USDA Rural Development Expands Loan Eligibility to Manufactured Homes

Great news for People interested in purchasing an existing manufactured home in rural Michigan! You now have more opportunities for financing through USDA Rural Development’s low-interest, no-down-payment home loan programs. Michigan is participating in a pilot program that makes existing manufactured homes constructed after January 1, 2006, eligible for USDA home loans. Previously, only new manufactured homes qualified for these loans.

Here are some requirements when using a USDA home loan for an existing manufactured home:

  • Have a floor area of at least 400 square feet
  • Be inspected utilizing U.S. Department of Housing and Urban Development (HUD) Form309 Manufactured Home Installation Certification and Verification Report
  • Have no alterations or modifications since it was manufactured
  • Towing hitch and running gear must have been removed
  • Unit must be taxed as real estate
  • Remaining economic life must meet or exceed 30 years