does a usda loan cover manufactured homes

Yes, USDA loans do cover manufactured homes. These loans are designed to help low to moderate-income families in rural areas achieve the dream of homeownership. With a USDA loan, borrowers can not only purchase traditional site-built homes but also manufactured homes that meet certain requirements.

Requirements for Manufactured Homes to Qualify for USDA Loans

In order for a manufactured home to qualify for a USDA loan, it must meet the following requirements:

  • The home must be new and constructed after 1976.
  • It should be permanently installed on an eligible site.
  • The home must meet the HUD Code and be classified as real estate.
  • The site on which the manufactured home is placed must be designated as an eligible rural area by USDA.
  • The home should be the borrower’s primary residence.
  • It should have adequate insulation and meet the thermal and site standards set by the HUD Code.
  • The home must have a floor area of at least 400 square feet.
  • It should be connected to permanent utilities, including water, sewage, and electricity.

If a manufactured home meets these requirements, it becomes eligible for financing through a USDA loan.

Benefits of USDA Loans for Manufactured Homes

USDA loans offer several benefits for those looking to finance a manufactured home:

  1. No down payment: One of the most significant advantages of USDA loans is that they do not require a down payment. This allows borrowers to purchase a manufactured home without having to pay a substantial lump sum upfront.
  2. Low interest rates: USDA loans typically offer lower interest rates compared to other loan options. This can result in significant cost savings over the life of the loan.
  3. Flexible credit requirements: USDA loans have more flexible credit requirements compared to conventional loans, making them accessible to borrowers with less-than-perfect credit scores.
  4. No private mortgage insurance (PMI): Unlike FHA or conventional loans, USDA loans do not require borrowers to pay private mortgage insurance. This can save borrowers hundreds of dollars each month.
  5. Fixed-rate options: USDA loans offer fixed-rate options, providing stability and predictability in monthly mortgage payments.

These benefits make USDA loans an attractive financing option for those looking to purchase a manufactured home in eligible rural areas.

Comparison of USDA Loans and Other Loan Programs for Manufactured Homes

Here is a comparison of USDA loans with other popular loan programs for manufactured homes:

Loan Program Down Payment Requirement Interest Rates Credit Requirements PMI Requirement
USDA Loans No down payment required Low interest rates Flexible No PMI
FHA Loans Minimum 3.5% down payment required Competitive interest rates Minimum credit score of 500 PMI required
Conventional Loans Minimum 5% down payment required Varies based on credit score Good credit score required PMI required if down payment is less than 20%


In conclusion, USDA loans do cover manufactured homes that meet specific requirements. These loans offer numerous advantages, including no down payment, low interest rates, flexible credit requirements, no PMI, and fixed-rate options. If you are considering purchasing a manufactured home in a rural area, a USDA loan can be a viable financing option to make your dream of homeownership a reality.