CALIFORNIA – The California Housing Finance Agency (CalHFA) announced that it is aligning with the U.S. Department of Agriculture and Lakeview Loan Servicing in allowing the purchase of existing manufactured homes effective May 4, 2025.
The rule change aims to give borrowers more home buying options, make housing more available, and improve the loan process.
The USDA loan is a government-backed mortgage designed to help homebuyers in eligible rural and suburban areas purchase homes with 0% down payment.
These loans are part of the USDA‘s mission to promote homeownership in communities where conventional financing options may be limited.
Changes to the financing
Previously, USDA loans had strict limitations on financing manufactured homes. The new expansion introduces the following changes:
- Existing manufactured homes are now eligible if they meet certain safety and quality standards.
- Single-wide and double-wide manufactured homes are now approved nationwide.
- Financing is now available for energy-efficient manufactured homes in nonprofit land-lease communities and on Tribal lands.
- Homes must meet updated eligibility criteria, including being built after January 1, 2006, and being permanently placed on an approved foundation.
- The dealer approval process has been simplified, making it easier to buy a home from a USDA-approved seller.
Manufactured homes could limit opportunities to build generational wealth
One critic of the rule change argued that while affordable housing is essential, including manufactured homes as an asset class could limit opportunities for families to build generational wealth.
Studies show that manufactured homes lose value over time if the owner doesn’t also own the land, unlike regular houses, which usually increase in value.
A $150,000 double-wide mobile home will depreciate by more than $50,000 in just five years.
According to HUD User, 28% of households own the housing unit only and not the land.
For more information about the new USDA manufactured home loan guidelines contact CalHFA Single Family Lending Division by phone 916.326.8033 or by email at [email protected].
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