Property Improvement and Manufactured Housing Loan Modernization Act of 2025
The Property Improvement and Manufactured Housing Loan Modernization Act of 2025 would modernize and expand the Title I loan program under the National Housing Act. The bill increases the dollar limits for property improvement loans and for various categories of manufactured housing purchases, and it explicitly permits property improvement loans to be used for constructing accessory dwelling units (ADUs). It also requires a mechanism to index these loan limits annually to reflect inflation and directs HUD to develop or select an indexing method within a year, with an interim indexing approach in the meantime. Additionally, the bill directs HUD to conduct a study on factory-built housing (which includes manufactured and modular homes) assessing cost effectiveness, transport and construction cost tradeoffs, maintenance costs, and potential expanded uses beyond single-family housing (including ADUs and larger multi-unit projects). In short, the bill aims to widen access to financing for home improvements and for manufactured housing, ensure loan limits keep pace with inflation, and promote consideration of factory-built housing as a cost- and performance-efficient option in a wider range of housing applications.
Key Points
- 1Increases loan limits for the Title I property improvement/manufactured housing program:
- 2- Alterations, repairs, and improvements: up to $75,000.
- 3- Manufactured housing purchases and related categories: higher maximums for single-section and multi-section homes, including those with land:
- 4- Purchase of a single-section manufactured home: $106,405.
- 5- Purchase of a multi-section manufactured home: $195,322.
- 6- Purchase of a single-section home with land: $149,782.
- 7- Purchase of a multi-section home with land: $238,699.
- 8- A new category allowing a higher principal amount for financing the construction of an accessory dwelling unit (ADU) (the exact amount to be set by the Secretary).
- 9- An additional category with an identified maximum (e.g., $43,377 in one of the amended subparagraphs).
- 10Explicitly allows property improvement loans to be used for construction of accessory dwelling units (ADUs).
- 11Establishes annual indexing of certain loan limits:
- 12- The Secretary must develop or choose one or more indexing methods by no later than one year after enactment.
- 13- Until a new indexing method is in place, the interim method in effect prior to enactment applies.
- 14- The bill requires the limits to be periodically reset based on justification and a methodology set in advance by regulation.
- 15Changes to loan terms and administration:
- 16- Adjusts the terms and conditions under which loan limits are measured and applied, including adjustments to the maximum repayment period (potentially up to 30 years for certain loans).
- 17- Adds a requirement to adjust margins as appropriate to reflect indexing and other factors.
- 18HUD study of factory-built housing (Section 3):
- 19- Defines factory-built housing to include manufactured homes and modular homes.
- 20- Directs HUD to study cost effectiveness, including:
- 21- Cost reductions from centralized manufacturing versus transporting units to sites.
- 22- Precision and materials waste reductions from factory production.
- 23- Expected maintenance and replacement costs over the first 40 years of life.
- 24- Opportunities for broader use beyond single-family housing, such as ADUs, two- to four-unit housing, and larger multifamily projects.