Agency Loan

A loan backed by Fannie Mae or Freddie Mac — the most common financing for stabilized parks.

An agency loan is a mortgage backed by Fannie Mae or Freddie Mac (the two government-sponsored enterprises serving multifamily housing). For mobile home park operators, agency loans typically offer the lowest rates and longest amortization (up to 30 years) but require the strictest underwriting: stabilized occupancy of 90 percent or higher, TOH percentage typically above 50 percent, and an established operating track record. Agency loans are the preferred long-term hold for operators with existing portfolios; bridge or CMBS financing usually fills the gap during acquisition or stabilization periods.

Related Terms

Bridge Loan

Short-term, higher-rate financing used to acquire and stabilize a park before a longer-term refi.
Capitalization Rate (Cap Rate)

A property's annual NOI divided by its purchase price, expressed as a percentage.
CMBS Loan

A commercial mortgage-backed security loan — bond-financed and typically with stricter prepayment terms.

See Agency Loan in action.

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