can you buy a manufactured home with a usda loan

Yes, it is possible to buy a manufactured home with a USDA loan. USDA loans offer flexible financing options for low to moderate-income homebuyers. These loans are backed by the U.S. Department of Agriculture and are designed to promote rural development by providing affordable homeownership opportunities to qualified individuals.

What is a USDA Loan?

A USDA loan is a mortgage loan program offered by the U.S. Department of Agriculture. It is designed to help rural and suburban homebuyers purchase or refinance their homes. These loans offer attractive features, such as low interest rates, no down payment requirement, and flexible credit requirements.

Manufactured Homes and USDA Loans

Manufactured homes, also known as mobile homes, can be financed using a USDA loan. However, there are certain requirements that need to be met to qualify for this type of financing. Here are some key points to consider:

  • The manufactured home must be new and classified as real estate, meaning it should be permanently affixed to a foundation and titled as real property.
  • The home must meet the HUD Code, which sets standards for design, construction, fire safety, energy efficiency, and durability.
  • The property should be located in an eligible rural area as defined by the USDA. You can check the USDA’s online map to determine if the location qualifies.

In addition to these requirements, borrowers must meet the standard eligibility criteria for a USDA loan, including income limits and creditworthiness.

Advantages of Buying a Manufactured Home with a USDA Loan

Here are some advantages of financing a manufactured home with a USDA loan:

  1. No down payment: Unlike conventional loans, USDA loans do not require a down payment, making it easier for individuals with limited savings to purchase a manufactured home.
  2. Lower interest rates: USDA loans typically offer competitive interest rates compared to other loan programs, providing borrowers with potential cost savings over the life of the loan.
  3. Flexible credit requirements: USDA loans have more lenient credit requirements compared to conventional mortgages, making it accessible to borrowers with lower credit scores or limited credit history.

Disadvantages of Buying a Manufactured Home with a USDA Loan

While USDA loans offer several advantages, there are some drawbacks to consider:

  1. Location restrictions: USDA loans are specifically designed for rural and suburban areas, so if you prefer to live in an urban or densely populated area, you may not be eligible for this type of financing.
  2. Income limits: USDA loans have income limits based on the area’s median income. If your income exceeds the limit, you may not qualify for a USDA loan.
  3. Property requirements: Manufactured homes financed with USDA loans must meet certain standards, including being permanently affixed and meeting the HUD Code.


In conclusion, it is possible to buy a manufactured home with a USDA loan. These loans offer attractive financing options, including no down payment and competitive interest rates. However, borrowers need to meet the specific requirements for a USDA loan, including property location, income limits, and creditworthiness. If you meet the eligibility criteria and are considering purchasing a manufactured home in a rural or suburban area, a USDA loan can be a great option to explore.