As FHA overcomes financial hurdles, developers breathe easier

New York /
Nov.November 16, 2009 12:19 PM

With the Federal Housing Administration struggling to meet its reserve fund regulations, city developers were holding their breath, hoping that the organization, which allows apartment buyers to put as little as 3.5 percent down, would continue to back loans. The organization’s troubles have shed new light on the importance of FHA, which some city developers say has become integral to the financial security of the condo business. “If you asked me about FHA a few years ago, I would have looked at you funny,” David Kramer, principal of the Hudson Companies, the developer of FHA-approved condominium Third + Bond in Carroll Gardens, said. “Now we have gotten involved in making sure that as many financing options as possible are available for buyers, and that is where FHA comes into play.” In the wake of the FHA’s financial woes, regulators have chosen to actually loosen standards, Crain’s reported, with condos needing just 30 percent of units pre-sold, as opposed to 50 percent, to qualify for FHA as of Dec. 7.


Related Articles

arrow_forward_ios
CBRE CEO Bob Sulentic. (CBRE, Getty)
CBRE’s 2020 earnings down 8%
CBRE’s 2020 earnings down 8%
January is the second consecutive month of increase in new home sales. (Getty)
Sales of new homes up 4.3% in January
Sales of new homes up 4.3% in January
(iStock/Illustration by Alexis Manrodt for The Real Deal)
US home prices are more than 5% too high: Fitch
US home prices are more than 5% too high: Fitch
The Texas snow storm was partly responsible for the decline in mortgage applications. (Getty)
Texas storm, increasing rates freeze home mortgage market
Texas storm, increasing rates freeze home mortgage market
330 Sackett Street and 72 Hicks Street (Compass, iStock)
Townhouses dominated Brooklyn luxury contracts — again
Townhouses dominated Brooklyn luxury contracts — again
Elliott Management's Paul Singer (Getty, iStock)
Some Wall Street investors trade NYC for South Florida
Some Wall Street investors trade NYC for South Florida
From left to right: Keller Williams president Marc King, Carl Liebert, CEO of KWx, the parent holding company of KW and Gary Keller, executive chairman, KWx and Keller Williams. (Keller Williams/Illustration by Kevin Rebong for The Real Deal)
Keller Williams shakes up its C-suite
Keller Williams shakes up its C-suite
(iStock)
US home prices jump 10.4% in best year since 2013
US home prices jump 10.4% in best year since 2013
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...