Effective 05/05/2025 USDA/RD will allow financing for existing manufactured homes (previously only allowed new construction).

Standard Requirements & Restrictions

Loan Purpose

  • Purchase of existing manufactured home unit

Amortization Term
30-Year Fixed

Geographic Restrictions

  • Effective for submissions to the Agency on and after 05/05/2025: Existing manufactured homes are permitted in all 50 states.

Loan Limits

  • The subject property address must be evidenced as eligible via the USDA website. USDA regularly updates their maps and eligibility areas for the RD Program which is why it is always best practice to check eligibility for each individual property address.
  • For area income limits by county, refer to the Employment & Income within this matrix. 


Interested Party Contributions
Maximum of 6% of the sales price towards buyer closing costs and prepaid items.

Large Deposits

All deposits not attributed to income must be sourced, regardless of the amount.

Reserves

Cash reserves are not required after closing; however, they are considered in the risk assessment. Borrowers should shoot for a minimum of one month’s reserves (total of one month of payment on the mortgage) not being used on the loan.

Eligible Borrowers

  • Are income-eligible;
  • Agree to personally occupy the dwelling as their primary residence;
  • Are U.S. citizens, U.S. non-citizen nationals, or qualified aliens;
  • Have the legal capacity to incur the loan obligation;
  • Have not been suspended or debarred from participation in Federal programs;
  • Have demonstrated both the willingness and the ability to repay the loan; and
  • Are purchasing a property that meets all program criteria

Non-Occupant Co-Borrowers

Not permitted. Applicants must agree to personally occupy the dwelling as a principal residence.

Non-Purchasing Spouse
The income of an applicant’s spouse will be included in the calculation of annual income.

Credit Scores / No Score

  • The minimum Credit Score is 620.
  • No score borrowers are not permitted.

DTI Ratios

Ratios are calculated by utilizing the repayment income. Borrowers must meet the standards for both the PITI and Total Debt (TD) ratios: 

  • PITI Ratio: 34%
  • Total Debt Ratio: 41%


If acceptable compensating factors can be documented to demonstrate the ability to repay, ratios may exceed 34%/41% with a debt ratio waiver, not to exceed 34% PITI/44% TD ratios on purchase transactions.

Multiple Financed Properties
Borrowers may retain an additional single-family home, provided the retained property is not financed by a USDA Guaranteed or Direct Loan and the borrower is qualified to own more than one home. 

Payoff Debt for Qualifying
Installment debt may be paid down to 10 months or less or the remaining debt and not be included in a borrower’s total DTI ratio.

Annual Household Income
Represents the entire household’s combined income. Income from all adult household members, including non-applicants, must be considered when computing annual income.

Income Limits

  • USDA Guaranteed provides a map to review the income limits for the counties in each state.


Rental Income
2 years’ history is required. Rents received less than 24 months are not eligible. 

Self-Employed Income

  • The borrower must have a 25% or greater ownership interest in the business. 
  • 2 consecutive years of Personal and Federal Income Tax Returns with all schedules are required.

Occupancy Types

  • Primary Residence only. 
  • Second Homes and Investment properties are ineligible.


Age of Existing Manufactured Home

  • Effective for submissions to the Agency on and after 05/05/2025: The manufacture date of home cannot exceed 20 years from the date of loan closing unless the unit and site are already financed with a Section 502 loan.


Remaining Economic Life
The remaining economic life of the property must meet or exceed the 30-year term of the proposed loan.

Site Requirements
The unit must not have had any alterations or modifications to it since construction in the factory, except for porches, decks, or other structures which were built to engineered designs or were approved and inspected by local code officials.

Manufactured Home Eligibility Requirements
The following criteria outline an eligible unit for guarantee. The unit:

  • Must have a floor area of not less than 600 square feet. 
  • Must meet the Comfort Heating and Cooling Certificate Uo Value Zone for the location according to Attachment 9-A and Attachment 9-B (HB-1-3550).
    • All new manufactured homes built to the FMHCSS are provided with a Comfort Heating and Cooling Certificate. This certificate (which may be combined with the Data Plate) is affixed in a permanent manner near the main electrical panel or other readily accessible and visible location inside the unit. The certificate specifies to FMHCSS Uo Value zone of the home as Zone 1, 2, or 3. (The U/O Value Zone Map on the certificate does not apply.)
    • Appraiser will note the requirements have been met in the appraisal.
  • Must not have had any alterations or modifications to it since construction in the factory
    • No attached garages
    • No attached decks/porches (must have been built to engineered designs or were approved and inspected by local code officials)
  • Must have towing hitch and running gear removed.
  • Must be classified and taxed as real estate.
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