President Obama has signed H.R. 3700 – the “Housing Opportunity Through Modernization Act” into law, which makes the Federal Housing Administration’s certification process “substantially less burdensome” and will lower FHA’s owner-occupancy requirement from 50 percent to 35 percent, NAR has reported. The bill also requires the FHA to replace an existing policy on transfer fees with a less-restrictive model that has already been in place at the Federal Housing Finance Agency.
According to The Ledger Law Firm, this legislation will help offer more purchase options to a large pool of potential home buyers who have been facing tight housing inventories, rising home prices, and strict mortgage credit underwriting guidelines.
National Association of Realtors President Tom Salomone stated that “condominiums often represent an affordable option that’s just right for first-time and low-to-moderate income home buyers,” after the Senate approved the bill in July. “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 home ownership back in reach for more Americans.”
Support for the bill came from both sides of the aisle and was lauded by Realtors around the country who have been advocating for the changes.
Northeast Property Group offers FHA Certification to condominium communities throughout CT and R.I.