What’s in the 21st Century ROAD to Housing Act?

The 21^st Century ROAD to Housing Act became law on July 11, 2026, enacting changes designed to improve access to housing by addressing bottlenecks in the process, encouraging access to small loan amounts, allowing manufactured homes to be built without a chassis, and limiting the number of homes large-scale investors can own.

Key takeaways:

• Congress passed a law aimed at making homeownership more attainable with provisions that encourage the construction of new homes.
• The law authorizes the construction of manufactured homes without a chassis to improve affordability.
• Other aspects of the law aim to improve access to appraisals and limit investor ownership of single-family homes.

Encouraging more construction

Title 2 of the law contains 13 sections, each encouraging the construction, renovation, or improvement of homes or investment in homes.

Among the notable sections:

• Provides grants to local governments to use preapproved housing designs, streamlining the construction of projects such as accessory dwelling units, duplexes, and townhouses.
• Offers grants for local governments to convert vacant commercial or industrial buildings into housing.
• Updates the formula used to calculate maximum loan limits for FHA mortgages used to buy multifamily homes.¹
• Gives the Department of Housing and Urban Development (HUD) tools to simplify compliance with the National Environmental Policy Act and streamlines the environmental review process for federally supported housing activities.

Changes for manufactured and modular homes

The new law allows states to choose whether to permit the manufacture of homes without a chassis.

Manufactured homes traditionally come with a permanent chassis for transport between sites if the owner chooses. However, the cost to the consumer for a chassis is anywhere between $4,476 – $10,000. Another estimate shows that such homes are moved less than 5% of the time, suggesting many buyers don’t need or want a chassis and shouldn’t have to pay for it.

The law also directs HUD to develop a label that shows consumers whether a manufactured home has a chassis, similar to its certification labels.

The change for modular homes is more technical. When you construct a home, funds are released as the project progresses through different stages, according to a draw schedule. HUD and the Federal Housing Administration have been directed to examine how these schedules are structured for modular homes and to report recommendations within a year.

Reviewing obstacles to small loan amounts

The law also seeks to make it easier to obtain mortgages for smaller loan amounts, which are often more difficult and expensive to obtain than larger loans.

The law authorizes the FHA to create a pilot program within the next 3 years for loans of $100,000 or less for single-family homes. Potential lending incentives include direct payments to lenders and grants for down payment assistance, closing costs, and appraisals, as well as funds for borrower outreach. While a pilot is authorized, implementation would be up to the FHA.

The law also directs regulators to review regulatory limits on mortgage points and fees with an eye to how they affect loan origination for loans of $100,000 or less.

This affects a relatively small but significant portion of American housing stock. According to data from Redfin, 2.8% of homes listed on the platform in May 2026 were priced under $100,000.²

New large-scale investor ownership requirements

The new law limits a single investor or investment entity from owning more than 350 single-family homes, with several exceptions.

The legislation doesn’t require those who already have more than this number to divest.

While there may be pockets of the country where investor ownership concentration is a real issue, an analysis by the Government Accountability Office shows that large-scale institutional investors own 3% of single-family homes.

Appraisal improvements

The law addresses a shortage of FHA-certified appraisers, which has driven up costs, especially in remote areas. The law allows appraisers certified in one state to complete FHA appraisals in any other state. It also makes it easier for trainee appraisers to gain experience under the wing of a licensed individual.

The bottom line: The 21^st Century ROAD to Housing Act tries to expand homeownership

The 21^st Century ROAD to Housing Act aims to make homeownership more accessible. It looks to reduce costs for FHA appraisals, make a chassis optional for manufactured homes, encourage smaller home loans, and limit investor ownership of single-family homes.

Ready to buy a home? Explore your borrowing options today with Rocket Mortgage.

¹ Rocket Mortgage is not acting on behalf of FHA or HUD

² Rocket Mortgage is an affiliate of Redfin. You aren't required to use its lending services. Learn more at redfin.com/afba.

Rocket Mortgage and Redfin are trademarks or service marks of Rocket Mortgage LLC or its affiliates.