Deremer: Rural Homeownership Continuity Act

From the Office of Rep. Lori Chavez-DeRemer,

WASHINGTON, D.C. – Rep. Lori Chavez-DeRemer (OR-05), Jim Costa (CA-21), and Doug LaMalfa (CA-01) have introduced the Rural Homeownership Continuity Act (H.R. 9814), a bipartisan proposal that would help families attain federal loans at lower interest rates. The goal is to make homeownership more affordable in rural America.

“Oregon is ranked the fifth-most unaffordable state for local homebuyers, and all of our communities – urban, suburban, and rural – have felt the effects of this affordability crisis. Too many Oregonians are forced to work multiple jobs just to afford their mortgages,” Chavez-DeRemer said. “That’s why I’ve been working to find bipartisan solutions that will make a direct, lasting impact. I’m honored to help introduce the Rural Homeownership Continuity Act, which will improve housing affordability and access in our rural communities.”

“The Rural Homeownership Continuity Act represents a vital step forward towards strengthening communities in the San Joaquin Valley and rural America,” said Costa. “By helping families take advantage of lower interest rates, we’re not just making homeownership more attainable, but fostering stability and economic growth. Every family deserves the chance to build a future in a home they can afford.”

“As we face a growing rural housing crisis in California and across the country, I’m happy to support this bill that removes bureaucratic barriers to low-income residents’ ability to achieve homeownership. By streamlining the process of loan transfer, this legislation makes it easier for rural families to get the financing they need to own a home,” said LaMalfa.

The Section 502 Single Family Housing Loan Guarantee Program is a mortgage assistance program within the U.S. Department of Agriculture (USDA) that helps with lending for low- and moderate-income households buying homes located in eligible rural areas.

In rural communities, where access to affordable housing is often limited, the Rural Homeownership Continuity Act would amend the Housing Act of 1949 to permit loan assumption under Section 502 to release departing borrowers from liability when their loans are assumed by new borrowers.

Right now, when someone sells a home that has a USDA Section 502 Guaranteed Loan, the buyer can’t transfer the seller’s low interest rate. Instead, they often must settle for higher rates from private lenders. In contrast, existing USDA loans can offer rates as low as 3-4.5 percent, and even down to 1 percent for very low-income buyers. This difference can save families a lot of money over time.

Full text of the bill is available HERE.

Last month, Chavez-DeRemer introduced a bipartisan bill to ensure more people experiencing homelessness can access the resources they need to get back on their feet. She recently helped secure a $5 million federal grant to help Bend build more affordable homes. Chavez-DeRemer is also leading the bipartisan Choice in Affordable Housing Act to help more low-income families access affordable housing. Additionally, she has backed bipartisan legislation like the Affordable Housing Credit Improvement Act and the Neighborhood Homes Investment Act that would help build more affordable homes.