REALTOR® NEWS-- FHA Condo Relief Coming: President Signs Bill
Good news for all condo buyers-- the H.R. 3700 or "Housing Opportunity Through Modernization Act"-- was finally signed into law by President Obama. Hailed as a "significant step" by the National Association of REALTORS®, the new law will eliminate barriers that prevent buyers from acquiring safe and affordable mortgage credit for condos. NAR has been a staunch supporter of the bill and has lobbied in Congress for its passage. Realtors believe that the passage of the bill will help buyers across the country who look into buying a condo as a cheaper option for their first home or investment.
The newly-passed law will make the Federal Housing Administration’s recertification process “substantially less burdensome”. NAR also reports that the law will lower FHA’s owner-occupancy requirement from 50% to 35%. Lastly, the law requires the FHA to replace an existing policy on transfer fees with a less-restrictive model that has been previously adapted by the Federal Housing Finance Agency. Ultimately, the law will help qualified potential home buyers to buy their own home in spite of tight housing inventories, fast-rising home prices, and strict mortgage credit underwriting guidelines, among others.
To know more about this newly-passed law, you can access the original article from which this post was based at the official REALTOR® website.