Does USDA finance manufactured or factory-built homes?

USDA can finance manufactured homes under Section 502, but with extra conditions. A USDA Rural Development notice says that normally only new units qualify, though pilots have allowed certain existing homes built on or after January 1, 2006. Across these programs, the home must be classified and taxed as real estate. The towing hitch and running gear must be removed, the foundation must be certified to HUD guidelines, and the heating and cooling must suit the location. The home's remaining economic life must support the 30-year loan term. Pilot homes needed at least 400 square feet. Because pilots and rules change, ask a USDA-approved lender or your Rural Development office what currently applies to your home type.

Sources

• Unnumbered Letter: Section 502 Manufactured Housing PilotsUSDA Rural Development