The ROAD to Housing Act: Significant Changes Are Coming, But Slowly

The 21st Century ROAD to Housing Act became law on July 10th, and while it is expected to impact housing affordability nationwide, many of its benefits will take time to be felt. Some changes will happen sooner, while others will require additional implementation before they can make a meaningful difference for homebuyers. Below are three areas expected to directly impact buyers:

1. Institutional Buyer Ban

One of the most notable provisions is an institutional buyer ban. Investors who own 350 or more homes will be legally barred from purchasing additional single-family homes beginning in mid-January.

For future homebuyers, this could mean less competition from large, all-cash investors, creating more opportunities for individuals and families looking to purchase a home.

2. Easier Loan Evaluation

The legislation also introduces improvements to the loan evaluation process.

When applying for an FHA loan, borrowers will receive a side-by-side comparison with conventional and VA loan options. In addition, every loan application will ask about military service to help ensure veterans are aware of special loan programs that could save them money.

These changes are designed to give borrowers more transparency and help them make informed financing decisions.

3. New Construction Savings and Incentives

The Act includes a series of regulatory measures intended to increase the housing supply and improve affordability by reducing costs and saving home builders time and money.

However, many of these measures must first work their way through local governments before they can take effect. As a result, some of the intended benefits may be years away from making a measurable impact.

What This Means for Buyers

While the full impact of the ROAD to Housing Act may take years to unfold, buyers don't necessarily need to wait to explore their options. Today's homebuyers can still benefit from reviewing side-by-side loan comparisons and exploring available rate-reduction options to determine the financing solution that best fits their goals.

If you're considering purchasing a home, understanding your financing options today can help you make confident decisions while the broader changes from the ROAD to Housing Act continue to roll out over time.

Ready to take the next step? Visit our branch pages to connect with a Loan Officer near you and explore your home financing options.

Source: https://bipartisanpolicy.org/issue-brief/inside-the-deal-whats-in-the-final-21st-century-road-to-housing-act/