USDA Construction Loans for Manufactured Homes in Florida, Texas, Tennessee, and Alabama
USDA Construction Loans for Manufactured Homes in Florida, Texas, Tennessee, and Alabama
How can you qualify for a new manufactured home with a USDA no down payment construction loan?
While I have previously discussed that it is possible to purchase a new manufactured home with a USDA no down payment construction loan, today’s video will take you through the process and steps from qualification to closing!
Remember, if you have not yet done so, make sure to download our “USDA New Construction Guide” with the link below. This educational resource will walk you through the USDA new construction process and the USDA new construction loan requirements. It is designed for homebuyers, builders, and Realtors alike.
The combination construction to permanent loan section of the USDA guidelines states the following in relation to the single-close program: “A single-close loan combines the features of a construction loan, which is a short-term interim loan for financing the cost of construction, and the traditional long-term permanent residential mortgage.”
In addition, it states under Eligible Loan Costs that “[t]he loan will be used to finance the construction of a new single family housing residence, which can include modular and manufactured home construction” which shows you that the USDA single-close program does allow for manufactured homes under these conditions.
How do you qualify for a Manufactured Home with a No Down Payment USDA Construction Loan?
#1. USDA Loan Qualification
The first step in the process is to secure proper qualifications. USDA qualifications for property eligibility does remain the same, which means that the manufactured home must still be located within a USDA designated eligible area.
USDA also has county income limits based on household sizes that apply, but since USDA has recently increased these county limits, they provide for healthy income levels to work on a variety of price ranges.
As a USDA approved lender, we will work with your budget to establish an overall eligibility. We will then help you through the entire process from contract to closing.
#2. Manufactured Home Dealer
Once a budget has been set, you will then work with a manufactured home dealer to discuss all the floor plans, pricing, and available options. Unless we have already approved the dealer, they will need to be approved in accordance with USDA single-close construction requirements.
#3. Land Selection
You can use land that is already owned, build on land that is owned by the dealer, or you can choose to purchase land for the home to be built; however, a manufactured home “must be classified and taxed as a real estate.” This means that it must be on owned land and not on land that is rented or leased.
#4. Preparing for Closing
All the below conditions must be satisfied before closing is scheduled:
- Home has been selected
- The land has been identified
- All contracts have been executed
- Loan application has been completed
- Appraisal and underwriting is complete
- USDA commitment is obtained
Closing does happen prior to the start of construction, which is then followed by draw payments disbursed during the build-out phase.
As a USDA and VA Approved Lender in Florida, Tennessee, Alabama, and Texas, let our experience and expertise go to work for you!
Just call, email, or text to discuss your scenario and let us show you the “Metroplex” difference!
Toll Free: (800) 806-9836 X 280
Call/Text: (863) 451-3032
SeanS@MPLX.org
Don’t forget to download our USDA Blueprint for Success with this link.
