The real estate industry is constantly evolving, and staying informed about new legislation is one of the best ways to make smart decisions when buying or selling a home. On July 11, 2026, the 21st Century ROAD to Housing Act officially became law, bringing several important changes that could impact home buyers, sellers, military veterans, lenders, and real estate professionals.
While many of the provisions in the law are aimed at improving housing affordability and increasing the nation’s housing supply over the coming years, there are also a few immediate changes that consumers should understand. Fortunately, many of these updates are designed to create more transparency and make homeownership more accessible.
Here’s a closer look at some of the biggest changes and what they may mean for you.
Helping More Veterans Discover Their VA Home Loan Benefits
One of the most consumer-friendly provisions of the new law is designed to ensure that eligible military veterans don’t miss out on one of the best mortgage programs available.
Within six months, the Federal Housing Finance Agency (FHFA) will update the Uniform Residential Loan Application (URLA)—the standard application used for most home loans. The updated application will notify qualified military veterans of their eligibility for a VA Home Loan if they, or even a deceased spouse, served or are currently serving in the United States Armed Forces.
The notice will appear directly above the signature line on the loan application, making it much more difficult for eligible borrowers to overlook this valuable benefit.
Why This Matters
Many veterans simply aren’t aware they qualify for a VA loan. Others mistakenly believe they have already “used up” their benefit or think they need a down payment.
In reality, VA loans often provide significant advantages, including:
- No down payment for qualified borrowers
- No private mortgage insurance (PMI)
- Competitive interest rates
- Flexible credit guidelines
- Lower monthly payments in many situations
By adding this notification directly to the mortgage application, Congress hopes more veterans will learn about these benefits before choosing another loan program.
If you’re a veteran—or surviving spouse—it may be worth speaking with your lender about whether a VA loan is available to you before moving forward with financing.
Increased Focus on Building More Housing
Housing affordability continues to be one of the biggest challenges facing communities across the country.
Rather than relying solely on federal funding, the new legislation encourages local governments to take steps that can help increase housing inventory.
Some of those recommendations include:
- Expediting building permits
- Supporting commercial-to-residential conversions
- Encouraging redevelopment projects
- Promoting higher housing production
- Reviewing zoning policies that limit development
Although these provisions do not automatically change local zoning laws, they encourage municipalities to remove unnecessary barriers that slow down construction.
What This Means for Buyers
More housing inventory generally creates more choices for buyers.
If local governments respond by approving more developments, buyers may eventually benefit from:
- Increased inventory
- Less competition
- More new construction
- Improved affordability
- Greater housing options
Of course, these changes won’t happen overnight. Development projects often take months—or even years—to complete—but the legislation signals that increasing housing supply remains a national priority.
Watch for Local Development Opportunities
For homeowners, investors, and even first-time buyers, keeping an eye on local government decisions may become more important than ever.
Communities that begin embracing the goals of the new law could see increased redevelopment activity.
Some things worth monitoring include:
- Planning commission agendas
- City council meetings
- Building permit activity
- Redevelopment proposals
- Commercial building conversions
- New subdivision approvals
- Accessory Dwelling Unit (ADU) ordinances
These projects often influence neighborhood values long before construction begins.
For example, a former shopping center being converted into residential housing could create entirely new neighborhoods. Likewise, communities allowing ADUs may give homeowners additional opportunities to generate rental income or provide housing for family members.
Working with a knowledgeable local real estate professional can help buyers stay informed about these developments before they become common knowledge.
Changes to Appraisal Review Procedures
Another important portion of the legislation focuses on residential appraisals.
Occasionally, an appraisal comes in lower than expected, creating challenges during a real estate transaction. Buyers and sellers often ask whether there is a way to challenge an appraisal when factual errors exist.
The new law requires several federal agencies—including:
- Federal Housing Administration (FHA)
- Federal Housing Finance Agency (FHFA)
- Department of Veterans Affairs (VA)
- U.S. Department of Agriculture (USDA)
to maintain procedures allowing borrowers to request a Reconsideration of Value (ROV).
What Is a Reconsideration of Value?
A Reconsideration of Value is a formal request asking an appraiser to review their opinion of value after additional information is presented.
It’s important to understand that this is not simply asking for a higher number.
Instead, borrowers or lenders typically provide evidence such as:
- Better comparable sales
- Recently completed home improvements
- Missing permits
- Incorrect square footage
- Missed upgrades
- Factual errors within the appraisal report
If legitimate information was overlooked, the appraiser may revise the valuation.
How Sellers Can Prepare
Whether or not you expect appraisal issues, keeping good documentation can help.
Helpful records include:
- Receipts for remodeling projects
- Building permits
- Before-and-after photos
- Lists of recent improvements
- Comparable neighborhood sales
- Documentation of upgrades
- Records of seller concessions
The more organized your records are, the easier it becomes to support your home’s value if questions arise during the transaction.
New Restrictions on Large Institutional Investors
Perhaps the provision receiving the most attention is a new restriction affecting certain large institutional investors.
Beginning January 7, 2027, entities that control 350 or more single-family homes will face new restrictions on purchasing additional single-family residential properties.
Will This Affect Most Investors?
For the vast majority of local investors, probably not.
The threshold is intentionally very high.
Most individual investors own only a handful of rental properties, while many local investment companies own far fewer than 350 homes.
The legislation is primarily aimed at extremely large institutional investment firms that have accumulated substantial single-family housing portfolios in recent years.
If you’re a local investor purchasing one property—or even several properties—you’ll likely see little or no impact from this provision.
Could This Help Home Buyers?
One of the goals behind these restrictions is to reduce competition from very large institutional buyers in certain housing markets.
In some communities, institutional investors have purchased significant numbers of homes, making it more difficult for first-time buyers to compete.
Whether these new restrictions noticeably improve affordability remains to be seen, but supporters believe they could provide additional opportunities for owner-occupant buyers.
The actual impact will likely vary by market.
Here in Central Indiana, many transactions already involve local families and individual investors rather than massive institutional firms, so the effects may be modest.
What Should Buyers and Sellers Do Now?
While much of the legislation lays the groundwork for future changes rather than immediate ones, it’s still worth paying attention to how these provisions develop.
Home buyers should:
- Ask about all available mortgage programs, especially VA loans if eligible.
- Stay informed about new housing developments in their community.
- Work with experienced real estate professionals who monitor legislative changes.
Home sellers should:
- Keep documentation of improvements and repairs.
- Maintain organized records in case appraisal questions arise.
- Watch neighborhood redevelopment activity that could affect property values.
Investors should:
- Continue monitoring future guidance related to institutional purchase restrictions.
- Stay informed about redevelopment opportunities created by local housing initiatives.
The Bottom Line
The 21st Century ROAD to Housing Act represents another step toward addressing housing affordability, increasing inventory, improving transparency for military veterans, and creating more consistent appraisal review procedures.
While not every provision will immediately affect every homeowner or buyer, several changes—particularly expanded awareness of VA loan eligibility and standardized appraisal review procedures—could have meaningful benefits for consumers.
As local governments begin responding to the legislation by encouraging new housing developments and redevelopment projects, buyers and sellers may see additional opportunities emerge over the next several years.
Real estate laws continue to evolve, and having an experienced real estate professional on your side can make navigating those changes much easier.
If you’re thinking about buying, selling, investing, or simply have questions about how recent housing legislation could affect your goals, the team at JF Property Group is here to help. We proudly serve buyers and sellers throughout Greenwood, Indianapolis, Center Grove, Johnson County, Hamilton County, and communities across Central Indiana. Whether you’re purchasing your first home or planning your next move, we’re committed to providing expert guidance every step of the way. Contact us today to learn more about today’s housing market and how these new changes may impact your real estate journey.
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