The USDA Single Family Housing program has introduced changes regarding the eligibility of existing manufactured homes for financing, starting from March 4th. Here’s what you need to know:

Eligibility for Existing Manufactured Homes:

Pilot Program: The USDA had a pilot program for financing existing manufactured homes in certain states, which has now been expanded to standard guidelines. Beginning on March 4, 2025, USDA will allow financing for existing manufactured homes built on or after January 1, 2006, in all states.

Regulatory Waivers: The USDA is extending waivers on regulatory requirements to facilitate this process. This is part of their effort to remove barriers that could hinder low to moderate-income homeowners from accessing affordable housing options.

Conditions for Eligibility:

Manufactured Home Age: The home must have been constructed on or after January 1, 2006, to comply with the Federal Manufactured Home Construction and Safety Standards (FMHCSS). This ensures the home meets certain safety and construction standards.

No Alterations: The unit should not have had significant alterations or modifications since it was built, except for minor additions like porches or decks that comply with local codes.

Foundation Certification: The foundation must meet the guidelines of HUD Handbook 4930.3, requiring certification by a licensed engineer or architect to ensure it’s a permanent foundation.

Loan Programs:

Guaranteed Loan Program: This program helps approved lenders provide loans with up to 100% financing for purchasing homes in eligible rural areas, now including existing manufactured homes under the new guidelines.

Direct Loan Program: While primarily aimed at new or construction-to-permanent loans, this program might also apply under the new regulations for existing manufactured homes, subject to the conditions mentioned.

Impact on Housing Supply: This change aims to boost the housing supply in rural America by making homeownership more accessible through manufactured homes, which are often more affordable.

Key Points to Remember:

Eligible Areas: The property must be located in an area designated as rural by USDA standards.

Income Limits: Applicants must meet income eligibility criteria which vary by area but are designed for low to moderate-income households.

Application Process: Interested applicants should contact USDA-approved lenders for eligibility checks and to proceed with applications. The official USDA eligibility site can help determine if a property is in an eligible area.

This policy change reflects USDA’s ongoing effort to make homeownership more attainable and to support rural housing markets by recognizing the value of existing manufactured homes. However, for the most accurate and current information or for specific local nuances, contacting a USDA-approved lender or visiting the USDA’s Rural Development website would be beneficial.