October 14, 2016
‘Condo Financing Details Still Undecided’
By James D. York, P.A.
The “Housing Opportunity Through Modernization Act” (aka H.R. 3700) that was signed into law earlier this year contains some important changes to condo financing regulations. The act dealt with rules for “spot loans” (these are loans for a single condo unit that don’t require development-wide approval), as well as an extension of the certification period—all well and good.
The act also addresses owner-occupancy rate requirements—and therein lies the rub. The Department of Housing and Urban Development (HUD) was given 90 days to decide details on FHA financing for condos after the passage of the law. HUD recommended a range of 25% to 75% owner-occupancy, in contrast with a 35% requirement specified in H.R. 3700. The NAR expressed disappointment with this. They consider the proposed ratio too high, citing as evidence the fact that less than 10% of condos are currently FHA certified.
According to NAR President Tom Salomone, "Realtors have for years raised concerns in Congress over restrictions on FHA financing for condominiums – particularly for first-time and low-to-middle income buyers looking to purchase a home… To be clear, this is by no means the end of the road. HUD has asked for comment from the public on this proposed rule, and Realtors will certainly make their voices and concerns heard.”
Give us a call with any questions on how you can be heard on this issue—or with any other real estate queries you may have.
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York Real Estate Group consists of James, Michael, and Morgan York, Florida Realtors with Downing-Frye Realty. James York is the winner of the prestigious 2014 and 2015 SWFL People’s Choice Realtor Award. The group has over 25 years combined experience and over $275 million in sales transactions. Visit The York Group website at www.naplesyorkrealestate.com for all current MLS listings of houses for sale in Naples, Marco, Bonita, and Estero. If you have other questions, the York’s invite you to email or call them at JYorkinFL@cs.com or 239-273-6727.