For years now, homebuyers seeking to take advantage of Federal Housing Administration programs have been limited on the types of homes they could purchase, sometimes deterring them from purchasing at all. We are happy to announce that some of those difficulties will soon come to an end. On July 14th, the U.S. Senate passed the “Housing Opportunity Through Modernization Act,”. The bill was approved by unanimous consent. This legislation includes reforms to existing FHA restrictions on condominium financing, which is great news for first-time homebuyers, and the real estate professionals that serve them.
The Housing Opportunity Through Modernization Act, long supported by the National Association of Realtors, includes many positive changes, including efforts to simplify the FHA’s current recertification process as well as to lower the FHA’s current owner-occupancy requirement, and replace existing policy on transfer fees with a far less-restrictive model.
This legislation is particularly significant when it comes to the sale and purchase of condominiums. Previously, condominiums were not FHA insured, however, homebuyers will now be able to secure safe and affordable financing for condos.
Mr. Salomone, President of the NAR, had many positive things to say about the topic:
“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.”
“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.”
“We look forward to seeing this legislation signed into law so homebuyers can start seeing some much-needed relief.”
As real estate professionals, we couldn’t be more ecstatic about the passing of this legislation. It is our mission to provide our clients with the best, most comprehensive service and the new revisions will help us to better assist our clients in achieving their homeownership dreams.