Think about the last car you bought.
Nobody built it in your driveway. It came off a factory line, inspected, finished, and ready to go. And nobody thinks less of it for that. In fact, we’d think it was a little crazy to build cars any other way.
Now picture the way we still build most homes. One house at a time. Outdoors. In the rain. Waiting on the next crew. It works, but it’s slow and it’s expensive. And right now, slow and expensive is exactly what the housing market can’t afford.
That’s why one story caught my eye this week.
FHA’s Next Leader Has a Supply Plan
Realtor.com took a close look at Matt Jones, the President’s nominee to serve as HUD’s assistant secretary for housing and FHA commissioner, and his focus on manufactured housing. Jones isn’t new to this. He already oversees FHA’s single-family housing work as deputy assistant secretary, and before that he worked as senior counsel on the Senate Banking Committee and led government housing finance policy at the Mortgage Bankers Association.
At his October 1 confirmation hearing, as HousingWire reported, he called affordability a defining challenge and named his priorities plainly: more supply, lower costs, and wider access to homeownership. He pointed out that FHA helps more than 3,000 families buy a home every business day, most of them first-time buyers.
And then he said the part I want you to remember. He called the new federal housing law “a generational opportunity to accelerate the construction of non-site-built housing.”
That’s a big statement from the person likely to run FHA. Pay attention to it.
What Actually Changed
The 21st Century ROAD to Housing Act became law on July 11, 2026. Here are the pieces that matter most for manufactured homes, based on summaries from Rocket Mortgage and NAR:
- The permanent steel chassis is no longer federally required. That chassis can add roughly $4,476 to $10,000 to a home’s cost, and these homes are moved less than 5% of the time. HUD still has to finalize its rules, and states have to certify how they’ll treat chassis-free homes, so this rolls out in stages.
- FHA Title I loan limits went up and will now be indexed every year: $106,405 for a single-section home, $195,322 for multi-section, $149,782 for single-section plus lot, and $238,699 for multi-section plus lot.
- Personal-property (chattel) loans can now run up to 30 years, and HUD gets more flexibility on lease requirements for homes on leased land.
- FHA may pilot small-dollar mortgages of $100,000 or less within three years. That’s a real opening for the starter-home market.
And this isn’t theory. Cavco showed a chassis-free, two-bedroom, two-and-a-half-bath home at HUD’s housing showcase in September. NAR reports it’s priced at $139,900 in a Pennsylvania community, and it’s already pre-sold.
Why This Matters More Than It Sounds
Here’s a number that stopped me. NAR data put the average manufactured home price at $130,500 in May 2026. The average existing home was $582,300. Now, that’s not a perfect comparison. The manufactured home price usually doesn’t include land. But even after you add a lot, the gap is enormous.
For a lot of buyers, that gap is the difference between renting for five more years and owning this year.
So why hasn’t this already taken off? Two reasons. Financing and stigma.
On financing, FHA has had manufactured home programs for decades, but they’ve been underused. Back in 2025, Jones himself noted that FHA’s Title II program had done about 130,000 manufactured home loans over three years, and Title I had done almost none. Lenders also struggled to sell chattel loans, so many simply didn’t offer them. Ginnie Mae has said it wants to build a real secondary market for these loans, which would bring more lenders to the table.
On stigma, that one’s on us. A lot of people still picture a single-wide from 1985. Today’s homes look like, well, homes. Pitched roofs. Porches. Two stories in some cases. Zoning is catching up too. Virginia, for example, passed a law this year allowing manufactured homes anywhere site-built homes are permitted.
Here’s the deeper principle. Affordability isn’t only a rate problem. It’s a supply problem. We can’t refinance our way out of a shortage of homes. Somebody has to build them. And factories can build them faster and cheaper.
What to Do With This Right Now
Most of these changes will take time to reach the street. HUD rules, state certifications, and factory retooling don’t happen overnight. And Jones still has to be confirmed. But the direction is clear, and the people who learn this early will be the ones buyers trust later.
For Realtors: Stop treating manufactured homes as a last resort. Learn the difference between a home titled as real property on its own land and one titled as personal property. Find out what your county’s zoning allows. Then, when a buyer says “I can’t afford anything,” you’ll have a real answer instead of a sympathetic nod. Here in Montgomery County and the rural areas around Clarksville and Fort Campbell, a home on its own acreage can be a smart path for the right buyer.
For loan officers: Know which manufactured home programs you can actually close. FHA, VA, and conventional options all have their own rules on foundations, HUD data plates, titling, and age of the home. Know them before the buyer finds the house, not after. A file that dies at the foundation certification is a file that didn’t have to die.
For buyers: Don’t rule it out because of an old picture in your head. Ask the right questions early. Is it on a permanent foundation? Is the land included? How is it titled? Those answers shape your loan options, your rate, and your resale value.
The Deal Doctor’s Prescription
Markets change. Rules change. Even what a “house” looks like is changing. People don’t. Buyers still want a safe place, a fair payment, and someone they can trust to explain it all.
So here’s my challenge for this week. Pull up two or three buyers who stalled out on price. Ask yourself one question: did anyone show them a manufactured home on land? If the answer is no, that’s a conversation worth having.
Knowledge is power. And this time, it might come off a factory line.
Questions about financing a manufactured home? Just call Kate at (931) 980-9764 or email Kate@VanDykMortgage.com. Buyers can get started any time right here: create your account.
Frequently Asked Questions
1. Who is Matt Jones?
Matt Jones is the President’s nominee for HUD assistant secretary for housing, a role that also serves as FHA commissioner. He currently serves as HUD’s deputy assistant secretary for single-family housing and previously worked as senior counsel for the Senate Banking Committee and in government housing finance policy at the Mortgage Bankers Association.
2. Has he been confirmed as FHA commissioner?
As of this writing, he has had his Senate Banking Committee confirmation hearing (October 1, 2026), but the committee and the full Senate still need to act on the nomination.
3. What is the 21st Century ROAD to Housing Act?
It’s a bipartisan federal housing law that took effect July 11, 2026. It includes changes to manufactured housing rules, higher FHA Title I loan limits, a possible FHA small-dollar mortgage pilot, appraisal flexibility, and limits on large investors buying single-family homes.
4. What is the chassis requirement, and why does removing it matter?
Manufactured homes have traditionally been built on a permanent steel chassis so they could be moved. Most are rarely moved, and the chassis can add thousands of dollars to the cost. Removing the federal requirement can lower costs and allow more traditional-looking designs, including two-story homes. HUD still needs to finalize its rules, and states must certify how they’ll treat these homes.
5. What’s the difference between FHA Title I and Title II for manufactured homes?
Title I can finance a manufactured home titled as personal property, with or without a lot. Title II is a traditional FHA mortgage for a manufactured home that is permanently attached to a foundation and treated as real estate. Title II has historically been far more widely used.
6. What are the new FHA Title I loan limits?
Per NAR’s reporting: $106,405 for a single-section home, $195,322 for a multi-section home, $149,782 for a single-section home plus lot, and $238,699 for a multi-section home plus lot. These limits are now indexed annually.
7. Are manufactured homes and modular homes the same thing?
Not traditionally. Manufactured homes are built to the federal HUD code. Modular homes are factory-built but have been built to state and local building codes. With the chassis rule changing, that line may blur, so it’s important to confirm how a specific home is classified and titled.
8. Can I use a VA loan to buy a manufactured home?
In many cases, yes. VA financing is generally available for manufactured homes that are permanently affixed to a foundation and classified as real property, with additional property requirements. Talk with a lender who closes these loans regularly before you make an offer.
9. Do manufactured homes hold their value?
It depends on the home and the land. Homes on owned land, on a permanent foundation, and titled as real estate tend to behave more like traditional homes. Homes on leased land or titled as personal property can behave differently. Local market data and a good appraisal tell the real story.
10. When will buyers actually see these changes?
Some changes, like higher Title I limits, are already law. Others, like chassis-free homes in volume, depend on HUD finalizing rules, states certifying their laws, and factories retooling. Expect a gradual rollout through 2026 and 2027 rather than an overnight shift.
Source: Inspired by Realtor.com’s report on FHA commissioner nominee Matt Jones and manufactured housing. Additional details from HousingWire (Oct. 1, 2026), NAR (Oct. 12, 2026), Rocket Mortgage, and National Mortgage News. Commentary and opinions in this post are my own.
Kate Deiboldt, Senior Mortgage Advisor, NMLS #18487. VanDyk Mortgage Corporation, Company NMLS #3035. Licensed in TN, KY, AL, FL, GA, TX, and IL. Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval, underwriting guidelines, and program eligibility. Rates, terms, loan limits, and programs are subject to change without notice. Manufactured home financing is subject to property eligibility requirements, including foundation, titling, and age requirements. VA loan eligibility requirements apply. http://www.nmlsconsumeraccess.org
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