Fannie Mae is probably the largest lender for manufactured home parks in American
You might think this is good, since Fannie Mae was created by Congress to facilitate the affordable housing loan market, and, you probably think, foolishly, that as a resident group seeking to refinance your resident owned park, Fannie Mae would be a great source.
You would be wrong.
Fannie Mae takes the position that they will not finance a resident owned community because your group is not, by definition, financially strong enough to be entitled to a Fannie Mae loan. Fannie Mae requires a guarantee from a ‘principal’ to make a loan, and I doubt any resident owned park in the world has someone with the financial strength or willingness to guarantee a loan to Fannie Mae for the benefit of the resident group.
So as you look under every rock for refinance money, if you come across a lender/broker who touts their services with terms like DUS, Delegated Underwriting & Servicing, Fannie Mae, Federal National Mortgage Association, etc., run for the hills because they are not worth your time. And, whatever you do, don’t give them a deposit.
By the way, most of these comments also apply to Freddie Mac, the other government supported lender supposed to be in the affordable housing business.
I’ll be in touch,
Deane Sargent and PMC Financial Services have been helping mobile home park resident groups and cooperatives to organize and find financing to buy their parks for over 20 years.