Sen. Peter Welch (D-Vt.) introduced legislation that would provide more financing options for homeowners in rural America. The bill amends the Housing Act of 1949 and the U.S. Department of Agriculture’s Section 502 mortgage assistance program. Specifically, the Rural Homeownership Continuity Act of 2024 will update Section 502’s liability process to help more low- and moderate-income families in rural communities purchase homes using the program.
“Rural Vermont is reckoning with an affordable housing crisis and must use every tool at our disposal to make it easier to buy a home,” Welch said in a release. “That includes updating the loan programs that were designed to help more rural families secure loans to put homeownership within their reach. This legislation will cut through red tape to make it more affordable to buy a home in rural America.”
The Mortgage Bankers Association voiced its support for the bill and the fact it provides the opportunity for a homeseller’s existing mortgage to be assumed and aligns the Section 502 program with other government-backed lending programs. MBA Senior Vice President for Legislative and Political Affairs Bill Killmer said the legislation would improve affordability, boost homebuying and selling activity, and increase future lending options.
“The National Rural Housing Coalition is pleased to support the Rural Homeownership Continuity Act and appreciates Sen. Welch’s leadership on this issue,” National Rural Housing Coalition Executive Secretary Bob Rapoza said. “In many small towns and rural communities, housing assistance available under the Agriculture Department’s rural housing programs is the only affordable housing resource. The legislation fixes a technical glitch in current law and will facilitate the assumption of Section 502 guaranteed loans by low and moderate-income households.”
“USDA’s Section 502 Guaranteed Loan program provides low- and moderate-income rural families across the country with a tool to achieve homeownership. And it is an example of a great public-private partnership between local lenders and USDA,” Housing Assistance Council Director of Public Policy Jonathan Harwitz said. “We applaud Sen. Welch for really looking into the nuts and bolts of this important program and identifying commonsense improvements. This bill will make the Section 502 Guarantee program more user-friendly for rural families looking to buy a home.”