Big News for Kentucky Home Buyers: USDA Now Financing Manufactured Homes

Big News for Kentucky Home Buyers: USDA Now Financing Manufactured Homes!

Date: May 20, 2025

Manufactured home in rural Kentucky setting

A modern manufactured home option now eligible for USDA financing

Learn about the new USDA Rural Housing changes that now allow financing for manufactured homes in Kentucky. Discover eligibility requirements, benefits, and how to apply for affordable rural housing.

Introduction

Great news for Kentucky families looking for affordable rural housing options! As of May 5, 2025, the USDA has officially updated its Single-Family Housing Guaranteed Loan Program (SFHGLP) to include permanent financing options for certain manufactured homes. This game-changing policy update opens doors for many Kentucky residents who previously struggled to find affordable financing for manufactured housing.

For years, potential rural homebuyers found themselves in a frustrating position: they qualified for USDA's excellent terms but couldn't use the program when they fell in love with a manufactured home. Now, that roadblock has been removed, creating new pathways to homeownership across Kentucky's rural communities.

What's Changed?

The USDA Rural Development agency has recognized the critical need for affordable housing solutions and has permanently expanded their loan guarantee program to include existing manufactured homes that meet specific criteria. This change acknowledges manufactured housing as a viable, quality housing option for rural families.

Key Eligibility Requirements for Manufactured Homes

To qualify for USDA financing under the new guidelines, manufactured homes must meet the following criteria:

Requirement	Details
Installation History	Must be an existing unit never previously installed on a different homesite
Minimum Size	Floor area not less than 400 square feet
Modifications	No alterations since factory construction (except approved porches/decks)
Foundation	Must be on a permanent foundation per HUD standards
Energy Efficiency	Must meet Federal Manufactured Home Construction and Safety Standard for geographic area
Age Restriction	Manufacture date within 20 years from loan closing date
Certification	Must have HUD Certification label and HUD Data Plate
Classification	Must be classified and taxed as real estate

Important Restrictions to Know

The USDA will NOT guarantee loans for:

Units without an eligible site
Units not constructed to Federal standards
Units without proper permanent foundation
Furniture or movable personal property
Unapproved additions or modifications
Units being relocated from another site
Units older than 20 years (with some exceptions)
Units with remaining tow hitches or running gear

Benefits for Kentucky Rural Home Buyers

<div class="benefits-container"> <div class="benefit-card"> <h3>100% Financing</h3> <p>No down payment required, making homeownership more accessible</p> </div> <div class="benefit-card"> <h3>Competitive Rates</h3> <p>Access to market-competitive interest rates</p> </div> <div class="benefit-card"> <h3>Affordable Housing</h3> <p>Manufactured homes typically cost 10-35% less than site-built homes</p> </div> <div class="benefit-card"> <h3>Modern Options</h3> <p>Today's manufactured homes offer quality construction and amenities</p> </div> </div>

What This Means for Kentucky Families

This update is particularly significant for Kentucky, where:

Rural communities make up approximately 41% of the state's population
Manufactured housing represents about 14% of the state's housing stock
Housing affordability continues to be a challenge for many families

For families struggling with rising housing costs, manufactured homes offer a quality, affordable alternative to traditional site-built homes. With the USDA now offering financing options, the dream of homeownership becomes more attainable for thousands of Kentucky residents.

How to Apply for USDA Manufactured Home Financing

Step 1: Check Property Eligibility

First, verify that your desired location qualifies as "rural" under USDA guidelines. You can check eligibility using the USDA Property Eligibility Map.

Step 2: Meet Income Requirements

USDA loans are designed for low to moderate-income households. Income limits vary by county and household size. Check Kentucky income limits here.

Step 3: Find an Eligible Manufactured Home

Remember, the home must meet all the criteria outlined above, including age requirements and permanent foundation standards.

Step 4: Work with an Approved Lender

Contact a USDA-approved lender who can guide you through the application process. Find approved lenders in Kentucky.

Financing Example

Here's how USDA financing might look for a typical manufactured home purchase in Kentucky:

Home Purchase Price: $150,000
Down Payment: $0 (0% with USDA)
Loan Amount: $150,000
Term: 30 years
Interest Rate: 6.5% (example rate, actual rates may vary)
Monthly Principal & Interest: ~$948
Guarantee Fee: 1% upfront (can be financed)
Annual Fee: 0.35% of outstanding balance

Expert Insights

"This is one of the best financing opportunities available today," notes housing finance specialist JaCee DeMartino-Simms. "The USDA's recognition of manufactured housing as a viable option opens doors for many Kentucky families who otherwise might be priced out of homeownership."

Local mortgage expert Joel Lobb adds, "For rural Kentucky communities, this change represents a significant opportunity to address housing shortages while providing affordable options for first-time homebuyers and those on fixed incomes."

Resources for Kentucky Home Buyers

For more information on USDA manufactured home loans, check these valuable resources:

Conclusion

The USDA's policy update represents a significant advancement in affordable rural housing options for Kentucky residents. By extending financing options to include manufactured homes, the program acknowledges both the quality of modern manufactured housing and the critical need for affordable homeownership opportunities.

For many Kentucky families, this change could be the difference between continuing to rent and achieving the dream of homeownership. If you're considering a manufactured home in a rural area, now is an excellent time to explore your financing options through the USDA Rural Housing Guaranteed Loan Program.

About the Author: Joel Lobb is a Kentucky mortgage specialist with over 25 years of experience helping families achieve homeownership. Contact Joel today at (502) 905-3708 or visit Kentucky USDA Rural Housing Mortgage Loans for more information.

About Me

Your Trusted Kentucky Mortgage Expert I specialize in assisting Kentucky First-Time Homebuyers with mortgage loans, including FHA, VA, USDA & Rural Housing, KHC (Kentucky Housing Corporation), and Fannie Mae programs. With over 20 years of experience in the mortgage industry, I’ve helped more than 1,300 Kentucky families achieve their dream of homeownership or refinance their current mortgages to secure lower payments. Whether you’re a first-time buyer or looking to refinance, I am here to guide you through every step of the process with personalized attention, expert advice, and the best loan options available to fit your unique needs. Down Payment Assistance: For Kentucky first-time homebuyers, we still have down payment assistance available through KHC programs. These funds can make a huge difference in reducing upfront costs and making homeownership more accessible. Why Work With Me? Local Expertise: I know the ins and outs of Kentucky’s housing market and loan programs. Fast Approvals: I offer free mortgage applications with same-day approvals to keep the process moving quickly. Customized Loan Solutions: Whether you’re buying a home or refinancing, I’ll find the right loan program to fit your needs. Personalized Service: I treat every client like family, ensuring you’re supported and informed throughout the process. About My Website Visit my website for a wealth of resources tailored to Kentucky homebuyers. You’ll find: Step-by-step guides for first-time homebuyers. Information on loan programs like FHA, VA, USDA, and KHC. Tools to help you calculate potential payments and affordability. Blog posts with tips and updates on the Kentucky housing market. A secure portal to start your loan application and upload documents. Please Note: My website is not endorsed by the FHA, VA, USDA, or any government agency. It is an independent platform created to educate and assist homebuyers with expert advice and accessible tools. -- 1 - Email - kentuckyloan@gmail.com 2. Call/Text - 502-905-3708 Joel Lobb Mortgage Loan Officer - Expert on Kentucky Mortgage Loans www.mylouisvillekentuckymortgage.com 911 Barret Ave., Louisville, KY 40204 Evo Mortgage Company NMLS# 1738461 Personal NMLS# 57916 For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly. Licensing Info: Kentucky Mortgage Loan Only NMLS Personal ID: 57916 Company NMLS ID: 1738461 www.nmlsconsumeracces.org Equal Housing Lender Email ThisBlogThis!Share to XShare to FacebookShare to Pinterest Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA

Kentucky USDA Rural Housing Mortgage Loan Officer Expert..

I have helped over 1300 Kentucky families buy or refinance their home over the last 18 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.

I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you a competitive priced loan locally. Whereas most banks will offer offer you their one set of loan products. I have access to over 15 different mortgage companies to broker your loan through to get you competitive pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.

You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.

Give us a try or let us compare your options on your next mortgage transaction. Call/text me locally at 502-905-3708. Free Mortgage Pre-Qualifications same day on most applications.

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I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky. For the first time buyer, we offer Kentucky Housing or KHC loans with down payment assistance.

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Contacted him about buying a home and he was great to work with. I was moving to Louisville Ky to take a new job and he walked me through the entire process. He explained to me all the different options for FHA, VA, USDA mortgage loans and credit score requirements versus Fannie Mae. Since I was a first time home buyer I needed alot of help and guidance. I would definitely recommend him. Fast to respond and available to answer questions that I or my realtor had after hours.
Anderson Johnson April, 2018

We moved from Michigan to Northern Kentucky area and we were really impressed. We got a USDA loan no money down and closed in less than 3.5 weeks. We shopped around online with other lenders but Joel was always first to respond and his rates were just a little better than other lenders. He kept us informed through the process along with our realtor and there was absolutely no surprises like we heard from other co-workers and friends that they experienced in their loan process. We have already referred another co-worker to Joel . He's AWESOME!

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Wow, what a great loan officer. I was referred to him by our agent and he was great to work with. We used him for a USDA no money down loan in Shelby County and we were really impressed. We were afraid we could not buy a home since we did not have money saved for a down payment, but Joe l was able to get us a zero down loan and we even got our appraisal fee and good faith deposit back at closing. We actually got money back at closing!!! I Can't think him enough. Our family moved from our apartment in the south end of town to get our own home with 5 acres for our kids and 2 dogs, at a payment that is equal to our rent payment also. .Thanks Again Joel. May god bless you

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