Breaking Barriers: USDA Broadens Loan Guidelines for Manufactured Housing

June 16, 2025
Borrowers in rural communities now have expanded financing options, thanks to the USDA’s updated loan guidelines. For the first time, existing manufactured homes may be eligible for USDA-guaranteed loans. Previously, only new manufactured homes purchased through approved dealers qualified for USDA financing. Under the new policy, homes may now be eligible as long as they […]

Borrowers in rural communities now have expanded financing options, thanks to the USDA’s updated loan guidelines. For the first time, existing manufactured homes may be eligible for USDA-guaranteed loans.

Previously, only new manufactured homes purchased through approved dealers qualified for USDA financing. Under the new policy, homes may now be eligible as long as they were manufactured within 20 years of the loan’s closing date.

To meet USDA requirements, manufactured homes must be permanently affixed to real estate and classified as real property. Converting the home’s title from personal to real property is a necessary step—and the process varies by state.

These changes were announced in Procedure Notice 640 and represent an important opportunity to support affordable housing access in rural areas.

Need help navigating USDA’s updated manufactured home guidelines?
Propel can help ensure your loan origination process is fully compliant and optimized for success. Contact us at info@asurity.com to learn how we can support your team.

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