USDA Construction Loans for Manufactured and Modular Homes

A Rural Development loan that is similar to an FHA loan provided by the US Department of Agriculture (USDA).

Apply Today

What are USDA Loans?

The US Department of Agriculture (USDA) offers a Rural Development loan that is similar to an FHA loan. The loan is guaranteed by USDA, so the lenders can offer more favorable terms. USDA loans do not have a down payment requirement, and will loan up to 102% of the home’s value. USDA’s Rural Development’s mission is to improve the quality of life in rural communities by providing loans for housing and community facilities. Many of these areas defined as rural communities are underserved by mortgage lenders, and as a result, the people living in those communities may not have the choices that others have when it comes to obtaining a mortgage.

So what are the advantages of a USDA loan? Quite simply, it is zero down payment and lower mortgage insurance requirements. Interest rates are comparable to most other traditional mortgage loans. USDA does charge a 1% upfront guarantee fee and monthly mortgage insurance of .35%. So for every $100,000 borrowed, the upfront fee is $1000 and the monthly premium is $29. However, USDA does allow you to include the upfront fee in your loan, and the $29 is added to your monthly payment.

So how do you qualify for a USDA rural development loan?

  • Meet income-eligibility
  • Agree to personally occupy the dwelling as their primary residence
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Have the legal capacity to incur the loan obligation
  • Have not been suspended or debarred from participation in federal programs
  • Demonstrate the willingness to meet credit obligations in a timely manner
  • Purchase a property that is within the USDA rural boundary areas

To meet income requirements USDA requires that total household income be at or below the median income for the state and county where the property is located. You can check whether you meet the income eligibility requirements by clicking here:

Note that this is total household income, not just the person on the USDA loan. You must document income for all who will live in the home.

USDA Manufactured and Modular home construction loans

Countryplace offer the USDA loan for new construction to install a manufactured or modular home on property you are purchasing or already own. These construction loans can be obtained with zero down payment. This is a very unique product that most lenders do not offer on manufactured and modular homes. The property must be designated as being within the rural boundary areas for USDA loans. You can check if your property is eligible at the link above.

If you are looking to install a new manufactured or modular home on property you are purchasing or already own, please contact one of our experienced loan officers to get started on your pre-qualification today!

Ready to start? We've got the right product for you.

We Are CountryPlace Mortgage

CountryPlace Mortgage is the nation's premier lender for manufactured, modular, and mobile homes. We offer a one-time close construction loan for new homes. We make financing or refinancing your home simple and easy. If you own a manufactured or mobile home, or are thinking about purchasing a new or existing home, Countryplace Mortgage should be your lender of choice. We can finance your manufactured or mobile home whether it's tied to the land or in a mobile home park.

Founded in 1995, Countryplace Mortgage is a direct lender with both Fannie Mae and FHA. That means that we can offer you the most competitive rates, with down payments as low as 3.5%. When financing a manufactured, mobile, or modular home, it is important that you are working with a mortgage professional that understands these unique properties. Whether it's a chattel (home-only), land/home package, or construction loan we have the expertise to help you navigate today's challenging mortgage process. Many of our Loan Officers have several years experience originating manufactured and mobile home loans.