USDA Financing for Manufactured Homes: Age Requirements and Eligibility
The USDA does not offer financing for manufactured homes over 12 months old. However, there is a pilot program in Iowa that allows for funding existing manufactured homes built after January 1, 2006. To be eligible for this program, the home must meet the following requirements:
- Be at least 400 square feet in size
- Be inspected using HUD Form 309 – Manufactured Home Installation Certification and Verification Report
- Have no alterations or modifications since it was manufactured
- Have the towing hitch and running gear removed
- Be taxed as real estate
- Have a remaining economic life of at least 30 years
Contact a lender participating in the program to finance a manufactured home through the USDA. You can find a list of participating lenders on the USDA Financing USDA website.
Here are some additional things to keep in mind when financing a manufactured home: Get Your Home Sweet Home: USDA Financing Makes it Possible!
- The USDA does not offer mortgage insurance, so you must pay at least 5% of the purchase price down.
- The interest rate on a USDA loan is typically higher than the interest rate on a conventional mortgage.
- The USDA may require you to pay private mortgage insurance (PMI) if your down payment is less than 20% of the purchase price.
If you are considering buying a manufactured home, compare the costs of financing a manufactured home through the USDA with the costs of funding a conventional mortgage. You should also consider the features and amenities of the manufactured home, as well as the location of the house.
Welcome to the USDA Income and Property Eligibility Site, where you can assess your eligibility for program assistance. Your household income must meet specific guidelines to qualify for many USDA loans. The property you intend to purchase must also be in a rural area, meeting USDA’s eligibility criteria.
If you want to learn more about USDA home loan programs and how to apply, click on one of the USDA Loan program links provided above and select the Loan Program Basics link for the program you are interested in.
To determine if a property falls within an eligible rural area, click on one of the USDA Loan program links above and select the Property Eligibility Program link. Once you choose a Rural Development program, you’ll be directed to the corresponding property eligibility screen for that specific loan program.
To evaluate an applicant’s or household’s potential eligibility, click one of the Single Family Housing Program links above and select the relevant link.
For further information and to contact a USDA Program Representative, click the Contact Us link above and select the appropriate USDA program.