-500 / home annually required)
💡 Best for:
- High-quality (4-star+) parks in strong markets
- Larger deals ($1.5M+ loan minimums)
- Investors looking for long-term, fixed-rate financing with no personal guarantee
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Agency Financing
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