How California Buyers Can Use USDA Loans for Manufactured Homes in Parks—Even Without Owning the Land

In a big win for affordable housing, the USDA has expanded its loan eligibility rules in a way that could dramatically benefit California buyers of manufactured homes. As of January 2025, you no longer need to own the land where your home will be placed to qualify for a USDA-backed loan—opening new possibilities for families looking to live in mobile home parks throughout California.

What Changed With USDA Loans for Manufactured Homes?

Historically, USDA loans for manufactured homes were only available if the buyer also owned the land and the home was permanently affixed to it. But under a new federal rule effective in 2025, USDA financing is now available for homes placed on leased land, as long as the lease meets specific long-term criteria.

This is especially important for buyers in California, where placing a manufactured home in a mobile home park is far more common than purchasing land outright. Parks offer a more affordable entry point, especially in high-cost markets like Los Angeles, San Jose, San Diego, and Fresno.

What Kind of Lease Qualifies?

To qualify for USDA loans for manufactured homes under the new guidelines, the land lease must be long-term—typically 50 years or more—or renewable in a way that provides stability similar to homeownership. The lease must be documented, transferable, and legally enforceable to meet USDA criteria.

This shift recognizes the reality that many Americans live in communities where leasing land is the norm. In California, this includes hundreds of mobile home parks where residents own their homes but lease the space beneath them.

Why This Matters for California Buyers

California faces some of the highest housing costs in the nation, making manufactured homes in parks a practical and increasingly popular option. Until now, buyers using USDA loans were excluded from this market unless they could afford both the home and the land.

With this new rule, low- to moderate-income buyers can now explore USDA loans for manufactured homes in mobile home parks, often with no down payment required. This is a game-changer for many families looking for affordable paths to homeownership.

How to Take Advantage of This New Rule

If you’re considering buying a manufactured home in a California park, here are a few steps to help you get started:

1. Find a USDA-eligible area. While many California cities have eligible pockets, rural and suburban areas typically qualify.
2. Check the lease terms. Make sure the mobile home park offers long-term or renewable leases that align with USDA guidelines.
3. Work with an experienced lender. USDA loans for manufactured homes have unique requirements. Smart Money Mortgage can help you navigate the process and determine if you qualify.

Explore Your Options

At Smart Money Mortgage, we specialize in USDA loans for manufactured homes in California, including those placed in parks. If you’re ready to explore your options—or just have questions—we’re here to help.

Call us at (866) 900-6868 or visit smartmoneymortgage.com to learn more.