NAR issues Call For Action about expanding FHA condo opportunities

NAR graphic 3Illinois REALTORS® – Ask your U.S. senator to bring H.R. 3700 to the floor of the U.S. Senate for a vote so that changes can be made to the Federal Housing Administration’s (FHA) condominium loan program, federal assisted housing programs and the Rural Housing Service loan programs.

That’s one of the most important messages in today’s National Association of REALTORS®’ Call For Action on the “Housing Opportunity Through Modernization Act of 2016.” But, it is not the only important message of this Call for Action.

Other important messages include:

  • thanking your U.S. representative for approving H.R. 3700 in the U.S. House of Representatives (the vote was unanimous); and
  • sign up for REALTOR® Party Mobile Alerts online or text “REALTOR” to 30644.

The legislation fixes several concerns regarding FHA’s condo rules:

  • Reduces the FHA condo owner occupancy ratio to 35 percent unless FHA takes alternative action to reduce the ratio below its current level;
  • Directs FHA to streamline the condo recertification process;
  • Provides more flexibility for mixed use buildings; and
  • Mirrors the Federal Housing Finance Agency’s (FHFA) rules regarding private transfer fees for FHA condo lending.

Also H.R. 3700:

  • Provides permanent authority for direct endorsement for approved lenders to approve Rural Housing Service (RHS) loans; and
  • Makes reforms to federally assisted housing programs to streamline the programs.

But that’s not all. For more information, review the NAR Talking Points on this issue.

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