This bill allows borrowers with Rural Housing Service loans to transfer their mortgages to qualified buyers when they sell their rural homes. Currently, these government-backed loans cannot be assumed by new owners, forcing sellers to pay off the loan at closing and requiring new buyers to obtain separate financing. Under this legislation, eligible rural homebuyers would be able to take over existing loans with their current terms, potentially saving money on closing costs and interest rates. The bill amends the Housing Act of 1949 and applies specifically to the Doug Bereuter Section 502 Single Family Housing Loan Guarantee Program, which helps low and moderate-income families purchase homes in rural areas. The legislation releases original borrowers from liability once their loan is assumed by the new owner.
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