USDA Now Finances Existing Manufactured Homes – What You Need to Know
May 14, 2025
Big news for homebuyers in rural areas: The USDA is now allowing financing on existing manufactured homes —a change that opens the door for more affordable homeownership options with 100% financing and no down payment.
What Changed?
In the past, USDA loans were limited to newly constructed manufactured homes. Now, homes built on or after January 1, 2006 are eligible—provided they meet HUD code and are located in USDA-eligible rural zones.
Key Benefits of USDA Financing for Manufactured Homes
- Zero Down Payment: 100% financing is available.
- Wider Inventory: Buyers can now consider existing manufactured homes, not just new ones.
- Affordable Monthly Payments: USDA loans offer competitive interest rates and lower insurance costs.
Who Qualifies?
This update is great for:
- First-time homebuyers
- Those with moderate or lower incomes
- Buyers looking in USDA-eligible rural areas
Important Requirements
- The home must have been built on or after January 1, 2006.
- It must meet HUD safety and construction standards.
- The property must be located in a USDA-eligible area.
What to Do Next
If you're interested in taking advantage of this update:
- Find a manufactured home built in 2006 or later.
- Check if it's in a USDA-approved zone.
- Connect with a USDA-approved lender to begin the prequalification process.
Ready to Get Started?
At Kentuckiana Mortgage Group, we help buyers throughout Southern Indiana and Kentucky navigate the USDA loan process with ease. Contact us today to see if you qualify for this affordable path to homeownership!
