If you’re exploring ways to finance your dream home, you may have come across the USDA loan program. Known for offering affordable mortgage options with zero down payment requirements, a USDA loan can be a game-changer for buyers in eligible rural and suburban areas. But here’s the big question: Can you use a USDA loan for a manufactured home?
The short answer is yes. But, there are a few specific guidelines you’ll need to meet. Let’s break it down.
What Is a USDA Loan?
A USDA loan, backed by the U.S. Department of Agriculture, is designed to help low- to moderate-income buyers purchase homes in qualifying rural areas. With benefits like no down payment, competitive interest rates, and reduced mortgage insurance costs, it’s one of the most affordable paths to homeownership, especially for buyers looking outside of major cities.
USDA Loans and Manufactured Homes
The USDA does allow financing for manufactured homes, but there are extra requirements compared to site-built homes. This is to ensure the home meets certain safety, quality, and long-term durability standards.
To qualify, the manufactured home must:
- Be brand new or moved directly from the dealer to the home site OR
- If it’s an existing home, the home must be no more than 20 years old from the date of loan closing
- Be permanently affixed to a foundation that meets HUD standards.
- Meet USDA guidelines for square footage, design, and livability.
- Be located in a USDA-eligible area.
- Be purchased through an approved lender offering manufactured home loans under the USDA program.
If you’re buying an existing manufactured home that’s already been lived in, it must be no older than 20 years old from date of expected closing and never have been installed at a different location
Benefits of Using a USDA Loan for a Manufactured Home
Pairing the affordability of manufactured housing with the perks of a USDA loan can make homeownership surprisingly accessible. Some of the main advantages include:
- Zero down payment: Keep more of your savings for other expenses.
- Competitive interest rates: Save money over the life of the loan.
- Lower mortgage insurance costs: More budget-friendly monthly payments.
- Rural eligibility: Often easier to find large, affordable lots for manufactured homes.
Steps to Get Started
If you think a USDA loan might be the right fit for your manufactured home purchase, here’s how to move forward:
- Check USDA eligibility maps to confirm your desired location qualifies.
- Find an approved USDA lender experienced with manufactured home loans.
- Work with a dealer who can provide a compliant, brand-new manufactured home OR
- Work with a real estate agent who understands the requirements for existing manufactured homes
- Prepare your finances by checking your credit score and gathering necessary documentation.
The Bottom Line
Yes, you can use a USDA loan to finance a manufactured home, as long as you meet the program’s specific requirements. By combining the affordability of manufactured homes with the low-cost financing of a USDA loan, you can achieve the dream of homeownership with less financial strain.
If you’re ready to explore your options, ManufacturedHomeLoans.com is here to help. Our marketplace connects you with lenders who specialize in manufactured housing financing, including USDA loan programs. Start your journey today. Your new home could be closer than you think.
