As FHA overcomes financial hurdles, developers breathe easier

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

Quadro at Design District and Rainmundo Onetto

Alta Developers launches sales of Quadro at Design District

Jonathan Sobel and his units at the Surf Club (Credit: Realtor and Redfin)

Ex-Goldman Sachs partner picks up Surf Club condos at a discount

Elliot Eisenberg and his Aventura condo

Telling move: Housing expert relocating to South Florida for tax savings

From left: Andrea and Renzo Rosso

Diesel family dishes on Wynwood condo project

Bruce Eichner and his Continuum penthouse (Credit: Douglas Elliman)

Bruce Eichner slashes listing on his Continuum penthouse, and eyes next Miami project

Rendering of Legacy Hotel and Residences with Dan Kodsi and Peggy Olin

Developer Dan Kodsi plans hotel-condo tower at Miami Worldcenter

Chad Carroll, Cyril Matz and Fernando Alves with unit 2501 at Oceana Bal Harbour

Brazilian retail mogul buys Oceana Bal Harbour condo for $8M

Ugo Colombo, Brickell Flatiron and Vanessa Grout (Credit: Golden Dusk Photography)

Ugo Colombo completes 64-story Brickell Flatiron condo tower