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
Fidi condo tower risks foreclosure as Trinity Place Holdings races to refinance
Fidi condo tower risks foreclosure as Trinity Place Holdings races to refinance
Fidi condo tower risks foreclosure as Trinity Place Holdings races to refinance
Omni’s Garden Spires residents allege leaks, mice infestations
Omni’s Garden Spires residents allege leaks, mice infestations
Omni’s Garden Spires residents allege leaks, mice infestations
Zillow will resume iBuying, but pause raises questions over model: analysts
Zillow will resume iBuying, but pause raises questions over model
Zillow will resume iBuying, but pause raises questions over model
(iStock)
LI rental review board setting standard for local rental permits
LI rental review board setting standard for local rental permits
Two penthouse apartments were sold at 150 East 78th Street with the intent of combining them (Compass)
Double penthouse asking $33M is priciest listing snapped up
Double penthouse asking $33M is priciest listing snapped up
Ford estate fetches $105M, a Hamptons “record” but far below ask
Ford estate fetches $105M, a Hamptons “record” but far below ask
Ford estate fetches $105M, a Hamptons “record” but far below ask
HRI founder Aaron Carr and Virginia Attorney General Mark Herring (Facebook, Getty)
Housing Rights probe pins voucher discrimination on VA landlords, brokers
Housing Rights probe pins voucher discrimination on VA landlords, brokers
School and office reopenings led to fewer reservations at the end of summer. (iStock)
Hamptons rental market had strong summer, begins to cool
Hamptons rental market had strong summer, begins to cool
arrow_forward_ios

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

Loading...