By David Swedelson, Partner at SwedelsonGottlieb, Community Association Attorneys
Community Associations Institute (CAI) announced today that on Friday, July 29 President Barack Obama signed H.R. 3700, the Housing Opportunity through Modernization Act. H.R. 3700 is now federal law.
CAI reports that H.R. 3700 reforms the process used by the Federal Housing Administration (FHA) to determine if condominium unit owners qualify for a mortgage with FHA insurance. FHA does not originate mortgage loans, but instead insures mortgages against default.
“FHA-insured mortgages are widely used by first-time and minority homebuyers to purchase a home. In 2009, FHA changed its condominium qualification rules, leaving the majority of condominium homebuyers ineligible for FHA-insured mortgages. H.R. 3700, which CAI strongly supported, is expected to expand the number of condominiums where borrowers can use an FHA-insured mortgage to purchase a home.”
David Swedelson is a condo lawyer and HOA attorney and a respected expert in community association law. He can be reached via email: firstname.lastname@example.org