New Loan Program Encourages Modular Home Ownership

There are a number of programs and assistance opportunities available to families seeking to purchase a modular home. One that perhaps doesn’t get the attention it deserves is the single-family direct home loan offered through the United States Department of Agriculture (USDA).

These loans are specifically designed to help lower income applicants become homeowners. They are available for both site-built and modular homes set on a permanent foundation, as long as the property is not larger than five acres.

The best part? No down payment is required. None. That’s a huge advantage over even FHA loans that expect 3.5% down. The loans are financed for 33 years at an interest rate of 3 percent, with payments based on adjusted family household income. Taxes and insurance are included in the monthly payment.

As you might expect from the USDA involvement, these loans are intended only for rural areas – in this case, communities with a population of less than 35,000 people. Other restrictions: the house cannot exceed 1,800 square feet, and must pass all local, state and federal building codes (which is certainly never an issue when you work with Ma Williams).

One of the goals of the program is to encourage first-time home ownership, which is why these family housing direct home loans are available only to people who do not own a home already.

The USDA also offers home repair loans, financed for 20 years at a 1% interest rate.

To find out more about these programs and any qualifying restrictions, you can visit the USDA government website at:

If you do not qualify because of the location of your modular home, Ma Williams can help you secure financing through other sources. Click here for more details.