H.R. 3700, the Housing Opportunity Through Modernization Act, was passed by the Senate. Now, it just needs President Obama’s signature to become law.
This legislation includes reforms to current Federal Housing Administration restrictions on condominium financing, and will help would-be buyers of Orlando condos – in particular the condo conversions which are so ”investor heavy”. In some communities 90% of owners are absentee investors and this has made lending almost impossible until now.
These changes will make the Federal Housing Administration’s recertification process much easier, and it will lower the FHA’s current owner-occupancy requirement from 50% to 35%. The bill also requires FHA to replace existing policy on transfer fees with the less-restrictive model already in place at the Federal Housing Finance Agency.
The FHA’s current restrictions on condominium financing present a significant hurdle for one of America’s most affordable options, according to testimony given on Capitol Hill in 2015.
Current NAR President Tom Salomone oultined the opportunity. “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,” Salomone said. “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,” he said.
For more information concerning Orlando condos, check out our website at: http://CondoMetropolis.com or call us on (407) 901-5161.