Part 6: USDA Manufactured Home Loans – Frequently Asked Questions (FAQ)

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USDA Manufactured Home Loans – Frequently Asked Questions (FAQ)

How do you qualify for a USDA Manufactured Home Loan in Florida, Texas, Tennessee, and Alabama?

Whether you're just starting the process or working through the finer details, today’s FAQ is designed to provide clear answers on some of the most common questions we receive and include USDA loan basics, property requirements, and special situations unique to manufactured home financing.

Section 1: General Program Basics
• Can I purchase a Manufactured Home with a USDA loan? Yes! USDA loans allow for the purchase of eligible manufactured homes with No Down Payment.
• Does USDA allow both new and existing manufactured homes?! Yes. USDA loans can now finance both new and certain existing manufactured homes, provided they meet all guideline requirements.
• How is a USDA Manufactured Home Loan different from a traditional USDA loan? Outside of any manufactured home specific requirements, all other USDA qualifying criteria such as credit, income, and area eligibility remain the same.
• What are the income limits for USDA loans? USDA income limits vary by household size and county. I have included a link below which provides updated USDA income limit information.
• Can you refinance a manufactured home with a USDA loan? Yes - if your current mortgage is already a USDA loan, you may be eligible for a Streamlined or Streamlined-Assist refinance, both of which do not require an appraisal.

Section 2: USDA Manufactured Home Loan Minimum Property Requirements
• Does USDA allow existing manufactured homes? Yes, as of May 5, 2025 USDA loans allow existing manufactured homes that meet certain property eligibility requirements.
• Are both singlewide and doublewide manufactured homes eligible for a USDA loan? Yes, both singlewide and doublewide manufactured homes are eligible as long as they have at least 400 square feet of floor space.
• Does the manufactured home have to be new? No, existing manufactured homes are now eligible provided they have a manufacture date that is within 20 years at time of loan closing.
• Can you buy a new manufactured home and land together with a USDA loan? Yes, you can purchase a new manufactured home and land together under the USDA Single-Close Construction Loan.
• Can you put a new manufactured home on land you already own with a USDA loan? Yes, this is also permitted under USDA Single-Close Construction Loans.
• What are USDA manufactured home loan foundation requirements? USDA Manufactured Home Loan foundations must be installed on a permanent foundation in accordance with the manufacturer’s requirements and HUD installation standards. Guidelines are presently published in the “Permanent Foundation Guide for Manufactured Housing (4930.3G)”.
• Are there location restrictions? A USDA manufactured home loan will only be permitted if the property is located within a USDA eligible area.
• Will USDA loans allow for a manufactured home that was moved from another location? No. Manufactured homes that have been previously installed at a different homesite are not eligible under USDA guidelines.

Section 3: Loan Structure & Costs
• Is a down payment required? No. USDA offers 100% financing with No Down Payment.
• Can sellers pay closing costs? Yes, USDA loans allow for a seller to pay up to 6% of the sales price towards buyer closing costs.
• Can you “roll-in” closing costs with a USDA loan? Yes—if the appraised value is higher than the sales price, you may be able to finance (“roll in”) closing costs up to the appraised value. This is not automatic and depends on your appraisal
• Are there monthly mortgage insurance fees? USDA does not charge traditional mortgage insurance, but it does include:
• A 1% Guarantee Fee (can be financed),
• And an annual fee (paid monthly as part of your payment).

Section 4: USDA Loan Process & Timing
• How long does USDA loan approval take? Timelines vary by lender. With an experienced USDA Approved Lender like Metroplex Mortgage Services, closings typically happen within 30 days from receipt of the contract.
• Do I need an appraisal for a manufactured home? Yes—unless you’re doing a Streamlined or Streamlined-Assist Refinance, which do not require one.
• Can I use gift funds? Yes. USDA loans allow gift funds to be used toward eligible costs.

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