Property Improvement and Manufactured Housing Loan Modernization Act of 2025
Sponsored By: Senator Reed, Jack [D-RI]
Introduced
Summary
Expand FHA loan eligibility to finance accessory dwelling units (ADUs). The bill would also raise and reorganize loan size caps for property improvements and manufactured homes and require annual indexing and a HUD study of factory-built housing.
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- Families and homeowners: Would allow Federal Housing Administration loans to pay for the construction of ADUs tied to existing homes and would let HUD set and periodically adjust the principal amounts for those ADU loans.
- Manufactured‑home buyers and rehab borrowers: Would raise loan caps across several categories, including purchase caps of about $106,405 for single‑section homes and $195,322 for multi‑section homes, and boost baseline limits for repairs and improvements.
- HUD, lenders, and markets: Would move some limit changes from rulemaking to notice processes, require the Secretary to choose indexing methods within 1 year and apply interim indexing, and mandate a HUD study on the cost effectiveness and broader uses of factory‑built housing over a 40‑year analysis period.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Higher FHA loan limits for homeowners
If enacted, the bill would raise several FHA Title I dollar caps. You could borrow up to $75,000 for repairs or improvements to a single‑family house, including a manufactured home. The bill would set manufactured‑home purchase limits at $106,405 for a single‑section home and $195,322 for a multi‑section home. It would set purchase‑with‑lot limits at $149,782 for single‑section and $238,699 for multi‑section homes. Other specific caps would rise (for example, to $150,000, $37,500, and $43,377 in listed subcategories). These amounts would apply when the loan is made for the stated purposes.
FHA loan rules for ADUs and terms
If enacted, the bill would let FHA Title I loans finance construction of accessory dwelling units, with HUD defining ADU and setting the loan amount. The Secretary would have one year to pick annual indexing methods for loan limits, and the old index would apply in the interim. HUD could set and reset the listed dollar limits by notice rather than formal rulemaking. The Secretary would also set loan terms, which could not exceed 30 years. Leases would only qualify if they meet lease terms and conditions the Secretary prescribes.
Sponsors & CoSponsors
Sponsor
Reed, Jack [D-RI]
RI • D
Cosponsors
Sen. Lummis, Cynthia M. [R-WY]
WY • R
Sponsored 3/11/2025
Charles Schumer
NY • D
Sponsored 7/24/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov