Section 1. Short title
This Act may be cited as the Rural Homeownership Continuity Act of 2025.
(a) In general
Section 502(h)(10) of the Housing Act of 1949 (42 U.S.C. 1472(h)(10)) is amended to read as follows:
(A) In general
The Secretary may provide for the assumption of a current guaranteed loan made under this subsection by any individual qualified to receive a guaranteed loan under this subsection upon the transfer to that individual of the property for which the guaranteed loan was made.
(B) Release from liability
If a borrower of a guaranteed loan under this subsection transfers the property for which the guaranteed loan was made to an individual who assumes the guaranteed loan under subparagraph (A), the transferor, and any co-borrower or guarantor of the transferor, shall be relieved of liability with respect to the guaranteed loan.
(C) Assumption of obligations, rights, and interests
The Secretary shall provide in each assumption under subparagraph (A) for the assumption of the obligations, rights, and interests under the terms of the guaranteed loan or such other terms as the Secretary determines appropriate.
(b) Applicability
The amendment made by subsection (a) shall apply with respect to loans guaranteed under section 502 of the Housing Act of 1949 (42 U.S.C. 1472) on or after the date of enactment of this Act.
(c) Rulemaking
The Secretary of Agriculture may issue a rule to allow servicers of loans guaranteed under section 502 of the Housing Act of 1949 (42 U.S.C. 1472) to charge fees to borrowers for transaction costs associated with the loan.