Can you buy a Manufactured Home with a No Down Payment USDA loan?
How do you purchase a manufactured home with a USDA loan?
I recently discussed the differences between manufactured and modular homes along with the available mortgage options, but today we are going to be very specific and talk about how it can be possible to qualify for a manufactured home with a no down payment USDA loan.
However, before we get started, don’t forget to take advantage of our Second Chance Service which is a great way to get access to an expert second opinion which can be especially helpful for those recent loan denials or if you are just in need of guidance on how to make the most out of your home loan qualification.
Just call or email to discuss your scenario and let us show you the “Metroplex” difference!
800-806-9836 Ext. 280
Can you buy a Manufactured Home with a USDA loan?
As a starting point, the USDA handbook defines a manufactured home as follows:
“Manufactured housing units are single-or multi-width units constructed partially off-site and then transported to a site to be completed and attached to
a permanent foundation. Manufactured homes are built to different construction standards and codes and have different inspection requirements than those manufactured structures generally referred to as “modular” or “panelized” homes.”
Additionally, USDA loans for existing manufactured homes are extremely limited because the guidelines state that a “purchase of an existing manufactured home is not permitted, unless it is a purchase of an existing Rural Development Section 502 direct loan or guarantee” which means that in order to purchase an existing manufactured home that is not part of any pilot program, it must already be secured by either a USDA Guaranteed or Direct loan, which can be a tremendously rare scenario.
However, you can purchase a new manufactured home with a USDA loan and guidelines state the following:
“Purchase of an eligible new unit, transportation and set-up costs, and purchase of an eligible site if not already owned by the applicant” provided the manufactured home has not been “installed, or occupied at any other site or location.”
Further, “the manufactured home must be classified and taxed as real estate” which translates to the home being on land that is owned because the USDA mortgage must cover both the manufactured home and land where it is located.
“Manufactured units may be moved only from the manufacturers or dealer’s lot to the site on which the unit will be guaranteed. This type of unit is eligible as long as the purchase agreement is dated within 12 months of the date the unit was manufactured.”
- “The date of manufacture is available on the factory installed plate on the unit.”
- “Manufactured home units with a manufacture date exceeding 12 months of the purchase agreement contract will be ineligible for a guaranteed loan.”
While today’s video was meant to give you a summary of this unique part of the program, it is important to remember that minimum credit and qualifying conditions will apply and that additional property conditions are required when you purchase a manufactured home with a no down payment USDA construction loan.
For any USDA manufactured home questions or qualifying scenarios, we are here as a resource, so just call or email to discuss your USDA scenario and let us show you the “Metroplex” difference!
800-806-9836 Ext. 280
I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!