H.R. 6720 — FARM Home Loans Act of 2025

This section amends Farm Credit Act rural housing financing provisions by (1) authorizing loans for single-family moderate-priced rural dwellings and their appurtenances, including accessory dwelling units (previously, appurtenances only); and (2) expanding the definition of rural areas to exclude only cities or villages with populations exceeding 10,000 inhabitants (from 2,500). (Thus, Farm Credit Banks may finance housing, including accessory dwelling units, for more rural residents in communities up to that size, subject to the existing 15% portfolio limit for non-farmer/rancher borrowers.)