August 5, 2016
‘New Condo Legislation Eases Restrictions’
By James D. York, P.A.
A bill passed unanimously by the Senate last week will make it easier to buy and sell condos by reducing financing restrictions. The House had passed the bill in February; it now heads to the President’s desk to be signed into law.
Actively promoted by the National Association of Realtors® (NAR), the “Housing Opportunity Through Modernization Act,” or H.R. 3700, will simplify FHA’s recertification process. It also will lower the FHA’s current owner-occupancy requirement from 50% (of owners living in the building versus renting their unit) to 35%.
According to Tom Salomone, president of NAR and broker-owner of Real Estate II Inc. in Coral Springs, Florida, the long-awaited bill will make it possible for more people to become homeowners. "Condominiums often represent an affordable option that's just right for first-time and low-to-moderate income homebuyers," he said. "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."
The current tight market inventory, along with rising prices, has been contributing to difficulty obtaining mortgages, and this bill should help ameliorate that. It will also make it easier for current condo owners to sell, further boosting inventory and improving the market overall.
We can help with all your housing decisions, condo or otherwise—just give us a call at 239-273-6727.
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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 $250 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.