A bipartisan group of senators introduced legislation Tuesday to expand access to home loans in rural areas by updating outdated eligibility rules under the Farm Credit Act of 1971.
Sens. Peter Welch, D-Vt., Jim Justice, R-W.Va., Adam Schiff, D-Calif., and Cindy Hyde-Smith, R-Miss., sponsored the FARM Home Loans Act, which would raise the population threshold for rural areas eligible for certain farm credit housing loans from 2,500 to 10,000 residents.
Lawmakers said the change would help nearly 30 million additional homebuyers qualify for assistance.
The bill comes as housing affordability remains a top concern for voters ahead of the midterms, with rural areas seeing sharp price increases in recent years.
The legislation would amend Section 1.11(b) of the Farm Credit Act to allow farm credit institutions to finance homes, including accessory dwelling units, in larger rural communities.
Proponents said this aligns the definition more closely with the U.S. Department of Agriculture’s rural housing program standards.
Welch highlighted the impact in his home state.
Bipartisan Senators Unveil Rural Housing Loan Bill
