H.R. 3700 is now law. The Housing Opportunity Through Modernization Act was activated by the signature of President Obama back in July 2016. The National Association of Realtors (NAR) has lauded this bill as a significant step in creating more availability and removing road blocks in the obtaining of mortgage credit in the condo market.
The NAR and their nearly 140,000 members have been lobbying Congress for quite some time to encourage the passing of this legislation. The Association applauded the unanimous House vote back in February and was ecstatic upon the final approval by the Senate in mid-July.
NAR President, Tom Salomone was quoted expressing his relief in knowing that condo owners will now have fewer restrictions on obtaining FHA financing.
This bill will make the Federal Housing Administration’s process for re-certification less cumbersome and it also lowered the owner occupancy requirement rate from 50% down to 35%. The FHA will also be revamping its transfer fee policy it currently has in place. The new model will be far less restrictive and more in line with the current Federal Housing Finance Agency’s guidelines.
Finally, some relief is on the way for those in the condo market who have seen increased pressure brought on by rising prices, restrictive lending guidelines, and low inventories, Salomone went on to say.
This piece of legislation has done its job by removing the barriers of strict lending guidelines and putting the dream of home ownership back into the hands of deserving Americans.