SPRING LAKE, Mich. — New bipartisan bill could help homebuyers in rural areas and small towns access affordable loans
WATCH: New bipartisan bill would make buying a home in rural areas more manageable
Spring Lake homebuyers struggling with limited inventory and high prices could soon have access to more affordable loan options under a new bipartisan bill introduced in Congress.
The FARM Home Loans Act of 2025, proposed in December, would raise the population limit for rural areas from 2,500 to 10,000 residents. In the FARM Credit Act of 1971, farm credit institutions can only lend to homeowners in areas with a population of 2,500. The change would make more homebuyers eligible for loans.
Spring Lake realtor Stacey Ruwe with City2Shore Gateway Group says buying a home in the area has become increasingly difficult in recent years.
"Buying a home in Spring Lake has become more difficult over the past few years. There's a lack of inventory, and it's also not affordable," Ruwe said.
The housing shortage has forced some potential residents to look elsewhere, even when they have substantial budgets.
"We had a couple relocating here for one of the businesses opening up, and Spring Lake was ideally where they wanted to be finding a home with the right side within their budget, which was a decent budget, was very difficult. They ended up not settling in Spring Lake because they couldn't find a home that met their needs there," Ruwe said.
The bipartisan legislation is sponsored by Michigan Democrat Kristen McDonald-Rivet and Republican Bill Huizenga.
Huizenga explained that the bill addresses the disappearance of local community banks that traditionally provided mortgages in rural areas.
"We know that as our country has grown over the past several decades, we've seen a lot of local and community banks disappear, those are sources often times of those critical mortgages for people in rural areas. So, this is going to allow the federal government to come in and basically use a federal home loan guarantee is going to benefit those in rural areas and make housing more affordable," Huizenga said.
The bill sponsors say the legislation will help spur economic growth and job creation in smaller communities by making homeownership more accessible.
For realtors like Ruwe, the expanded loan eligibility could help turn potential homebuyers into actual homeowners.
"The payment is going to be a little less; the down payment is going to be a little less. Some of those requirements are a little easier for them to figure out," Ruwe said.
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