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What are USDA Manufactured Home Loan Guidelines?

December 1st, 2023 by Sean Stephens

What are USDA Manufactured Home Loan Guidelines? How does the USDA Existing Manufactured Home Pilot Program Work?

While it is true that the USDA Single Family Housing Guarantee Loan Program does not generally permit loans for existing manufactured homes, the USDA Existing Manufactured Home Pilot Program provides an exception to this rule in certain eligible states.USDA Loans for Manufactured Homes Florida, Texas, Tennessee, Alabama

Last week we discussed Conventional, VA, FHA, and USDA manufactured home loan programs side by side. In today’s short video, we will focus on the details of the USDA Existing Manufactured Home Pilot Program and review eligible states, discuss qualifying parameters, and explain additional USDA Manufactured Home Loan Guidelines.

Remember, if you have not yet done so, make sure to download our “USDA Blueprint for Success” 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.

Pilot Program Background – USDA Manufactured Home Loan Guidelines

The USDA Existing Manufactured Home Pilot Program states:

“According to 7 CFR 3550 and 3555, new manufactured homes are eligible for financing through the Section 502 Single Family Housing (SFH) Direct and Guaranteed Loan Programs. Existing manufactured homes are not eligible unless the home is already financed through Rural Development (RD) (7 CFR 3550.52(e)(l); 3550.73(b); 3555.208(b)(3)). Under the existing manufactured housing pilot, which was initially implemented on August 12, 2016, RD has waived the regulatory restrictions cited above and will finance existing manufactured homes in the pilot states even if the home is not currently financed by RD.”

Property Requirements – USDA Existing Manufactured Home Pilot Program

How does the USDA Existing Manufactured Home Pilot Program Work

There are several requirements that must be met in order to be eligible for financing under the pilot program. If all pilot conditions are met and the applicant is eligible, then the loan request can be filed. Existing manufactured homes and new units that have been on a dealer’s lot for more than 12 months must meet the following criteria:

  • The unit must have been constructed on or after January 1, 2006, in conformance with the Federal Manufactured Home Construction and Safety Standards (FMHCSS), as evidenced by an affixed Housing and Urban Development (HUD) Certification Label.
  • Inspection has been met using one of two of the below methods:
    • Form HUD-309, “HUD Manufactured Home Installation Certification and Verification Report” completed in accordance with 24 CFR 3286.511 by a qualified party as follows:
      • A manufactured home or residential building inspector employed by the local authority having jurisdiction over the site of the home, provided that the jurisdiction has a residential code enforcement program;
      • A professional engineer;
      • A registered architect;
      • A HUD-accepted Production Inspection Primary Inspection Agency (IPIA) or a Design Approval Primary Inspection Agency (DAPIA); or
      • An International Code Council (ICC) certified inspector.
  • Obtain a certification that the foundation design meets HUD Handbook 4930.3, “Permanent Foundations Guide for Manufactured Housing (PFGMH).” The foundation certification must be from a licensed professional engineer, or registered architect, who is licensed/registered in the state where the manufactured home is located and must attest to current guidelines of the PFGMH. The certification must be site specific and contain the engineer’s or registered architect’s signature, seal and/or state license/certification number. This certification can take the place of Form HUD 309.
  • 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.
  • Guaranteed loan applications must be manually underwritten.

Manufactured Home Pilot Program in Texas and TennesseeAdditional Property Criteria – USDA Existing Manufactured Home Pilot Program

Please note that the applicant and the property must still meet all additional criteria for guaranteed loans which include, but are not limited to, the following:

  • The unit must have a floor area of not less than 400 square feet;
  • The unit must meet the Comfort Heating and Cooling Certificate Uo Value Zone for the location;
  • The towing hitch and running gear must have been removed;
  • The manufactured home must be classified and taxed as real estate;
  • The remaining economic life of the property must meet or exceed the 30 year term of the proposed loan; and
  • The unit replacement cost coverage must be equal to the insured value of the improvements or the unpaid principal balance with deductible(s) of up to but not exceeding the greater of $1,000 or one percent (1 %) of the policy.

For greater details surrounding the requirements of the pilot program, visit USDA Dept. of Agriculture or contact our office directly with additional questions.

State Eligibility – USDA Existing Manufactured Home Pilot Program

What is USDA Existing Manufactured Home Pilot Program? USDA Approved lender in Texas, Tennessee, Florida and AlabamaMetroplex Mortgage Services, Inc. is a USDA Approved Lender licensed in Florida, Alabama, Tennessee and Texas. I have listed all of the pilot program eligible states below and because this list also includes Texas and Tennessee, we are able to help those potential applicants purchase existing manufactured homes in Texas and Tennessee under the USDA Existing Manufactured Home Pilot Program.

Eligible States include Colorado, Iowa, Louisiana, Michigan, Mississippi, Montana, Nevada, New Hampshire, New York, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.


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!

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Don’t forget to download our USDA Blueprint for Success with this link.

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