Struggles exist for many young adults trying to become homeowners, and the burden of repaying their student loan debt is in part delaying their ability to buy, according to speakers at a regulatory issues forum on student debt and homeownership at the 2016 Realtors Legislative Meetings & Trade Expo in Washington, D.C.
The high-profile session discussing the impact student loan debt is having on young households’ ability to purchase homes was keynoted by U.S. Housing and Urban Development Secretary Julián Castro.
During his remarks, Castro announced some of the regulatory changes coming soon to ensure housing opportunities exist for young men and women, many of whom are currently repaying the loans they borrowed to earn a college degree.
Castro began his address by saying the prescription to the American Dream has always been working hard, saving your money and investing in yourself, often by getting a great education.
What has changed in recent times is that the third step — getting a great education — is more expensive than ever.
According to Castro, HUD is committed to working with its partners across the administration and in the housing community to explore additional changes that can help more Americans purchase a home.
That’s why last November, Federal Housing Administration Principal Deputy Assistant Secretary Ed Golding announced changes to condo rules that would address a lengthy and complex recertification process, owner-occupancy requirements and limits on the types of property insurance that FHA considers acceptable coverage.
Secretary Castro announced that the proposed condo rule has left the HUD building and is at the Office of Management and Budget for review.
“Today’s exciting news about the big changes coming to condos are a long-fought win for Realtors, and we’re eager to see it come to fruition,” said National Association of Realtors President Tom Salomone. “Realtors know that condos are an important option for buyers, especially for first-time buyers looking for affordable options in the marketplace.”
Castro concluded, “Realtors help make the dream of homeownership for so many Americans a reality, and HUD is committed to partnering with them to ensure that the hard-won progress we’re seeing in our housing market continues to grow for many years to come.”
— Alec Bruice is a licensed real estate broker with Santa Barbara Brokers and the 2016 president of the Santa Barbara Association of Realtors. Contact him at alec@goodland-realty.com or 805.637.5774. The opinions expressed are his own.