The USDA Guaranteed loan program has clarified a guideline that has long been left to individual interpretation. RD Instruction 1980-D restricts applicants from owning more than one or ... multiple homes.
This guideline has been an issue for a long time. Most of the guidelines for this loan are the same as or derived from FHA Guidelines. So why has there always been a disconnect? As with any company, the regulations are thick and always changing, and employees are not trained. So, one office will allow ownership of another home and a different office will not.
RD AN No. 4454 has just addressed this. The Answer is:
Loan applicants are limited to retaining ownership in one dwelling other than the one associated with the loan request. To retain ownership of the dwelling and meet this eligibility requirement, the retained dwelling must be outside of the applicants local commuting area OR not be structurally sound, functionally adequate.
Manufactured homes that are not anchored on a permanent foundation are not considered structually sound and functionally adequate.
I hope this helps to clarify and or define the issue. You probably know more now than the underwriter. Refer them to the AN number above.