Many first-time homebuyers turn to condominiums as a more affordable option for homeownership. Condominiums make up about 9 percent of the housing stock, but their share of the FHA portfolio is only 4.1 percent. Current FHA condo lending rules restrict the number of condos available to FHA homebuyers, thus limiting the often most affordable, appropriate choice for many families. Changes to the processing of rural housing loans will improve access for deserving families, and reforms to federally assisted housing programs will ease burdens for landlords and improve access for residents.
H.R. 3700 Overview
This legislation provides significant benefits to taxpayers, homebuyers and the real estate market by:
- Removing a burdensome and expensive FHA Condo approval process
- Reducing FHA restrictions on the number of condos available to homebuyers
- Permanently streamlining Rural Housing Service loan processing
Details and Background
Why should REALTORS® care?
H.R. 3700 makes much needed reforms to the Federal Housing Administration (FHA) condominium loan program, federal assisted housing programs and Rural Housing Service loan programs. H.R. 3700 was passed by the U.S. House 427-0. Despite passing with NO OBJECTIONS, the U.S. Senate has not acted on H.R. 3700.
Urge your Senator to support future homebuyers and bring H.R. 3700 to the Floor of the Senate. Fill out and submit the NAR Call for Action and be part of the effort to press senators on this important issue.
More Information on NAR's efforts to pass H.R. 3700: