Law Makes it Easier to Get an FHA Loan for a Condominium
If you’re looking to own but don’t want a single family home, a new federal law could help you qualify for a loan to buy a condominium. REALTORS® across America have championed H.R. 3700, which was recently signed into law by President Obama. The bill eases federal regulations allowing buyers to qualify for Federal Housing Administration (FHA) financing.
H.R. 3700, the “Housing Opportunity Through Modernization Act,” will benefit first time home buyers and others who typically invest in smaller homes or condos as the most affordable option. FHA financing was previously limited to condominium homeowner associations where 50 percent of the units were owner-occupied. This disqualified many condos, and precluded buyers from accessing an FHA loan, which is typically one of the easiest loans to get. H.R. 3700 requires HUD and the FHA to review and ease this policy. HUD is in the process of finalizing their FHA condo rules.
California Association of REALTORS® and the National Association of REALTORS® were both active supporters of the bill. REALTORS® estimate that the bill will put thousands of affordable housing opportunities within reach to families looking to own.
Contact your REALTOR® for more information about H.R. 3700 and how it might help you access FHA financing for the condo of your dreams.