Manufactured Homes On Leasehold Properties: Fannie Mae Vs. Freddie Mac Guidelines

Financing a manufactured home can already involve additional layers of review, and when that home is located in a leasehold community, the rules become even more specific.

One of the most important distinctions to understand is how Fannie Mae and Freddie Mac differ with respect to manufactured homes on leasehold land.

Fannie Mae: Leasehold Manufactured Homes Not Eligible

Fannie Mae will not finance a manufactured home that:

• Is comprised of multiple sections
• Was assembled on-site
• Is located on land that is part of a leasehold community

Even if the home is permanently affixed and otherwise meets manufactured housing requirements, the property’s leasehold land status alone makes it ineligible under Fannie Mae guidelines.

For borrowers pursuing conventional financing, this restriction can immediately eliminate Fannie Mae as an option.

Freddie Mac: Leasehold Allowed, With a Key Limitation

Freddie Mac takes a more flexible approach.

Freddie Mac will allow financing for manufactured homes located on leasehold properties, provided one critical condition is met:

• The subject property may NOT have an ADU (Accessory Dwelling Unit)

If any type of ADU is present, detached, attached, or converted,  the loan becomes ineligible under Freddie Mac guidelines.

This distinction makes Freddie Mac a potential solution when Fannie Mae cannot be used, but only if the property meets this strict requirement.

Required Documentation: Data Plate & HUD Certification Label

Regardless of which agency is used, documentation is non-negotiable.

Both of the following must be present on the manufactured home:

• Manufacturer’s Data Plate
• HUD Certification Label

In addition:

• Clear photos of both items must be included in the appraisal report

If either item is missing or not photographed, the loan cannot proceed until the issue is resolved.

Maximum Financing: Up to 95% LTV with MI

For eligible transactions, the maximum loan-to-value (LTV) is 95%, provided mortgage insurance (MI) can be obtained.

This allows qualified borrowers to achieve high leverage while still remaining within agency guidelines.

Have a Manufactured Home Scenario?

Contact us to discuss your scenario. We work with all 3 agencies and are very big in non-QM loans, so reach out and see if we have a program for you.