The agencies cited cost and supply concerns in the rescission of the prior rule tying mortgage eligibility to 2021 building standards.
The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) recently announced they are withdrawing a prior policy that required new homes to meet the 2021 International Energy Conservation Code (IECC) in order to qualify for certain federally backed mortgages. The earlier rule, issued in 2024, applied to loans supported by the Federal Housing Administration (FHA) and USDA programs.
“By rescinding this mandate, we are removing a significant regulatory barrier that added tens of thousands of dollars to the cost of a new home,” said HUD Secretary Scott Turner.
“Affordable rural housing is a top priority… and we are focused on removing all the unnecessary restrictions that artificially drive up new home prices,” said USDA Secretary Brooke Rollins. “We launched the Rural Revival Agenda at USDA to bring rural communities to the forefront of our actions.”
The federally backed loan programs will return to earlier energy efficiency standards while agencies continue evaluating long-term housing and affordability considerations.
As the Lord Leads, Pray with Us…
- For Secretary Turner and HUD personnel as they make housing policy decisions and implement updates to new home construction standards.
- For Secretary Rollins and USDA officials as they collaborate with HUD to support affordable housing in rural communities.
Sources: Department of Housing and Urban Development
