As FHA overcomes financial hurdles, developers breathe easier

Miami /
Nov.November 16, 2009 02:18 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
2201 Collins Avenue (Google Maps)
Zaha Hadid’s former W South Beach condo sells — again
Zaha Hadid’s former W South Beach condo sells — again
Shoma Group's Masoud and Stephanie Shojaee; renderings of new North Bay Village (Shoma Group, Getty)
Shoma launches sales of planned North Bay Village condos
Shoma launches sales of planned North Bay Village condos
El-Ad National Properties Noam Ziv with Alina condominium
El-Ad nabs $100M construction loan for Alina condos in Boca
El-Ad nabs $100M construction loan for Alina condos in Boca
Two Roads' Reid Boren and Taylor Collins with rendering of the Edition Residences Edgewater (Two Roads Development)
Two Roads launches sales of Edition-branded Edgewater condos
Two Roads launches sales of Edition-branded Edgewater condos
Fontainebleau Development's Jeff Soffer and Brett Mufson, with the Regency Condominium at 250 Beach Road in Tequesta (Regency)
Soffer pays $100M for condo building on Jupiter Island
Soffer pays $100M for condo building on Jupiter Island
Clockwise from top left: One Sotheby’s Jorge Uribe, Compass' Ida Schwartz, Fortune International Group's Edgardo Defortuna and Royal Palm Companies' Dan Kodsi (Illustration by Kevin Rebong for The Real Deal)
Slowdown hits South Florida’s hot resi market: Here’s what that means
Slowdown hits South Florida’s hot resi market: Here’s what that means
Murano at Portofino (Facebook, Getty)
“Mind-boggling”: Condo owners in South Beach face millions of dollars in special assessments
“Mind-boggling”: Condo owners in South Beach face millions of dollars in special assessments
Ricardo Vadia, Jon Paul Perez, and Oscar Rodriguez with District 225
Developers score $76M construction loan for Airbnb-branded condos in downtown Miami
Developers score $76M construction loan for Airbnb-branded condos in downtown Miami
arrow_forward_ios

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

Loading...