USDA loans make homeownership possible for thousands of Americans in rural and suburban areas. These low-interest, 0% down payment mortgages aren't as well-known as their FHA or VA loan counterparts, but they include many perks that can make them a great option for eligible borrowers.
Backed by the U.S. Department of Agriculture, USDA home loans allow buyers to purchase manufactured and modular homes as long as they meet property and income eligibility (as determined by the USDA) and appraisal standards.
Below, we’ll cover the rules for getting a USDA loan for a manufactured, modular or mobile home.
Can You Get a USDA Loan for a Manufactured Home?
Yes, borrowers can finance a manufactured home with a USDA loan. To qualify, they must still meet general USDA requirements for property location and income limits. These guidelines vary by state, so be sure to check your local income limits and restrictions in your area before you apply.
You can use our free map tool to check a property's eligibility.
Are Mobile Homes USDA Eligible?
The terms manufactured and mobile home are often used interchangeably, but there’s an important difference when it comes to whether they’re eligible for USDA financing. Mobile homes are factory-built dwellings constructed before June 1976, whereas manufactured homes are built after that date under the Department of Housing and Urban Development (HUD) Code, meeting stricter federal safety, design, and energy-efficiency requirements.
Mobile homes are different from manufactured homes in that they have wheels, are not affixed to a permanent foundation and are not classified as real estate. Because these types of homes are considered personal property, they are not eligible for a USDA loan.
2025 USDA Manufactured Home Guidelines
To be able to buy a manufactured home with a USDA loan, you must meet the following guidelines:
HUD Certification Label
A HUD certification label (sometimes called a HUD tag) is required on every manufactured home purchased with USDA financing. This red label, usually affixed to the home’s exterior, verifies that the unit was built to federal construction and safety standards. Homes that are not up to HUD standards will not have a HUD label and won’t be eligible for USDA loan funding.
The label is usually found on the exterior of the home, typically at the lower corner of the end wall, on the back, or sometimes near a bedroom window. It is about 2 x 4 inches in size and looks like the following:
If the HUD label is missing, the HUD data plate might be sufficient proof.
Data Plate
The HUD data plate is basically the “birth certificate” of a manufactured home. You’ll usually find it inside the home, like in a kitchen cabinet, bedroom closet, or by the electrical panel. It shows when and where the home was built, plus important details about energy standards.
For a USDA loan, this plate helps prove the home is new enough to qualify and meets federal safety rules. If the exterior HUD label is missing, having the data plate or a replacement record from the Institute For Building Technology and Safety (IBTS), is usually enough for the lender to move forward with your financing.
It looks like the following:
Home Age and Construction
The requirements for manufactured home age and construction depend on whether the home is a new build or not.
If the home is brand new, it must:
Be built within the last 12 months (of your loan closing)
Never have been lived in
Only be moved from the manufacturer or dealer’s lot to the buyer’s site
If the manufactured home is existing, it must:
The unit must have never been previously installed on a different site
The home must have a manufacture date within 20 years of the loan closing date
You must also have a copy of all manufacturer warranties and dealer and contractor certifications.
Size Requirements
All manufactured homes must have an area of at least 400 square feet.
Limited Modifications
All manufactured homes must have no modifications other than porches, decks, or similar structures approved by local code officials.
Safety Standards
Manufactured homes must meet Federal Manufactured Home Construction and Safety Standards (FMHCSS). These regulations ensure that the housing is safe for occupancy and vary depending on where the home will be placed.
Location Requirements
The home must be installed on land in an approved, USDA-eligible area and affixed to a permanent foundation. The site must meet current floodplain requirements and include proper waste disposal systems and water access.
Tax Status
For tax purposes, the manufactured home must be classified as real estate, and its site must be zoned the same.
To ensure that manufactured and modular homes meet USDA guidelines, the property must undergo an appraisal to secure funding. The appraisal is also necessary for determining your maximum loan amount. The closing process for manufactured homes will also include title transfer and any necessary documentation.
Are Modular Homes USDA Eligible?
Like manufactured homes, modular homes are primarily constructed in a factory. They’re built-in prefabricated "modules," which are then moved to a specific location, where they are assembled and attached to a permanent foundation.
While manufactured homes are held to federal standards set by HUD, modular homes must conform to the local, state and regional building codes required for on-site homes, which means they will vary depending on the area.
There is also one important caveat for using a USDA loan to finance a modular home: You can't use the loan to buy land and then install a modular home on it. In other words, your modular home is only eligible for USDA financing after it's been built and installed in its permanent location.
Get Started Today
Whether you're interested in financing a manufactured home, modular home or purchasing an existing house in a rural area, a USDA home loan is worth considering.
Neighbors Bank can help with your homebuying needs. Get started online to check your USDA eligibility today.
Emily Kittle is an experienced underwriter with a strong background in risk assessment, training, and loan decision-making. She excels at solving complex mortgage challenges and guiding loans to closing using creativity and critical thinking.
