Get Your Dream Home with a USDA Loan for Manufactured Housing

Buying a home is one of the biggest financial decisions you can make. For many Americans manufactured homes (also known as mobile homes) provide an affordable pathway to homeownership. With a USDA loan for manufactured housing you can finally realize the dream of having your own home without breaking the bank.

What is a USDA Loan?

USDA stands for the United States Department of Agriculture. They have a program that helps Americans in rural areas get home loans. These loans are guaranteed by the USDA, which makes it easier to qualify. USDA loans offer:

• 100% financing – You can get a mortgage for the full appraised value of the home, so no down payment is required.

• Low interest rates – USDA loans often have lower interest rates compared to other loan programs. Rates are capped at a maximum allowed by the agency.

• Low mortgage insurance – You only have to pay an upfront guarantee fee of 1% of the loan amount. No monthly mortgage insurance payments.

• Flexible credit requirements – The USDA has more lenient credit standards than conventional loans, Minimum credit score requirements are typically around 640,

• No income limits – There are no income caps to qualify for a USDA home loan. You just have to show you can afford the monthly payments.

What is a Manufactured Home?

Manufactured housing is built in factories in sections, then transported to your property where the home is assembled. These factory-built homes offer many benefits:

• Cost savings – Manufactured homes cost 10-35% less per square foot compared to site-built homes. Factory construction is more efficient.

• Customization – You can customize the floor plan, features, appliances, finishes and more.

• Quality – Manufactured homes must meet HUD standards for quality and safety. They go through rigorous testing and inspections.

• Fast move-in ready – You don’t have to wait months for construction. Manufactured homes can be move-in ready within weeks.

USDA Loans for Manufactured Housing

The USDA Single Family Housing Guaranteed Loan Program offers financing options for manufactured housing. You can qualify for a USDA loan to:

• Buy a new manufactured home – The home must be transported directly from the factory and installed on a permanent foundation.

• Buy an existing manufactured home – You can finance the purchase of a used manufactured home if it meets program requirements.

• Refinance a manufactured home – Refinance an existing mortgage on your manufactured home into a new USDA loan.

• Buy land and a manufactured home – The USDA program finances both the home and land in one convenient loan.

• Finance land, home setup, and other costs – Closing costs, transportation, site prep, installation expenses can be included in the loan.

Requirements for USDA Manufactured Home Loans

To qualify for a USDA loan on a manufactured home, there are certain requirements:

• The home must be new and unused from the factory OR existing (used) but meet program guidelines.

• Minimum 400 sq ft of living space.

• Home must be installed on a permanent foundation, like a slab or piers.

• Must conform to Federal Manufactured Home Construction and Safety Standards.

• Inspected by a qualified third-party inspector.

• Have certification the home meets thermal/energy standards.

• Home must be classified and taxed as real estate, not personal property.

• Land and home must be in an eligible rural location.

• Borrower must meet USDA income and credit requirements.

How to Apply for a USDA Manufactured Home Loan

Follow these steps to get a USDA loan for your manufactured home:

1. Find a home – Select a new or used manufactured home from a reputable dealer. Make sure it fits program guidelines.

2. Choose land – Pick out a suitable lot or land in an eligible rural area for your manufactured home.

3. Get pre-qualified – Talk to a lender that offers USDA loans and get pre-qualified so you know your price range.

4. Make an offer – After selecting your home and land, make offers and get purchase agreements signed by both parties.

5. Find a lender – Shop around with a few lenders to compare interest rates and fees. Apply for your USDA home loan.

6. Get appraisal and inspection – The lender will arrange for the home to be appraised and inspected to ensure it is structurally sound and meets HUD standards.

7. Close on home – After loan approval, you’ll sign closing documents and the home will be delivered and set up on the foundation.

Benefits of Using a USDA Loan for a Manufactured Home

USDA manufactured housing loans offer home buyers many advantages:

Save Money

• Requires no down payment or PMI for 100% financing.
• Low USDA fees of only 1% of the loan amount.
• Favorable interest rates compared to other loans.
• Lower monthly payments free up cash for other expenses.

Build Equity

• Interest paid on a mortgage goes towards building home equity.
• Equity provides savings for future use and wealth creation.
• Generous appraisals capture full market value to maximize equity.

Gain Stability

• Fixed-rate USDA mortgages lock in a consistent payment for the loan term.
• Predictable housing costs help stabilize monthly expenses.
• Avoid the risk of rising rents with a place to call your own.

Enjoy Flexibility

• Customize factory-built homes with flexible floor plans and finishes.
• Choose where to place your home with land options.
• Refinance or sell later as your needs change.

Achieve Homeownership

• Stop paying rent and start building equity.
• Take pride and find security in owning your own home.
• Pass on a valuable asset to future generations.

Start Your Journey to Affordable Homeownership

With the high cost of traditional site-built houses, a USDA manufactured home loan offers an attainable way to finally achieve your dream of owning a home. You can customize both the home and land to perfectly suit your needs and lifestyle. A reputable lender can guide you through the mortgage process from start to finish.

Don’t wait any longer to start building equity and enjoying the stability and pride that come with homeownership. Take control of your housing costs and open the door to a brighter, more secure future in the home of your dreams. Contact a USDA approved lender today to learn more and start your application!