NAR-backed Condo Legislation Passes U.S. Senate
On July 14, 2016 the Senate unanimously passed the “Housing Opportunity Through Modernization Act.”
The legislation includes reforms to the current Federal Housing Administration restrictions on condominiums financing.
- efforts to make FHA’s recertification process “substantially less burdensome,”
- lower the FHA’s current owner-occupancy requirement from 50% to 35%.
- requires FHA to replace existing policy on transfer fees with the less-restrictive model already in place at the Federal Housing Finance Agency.
Tom Salomone, president of NAR praised the legislation as a significant step towards eliminating barriers to safe, affordable mortgage credit for condos.
“Condominiums often represent an affordable option that’s just right for first-time and low-to-moderate income homebuyers. Unfortunately, overly-burdensome restrictions on condo financing have for too long put that option out of reach for many creditworthy borrowers.
“This legislation meets those restrictions head on, putting the dream of homeownership back in reach for more Americans.
“Tight inventory and rising home prices are a reality of today’s market, and mortgage credit is hard to come by. We should take every opportunity to clear the path for well-qualified borrowers to purchase a home when they’re ready, and this legislation does just that.
“Sens. Tim Scott (R-S.C.) and Robert Menendez (D-N.J.) have done tremendous work to see H.R. 3700 move forward, and we’re thankful for their support. Realtors® made their voices heard as well, reaching out to their Senators and Representatives to remind them of how important this issue is to homeownership.
“We look forward to seeing this legislation signed into law so homebuyers can start seeing some much-needed relief.”
It is thought that over the next several years, affordable homes will become more difficult to find as ‘baby-boomers downsize. The NAR feels this legislative move will help.
Your lender can advise you on the type of financing available to you and we can help you find the right condo to fit your needs and lifestyle.