Issue link: https://read.dmtmag.com/i/720597
SEPTEMBER 2016 27 THE JOURNAL ORIGINATED OVER $20 BILLION IN COMMERCIAL LOANS FINANCING OPTIONS FOR MANUFACTURED HOUSING COMMUNITIES HUNT MORTGAGE GROUP C O M M E R C I A L L E N D I N G H U N T M O R T G A G E G R O U P. C O M For information contact: Carl Pankratz 972.868.5734 | Carl.Pankratz@Huntcompanies.com CERTAINTY OF EXECUTION. CLARITY OF THOUGHT. ® ½ FANNIE MAE ½ FREDDIE MAC ½ BALANCE SHEET - BRIDGE By Carl Pankrat, Vice President Hunt Mortgage Group Looking forward to the remainder of 2016 and even into 2017, the general outlook for the manufactured housing industry is very positive. As many investors are getting priced out of the market in multifamily and other product types, there has been a move- ment to MHC's. Both equity and debt in- terest are plentiful, and there continues to be a need for quality affordable housing through- out the country. Its this combination of fi- nancial stability and mission to provide affordability that paint a positive outlook for the market as we enter 2017. Speaking of debt, Fannie and Freddie con- tinue to strengthen their balance sheet, while getting more attractive to Borrowers. In 2015, as Fannie and Freddie approached their spending caps, they identified asset classes to exclude from their base lending lim- its. Manufactured housing communities were one asset class among them. Being excluded from the spending cap quickly made MHC's more attractive to the agencies, and they im- mediately looked to draft underwriting pa- rameters for the next generation of lending in the space. Into 2016, they have continued to be more accepting of 3- star properties and have become more generous in the allowance of park owned homes. Manufactured housing community owners who previously only used CMBS, are now seeing first hand the benefit of using Fannie and Freddie structures. Agency loans are non-recourse, offer high LTV ratios, and allow for supplemental loans, and are amor- tizing over 30 years. Both Fannie and Fred- die have been ramping up their involvement in the manufactured housing space, and this has led to more competitive pricing, better procedures, and has helped many manufac- tured housing community owners get out of bad debt. Manufactured housing communities were one of several new asset classes Hunt Mort- gage Group began financing in 2015. The firm has had great success with both the Fan- nie Mae MHC program and the Freddie Mac MHC Program, and has significantly ex- panded its platform since inception. Hunt Mortgage Group offers a full range of financ- ing options for owners of manufactured hous- ing communities. Hunt Mortgage Group's dedicated manufactured housing team offer client's an unparalleled understanding and expertise in this asset class. The firm provides clients permanent financing programs, offer- ing both fixed and variable rates, through Fannie Mae DUS or Freddie Mac. Earlier this year, Hunt Mortgage Group provided a $5.3 million Fannie Mae loan to refinance The Trails of Oak Hills, a manu- factured housing community located in Austin, Texas. The new loan included a 10- year term, 30-year amortization period, and a 9.5 year yield maintenance period. The borrower was a new Hunt Mortgage Group customer who developed the property 15 years ago and had continuously owned and operated it since. The Trails of Oak Hills is comprised of 51.57 acres and a clubhouse building as the only permanent HUNT MORTGAGE GROUP Hunt Mortgage Group Sees A New Look for Manufactured Housing FINANCIAL \ 29