USDA 502 Direct and Modular Homes

[Anonymous]

Has anyone been successful in using a 502 Direct loan for the purchase of a new modular?

My husband and I are trying to go this route but we are told that the USDA rules for disbursement of funds for a modular is this: They will pay what is needed for the deposit (depending on the amount) at the time the home is ordered, at the time the home is delivered they will pay up to 50% so for example if the deposit was 25% then they would pay another 25% at time of delivery, once the home is completely finished and ready for move in they will pay the remaining 50% .  The problem is that none of the modular dealers will agree with this, they all want to receive payment in full at the time of delivery.

[Imperfectfuture]

Buy an already built modular?

[Imperfectfuture]

Or, find someone that does not expect full payment before move in. And believe me, they will cave.

[Anonymous]

It has to be a brand new modular per USDA rules plus we already got a contract on a lot before we were told about the payment disbursement. We have contacted every modular home dealer in this state and and none of them will agree to the disbursement.

Thank you for responding!

[Imperfectfuture]

I am sure there is a solution for you. Just keep trying. I saw no requirement brand new as in built to factory specs. I saw that older units prior to 77 are not energy efficient. So, go over with a realtor again.

Edit, you are correct.  It is better to get house?  They have that payment for a reason, go over everything again with your worker.