FHA Insurance
Programs Section 207 -
Manufactured Home Park Program
Purpose: To assist in
financing the construction or substantial rehabilitation of mobile home
communities.
Eligible Borrower: Profit motivated, non-profit motivated, and
public owners are eligible.
Maximum Term: 40 years, not to exceed 75% of remaining economic
life.
Maximum Loan: The loan amount may not exceed the lesser of:
(1) $17,847 per space (as defined by the Assistant Secretary for Housing
– Federal Housing Commissioner). The Secretary is authorized to increase
this limit up to 240% in any geographical area where cost levels so
require.
(2) 90% of the estimated value of the property after improvements are
completed
(3) Amount debt serviced by 90% of the estimated NOI
With regard to a Substantial Rehabilitation the following limitations
will apply in addition to those set forth above:
(4) For Property Held in Fee: If no part of the proceeds is to be used
to finance the purchase of the land or structures involved, the loan
amount may not exceed 100% of the approved cost of the completed repair
or rehabilitation.
(5) Property Subject to Existing Mortgage: If part of the proceeds will
be used to satisfy an existing mortgage, the loan amount may not exceed
the sum of the estimated cost of repair and rehabilitation; plus the
lesser of; (a) the outstanding indebtedness secured by the property, or
(b) 90% of the estimated fair market “as is” value of the property prior
to rehabilitation.
(6) Property to be Acquired: If part of the proceeds will be used to
acquire the property, the loan amount may not exceed the sum of 90% of
the estimated cost of repair or rehabilitation; plus 90% of the lesser
of: (a) the actual purchase price of the property, or (b) the estimated
fair market “as is” value of the property prior to repair or
rehabilitation.
Personal Liability: None.
FHA Application Fees: 0.3% of the loan amount.
Mortgage Insurance Premium: FHA resets on a yearly basis the
annual MIP which historically has ranged from 45 to 60 basis points per
year. Once set, the MIP does not vary for the life of the loan.
Funding: Qualifies for government guaranteed mortgage-backed
securities or direct placement or to credit enhance tax-exempt bonds.
Prepayment: Typically either: (i) closed for 10 years then open
to prepayment at par, or (ii) closed for five years then open to
prepayment at 105 in year six, declining 1% per year.
Interest Rate: Subject to market conditions.
Territory: Nationwide.
The program has the following additional parameters:
Davis Bacon prevailing wages requirements do apply;
Subject to cost certification (as is applicable to the 221(d) programs);
207 processing usually takes from 3 to 6 months. This program is not
eligible for submission under the FHA Multifamily Accelerated Processing
program.
In its pre-qualifying review, American Trust Corporation will estimate
both the loan amount and the fees and costs associated with the
transaction. Actual loan amounts and actual fees and expenses may vary
from the pre-qualifying estimates. A pre-qualifying estimate is not a
commitment to make a loan.
Application Fee: $2,500 non-refundable inspection/loan processing
fee payable to American Trust Corporation with the loan application,
will be credited to origination fee at closing
Origination Fee: 1%
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