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Rural Americans rely on programs like the 502 Rural Housing Guaranteed Loan Program to provide them with services that can be difficult to come by in some communities. While the program ran out of funding earlier this year Congress subsequently authorized additional credit authority and premium changes to this program to restore its availability to needy homebuyers. Although the legislation increases the guarantee fee for borrowers, the fee can still be financed. This change makes the program completely self-sufficient. The legislation also increases the Rural Housing Service (RHS) commitment authority allowing guaranteed loans.

Previously, RHS had been providing conditional commitments. For a brief time after the legislation was enacted, RHS restored the program. However, RHS halted the program at the end of the 2010 fiscal year despite a continuing resolution signed by the President on September 30, 2010, that continued funding federal programs, including the 502 Rural Housing Guaranteed Loan Program. NAR has been working on restoring funding since March.