Rep. Jim Costa (D–Fresno) is teaming up with Republicans to push for affordable home ownership for rural communities.
Costa, along with Rep. Doug LaMalfa (R–Richvale) and Rep. Lori Chavez DeRemer (D–Oregon), introduced H.R. 9814 last month, which is the Rural Homeownership Continuity Act.
The big picture: The proposal would help families get federal loans at lower interest rates.
- Currently, the U.S. Department of Agriculture offers the Section 502 Guaranteed Loan program to provide loans to low- and moderate-income rural families.
- The bill 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.
State of play: When someone sells a home that has a Section 502 Guaranteed loan, the buyer cannot transfer the seller’s low interest rate.
- Buyers are forced to settle for higher rates from private lenders, which currently average around 6% in California.
- But the USDA loan rates are often as low as 3% to 4.5%, with 1% loans available to very low-income buyers.
What they’re saying: “The Rural Homeownership Continuity Act represents a vital step forward towards strengthening communities in the San Joaquin Valley and rural America,” Costa said. “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.”
- LaMalfa said he is happy to support a bill that removes bureaucratic barriers to low-income residents to purchase homes.
- “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,” LaMalfa said.
