The Rural Homeownership Continuity Act of 2025: Explained

Overview: Rural Homeownership Continuity Act of 2025

The Rural Homeownership Continuity Act of 2025 is a proposal that would make certain United States Department of Agriculture (USDA) rural home loans assumable. An assumable loan lets a new, eligible buyer take over an existing mortgage instead of starting a brand-new loan.

The bill focuses on USDA Section 502 guaranteed rural home loans that are current at the time the home is transferred. It also creates a clear handoff of responsibility from the seller to the buyer, so the seller is not on the hook after a successful assumption.

The Rural Homeownership Continuity Act of 2025 was introduced in the 119th Congress. Note that bills often change on their way to becoming law, so this page will update as new details emerge. For real-time updates, subscribe to our newsletter.

What Is the Rural Homeownership Continuity Act of 2025?

The Rural Homeownership Continuity Act of 2025 would let an eligible buyer assume a USDA Section 502 guaranteed rural home loan when the home changes hands. Instead of the seller paying off the existing mortgage and the buyer getting a new one, the buyer can step into the existing loan.

The bill sets a simple baseline rule: the existing guaranteed loan must be current at the time of transfer. When the loan is current, the assumption can move forward as long as the new buyer qualifies for the USDA program.

Who Qualifies Under the Rural Homeownership Continuity Act of 2025?

The Rural Homeownership Continuity Act of 2025 ties eligibility to the USDA Section 502 guaranteed loan program. The buyer who assumes the loan must qualify for the program.

The bill also describes the loan status needed for an assumption to apply:

• The home is being transferred to a new owner
• The existing USDA guaranteed loan is current, meaning it is not delinquent
• The buyer qualifies for a USDA Section 502 guaranteed loan

When those pieces line up, the assumption can function as a program-approved way to purchase the home using the existing guaranteed loan.

How the Rural Homeownership Continuity Act of 2025 Works

The Rural Homeownership Continuity Act of 2025 lays out what happens during an assumption, including who is responsible for the loan after the transfer.

Assumption And Responsibility

Once the assumption is completed:

• The seller, and any co-borrower or guarantor, is released from liability
• The assuming buyer takes on the loan’s obligations, rights, and interests

That structure supports a clean transition from the current homeowner to the next homeowner.

Loan Terms After Assumption

The bill anticipates two possible outcomes for the loan after assumption:

• The buyer assumes the existing loan terms and responsibilities, or
• The loan uses updated terms that USDA approves

Either way, the buyer becomes the responsible party for the mortgage going forward.

Which Loans Are Covered

The bill applies to USDA Section 502 guaranteed loans made on or after the law’s enactment date. That effective-date rule means the assumption option is designed to apply to loans issued after the law takes effect, not earlier loans.

Possible Fees For The Assumption

The Rural Homeownership Continuity Act of 2025 also gives USDA the option to allow loan servicers to charge fees for transaction costs tied to the assumption. These are fees connected to completing the transfer process, not a change to the idea that the loan can be assumed by an eligible buyer.

Who Sponsors the Rural Homeownership Continuity Act of 2025?

H.R. 5728 is a House bill in the 119th Congress. The Bill Tracker above will show the sponsor, any cosponsors, and key actions as they are recorded.

For the latest legislative updates and cosponsors, see the Bill Tracker above.