Hello Spirithorse84,

I had to go back to our Usda agent or rep. to get clairification on the modular vs. manufactured issue. We are trying to do the direct Usda loan and it looks as if we are going to be successful. It may be different for you since you are in NC but when I ask yesterday which way we needed to go he told us that we could go either way either with a manufactured home or with a modular. If we purchase a modular it will need to come direct from the factory due to structual issues in the breaking down and transporting. A manufactured home can be a model home that comes direct from the dealers. We will have to deal with the appraisal issues too because we are in the country and not don't have a lot of neighbors around us.
Have you checked to see if you are eligible for the direct loan? If not I would do that. Also you might want to contact your Usda office directly if you haven't done that and discuss your problem with them there maybe somethig that they can suggest that will help you with your appraisal issues.
On the issue of the modulars and the extra money. When we first started looking several of the dealers that we went to indicated that the modulars would be about 10,000 dollars more. However that is not always true I have found three dealers that we can purchase a modular through for only $2,000 or 3,000 more and yes they are reputable dealers so you might want to do some more looking I'm betting that they are out there. You might try some of the small dealers many times they don't have as much overhead even though they may not have many homes on their lots they usually have several different lines of homes that they sale. Hopefully with this and the information that you have gotten from others on this site you will get your issues cleared up. I hope for the best for you.
One other thing in the last few days I had an appraiser who lives in my area answer a question that I didn't think was going to get anwsered. You might want to to back and read my question and her answer.
THANKS SO MUCH TO EVERYONE ON THIS SITE AS IT HAS BEEN A TREMENDOUS HELP!
Shar

Tracy Simms is correct. You can finance manufactured multi wide home thought USDA guaranteed program, but it has to be thru an approved retailer.

Financing on a true modular home is just like doing USDA financing on a stick built home. If you have any questions please feel free to contact me locally at 919-747-7930. Please leave me a message if you get my VM. Good luck with your house hunt!

Hey- I'm a broker with Keller Wiliams Realty-

I have dealt with many usda loans- & after talking with one of the lenders that go through usda- he has informed me that they do not finance mobile homes, only modulars. I've known this- but wanted to double check before I answered your question. I'm surpised with the multiple appraisal issue- If you were going through a mortgage broker who was outsourcing it- it may be an issue with them not clarifying usda guidelines. However, I don't know a lot about the situation so I cannot say anything for sure. If you'd like for me to get you in touch with the guy I use who I've closed all my usda loans with for clients, email me @ christinaland@kw.com and I'll get you that info. Hope this helps :) usda is a great 100% ltv program :)

Hi Spirithorse. I too am a homebuyer. It sounds to me like you are going through the Usda direct loan program. I can't help you with the first part of your question but I can help you with the second part. I believe that both the Usda direct loans and the Usda Guranteed loans require that the home be a modular and not a manufactured home. The difference is how they are attached to the land. Most manufactured homes have steel frames underneath them and are not removeable so acceptable under the Usda guidelines. If you could find one that the steel frame can be removed from then it would be acceptable. Most makers of manufactured homes also make the same home in a modular home. I have found that if you can find a smaller reputable dealer then often you can get that home for maybe just a couple of thousand more. Your modular do not have the steel frame so it is attached to a foundation differently. In fact, it has to be put on a foundation, basement, or something very similar. So yes what the bank appraiser told you is correct at least for that part.
One of the differences between Usda guranteed and direct loans is that with the guranteed is that you usually have to find a seperate lender for you construction part foundation, utilities, etc. then when the home is delivered the Usda guranteed will come in and pick up the whole loan. It doesn't make a whole lot of sense to me but that is how they do it.
This is a great site and there are many knowledgeable people here. Hopefully, they will be able to answer the rest of your question for you.

It appears that you can finance a NEW mobile home through USDA but they have a list of approved vendors. I have attached the link to the vendors belowfc. Also, your lender must be a USDA approved lender. The USDA also has a great website with informantion on their loan programs and the eligiblity requirements.
http://www.rurdev.usda.gov