The 21st Century ROAD to Housing Act, the federal housing law enacted July 11, 2026, does not change loan limits, down payments, mortgage insurance or any assistance program a Chicago first-time buyer can use today; its buyer-facing changes, mainly on appraisals, VA loan disclosures and large investors, arrive in 2027 and later as agencies write the rules.
Last reviewed October 20, 2026 · Chicago First Time Home Buyer editorial team
What is the ROAD to Housing Act?
It is Public Law 119-101 (H.R. 6644), a 12-title, 59-section federal law aimed mostly at increasing housing supply: grants to local governments, faster federal environmental reviews, changes to manufactured housing rules, banking rules and HUD programs. It passed the Senate 85-5 and the House on June 23, 2026, and became law on July 11, 2026 without the President’s signature after the 10-day window passed.
Many of its sections are not self-executing. Agencies such as HUD, FHFA and the VA have to issue rules or guidance first, and the law itself appropriates no money to carry them out.
Does it change what a Chicago first-time buyer pays or qualifies for now?
No. None of its sections changes the FHA or conforming loan limits for one- to four-unit homes (its loan-limit increase is for FHA multifamily apartment loans), the FHA 3.5% minimum down payment, FHA mortgage insurance, or the rules of HomeGrown, IHDA’s programs, Downpayment Plus or the City’s TaxSmart certificate. The figures on these pages still apply:
- 2026 loan limits in Chicago and Cook County
- First-time home buyer loans in Chicago: FHA, conventional and VA
- Chicago first-time home buyer programs and down payment assistance
- Monthly mortgage payment on a Chicago home
Which parts of the law affect home buyers?
Six sections touch individual buyers or owners. All of them take effect later, and most depend on agency action.
| Section | What it does | When |
|---|---|---|
| Sec. 704, appraisals | FHA, VA, USDA and FHFA must require lenders on federally backed mortgages to have a process for reviewing and resolving a borrower’s request to reconsider an appraised value. | After the agencies set the requirements; no deadline listed in the Congressional Research Service summary |
| Sec. 601 and 603, VA loans | The standard mortgage application must tell applicants who served in the military that they may qualify for a VA home loan. Lenders must also show FHA applicants how an FHA loan compares with a VA loan. | FHFA deadline January 11, 2027 |
| Sec. 1001, large investors | For-profit investors that control 350 or more single-family homes may not buy more one- or two-unit homes, with exceptions such as build-to-rent and renovate-to-sell. | January 7, 2027, for 15 years |
| Sec. 105, small mortgages | HUD may run a four-year FHA pilot for mortgages of $100,000 or less on a 1–4 unit home the buyer will live in, which could include help with down payment and closing costs. | Optional; HUD can start it up to 3 years after enactment |
| Sec. 403, FHA appraisers | State-licensed (not only certified) appraisers may do FHA appraisals, which could add appraisers to the FHA pool. | HUD guidance due by March 8, 2027; effective within 180 days after |
| Sec. 101, counseling | HUD gets more tools to review and decertify housing counselors. Owners with FHA, VA or USDA loans who fall 30 or more days behind must be offered housing counseling. | In effect; HUD sets the details |
What does the appraisal change mean if a Chicago appraisal comes in low?
Once the agencies put Section 704 into effect, a buyer with a federally backed mortgage, such as an FHA, VA or USDA loan, will have a defined way to ask the lender to reconsider the value, for example by pointing to recent comparable sales the appraiser missed. Until then, buyers can still ask their lender how to request a reconsideration under current lender and agency practice, and their attorney can review the appraisal contingency during attorney review.
Will the investor restriction open up more homes in Chicago?
The restriction applies only to for-profit investors that already control at least 350 single-family homes, and only to purchases of one- and two-unit homes from January 7, 2027. The Congressional Research Service notes that large institutional investors own a small share of single-family rentals nationally, concentrated in certain markets, and the law’s sense-of-Congress language says the aim is to keep more single-family homes available to individual buyers. The law does not reach smaller landlords, and its exceptions include newly built rental homes and homes renovated for resale. Chicago two-flats are one- to two-unit homes, so they fall within its scope; see our guide to buying a Chicago two-flat with an FHA loan.
Could it change City of Chicago buyer programs later?
Possibly, but nothing has been announced. The law lets cities use up to 20% of their Community Development Block Grant money for new affordable housing construction, starting with funds appropriated after July 11, 2026, and it reauthorizes the HOME program with higher income and purchase-price limits for HOME-assisted homeownership. Whether the City uses either change for programs such as its purchase assistance or new-home programs depends on future appropriations and City decisions. We will update the program pages if that happens.
Common questions
Is the ROAD to Housing Act law?
Yes. It became Public Law 119-101 on July 11, 2026, without the President’s signature, after he neither signed nor vetoed it within 10 days (excluding Sundays) of receiving it.
Does the ROAD to Housing Act give first-time buyers a grant or tax credit?
No. It creates no new down payment grant or tax credit for individual buyers. The only buyer-level help is an optional HUD pilot for FHA mortgages of $100,000 or less, which HUD has not started.
Does it raise the FHA loan limit in Cook County?
No. Its loan-limit change covers FHA multifamily apartment loans. The 2026 FHA limit for a one-unit home in Cook County is still $541,287; see our loan limits page.
When does the ban on large investors buying homes start?
January 7, 2027, and it runs for 15 years, to January 7, 2042. It applies to for-profit investors controlling 350 or more single-family homes.
Sources
- Public Law 119-101, 21st Century ROAD to Housing Act, U.S. Government Publishing Office (approved July 11, 2026)
- Full text of Public Law 119-101, U.S. Government Publishing Office
- The 21st Century ROAD to Housing Act (P.L. 119-101), Report R49354, Congressional Research Service (September 17, 2026)