USDA Manufactured Home Loans in Texas
Quick answer: A USDA Guaranteed loan can finance a manufactured home in Texas if the home and its land are one real property, the home sits on a permanent foundation, it carries its HUD label and data plate, and it meets USDA's age, size and installation rules. New homes must come straight from the dealer or factory to your site. Existing homes must never have been installed on another site. All loans subject to credit and property approval.
Manufactured homes are common in eligible parts of Texas, from the Hill Country to East Texas and the Panhandle. USDA's rules for them are specific, and most problems come from a home that was moved, altered, or never converted to real property. Check these points before you make an offer.
Does USDA finance manufactured homes?
Yes. USDA's Chapter 13 allows new and existing manufactured homes when the unit and the land are financed together as real estate and the home meets USDA's standards.
A manufactured home is built to the federal Manufactured Home Construction and Safety Standards (the HUD code) and has a HUD certification label. That's different from a modular home, which is built to local building codes. USDA treats modular homes like site-built homes, so the manufactured home rules below don't apply to them.
What are the USDA rules for a new manufactured home?
A new home must never have been installed or lived in elsewhere, go straight from the factory or dealer lot to your site, and meet USDA's foundation, size, energy and age rules.
- New unit in stock, never installed or occupied at another site
- Moved only from the manufacturer's or dealer's lot to your site
- At least 400 square feet of floor area
- Permanent foundation built to HUD's Permanent Foundation Guide for Manufactured Housing
- Meets the thermal (Uo value) zone for where it will be placed, certified by the builder
- Manufactured within 12 months of the loan closing, with the data plate inside the home
- Purchased through a licensed manufactured home dealer, with manufacturer warranties identified by serial number
The loan can cover the home, eligible options, transportation, set-up, site development and the land, as itemized in the dealer's cost breakdown.
What are the rules for an existing manufactured home?
An existing home must never have been installed on a different site, sit on a certified permanent foundation, and be within USDA's age limit.
- Never previously installed on a different homesite
- At least 400 square feet of floor area
- On a permanent foundation that meets the manufacturer's and HUD installation standards, with a foundation certification
- HUD certification label and HUD data plate both present
- Manufactured within 20 years of the loan closing, unless the home and site are already financed with a USDA Section 502 loan
- No alterations since leaving the factory, except porches, decks or similar structures built to engineered designs or approved by local code officials
- Meets the thermal zone for its location
What makes a manufactured home ineligible?
USDA won't back loans for a home without an eligible site, a home that was moved from another site, or one without proper labels or foundation.
| Situation | Why it fails |
|---|---|
| Home only, no land | The unit must be bought with an eligible site |
| Home moved from another site | Only moves from the factory or dealer lot are allowed |
| Missing HUD label or data plate | USDA needs both as evidence of the federal standards |
| Tow hitch or running gear still attached | Not allowed under USDA's rules |
| Unapproved additions | Only engineered or code-approved porches and decks are allowed |
| Older than USDA's age limit | Existing units must be within USDA's age limit at closing |
| Furniture in the price | Furniture can't be financed. Certain items listed in USDA's handbook, such as standard appliances sold with the home, may be included; your lender will confirm what's eligible |
How does real property work for manufactured homes in Texas?
USDA requires the home and land to be classified, zoned and taxed as real estate, secured by one recorded mortgage or deed of trust and covered by standard title insurance.
USDA requires the home and land to be taxed as real estate and covered by one mortgage (HB-1-3555, Chapter 13). Your title company confirms the home's Texas ownership records and what's needed to close it as real property. Start that check early, because missing paperwork from a past owner can take a while to sort out.
Can I build with a new manufactured home?
Yes. USDA's single-close construction loan can include manufactured home construction, with the dealer and installer meeting USDA's builder requirements.
See USDA construction loans in Texas for how single-close works, and confirm the address on the USDA eligibility map before you choose land. Ask Danny Nassar, NMLS 220172, which manufactured home transactions Canopy Mortgage currently offers.
Source: USDA Handbook HB-1-3555, Chapter 13 (13.8 to 13.11). All loans subject to credit and property approval.
Frequently asked questions
Can I get a USDA loan for a mobile home?
USDA uses the term manufactured home. Homes built to the HUD code and meeting USDA's rules on foundation, site, labels, age and real-property status can qualify.
Can I use a USDA loan for a manufactured home on land I already own?
Possibly, as part of a single-close construction loan that includes a new unit and the land. Ask Danny about your specific situation.
Is a modular home a manufactured home?
No. Modular homes are built to local building codes, and USDA treats them like site-built homes.
Can a manufactured home that was moved qualify?
Generally no. A new home can only be moved from the factory or dealer lot to your site, and an existing home must never have been installed on a different site.
Talk with Danny about your Texas USDA loan
Tell Danny the county you're buying in and who lives in your household. He'll walk you through the USDA rules that apply to you and the next steps.
All loans subject to credit and property approval.