As Sales Slump, Developers Tout Backing From FHA, Which Helps Buyers Qualify for Lower Down Payments
(Source: Wall Street Journal)
A nationwide glut of new condominiums has prompted developers to use new marketing ploys to sell their units. One increasingly popular move: get a government stamp of approval for the entire building.
The approval, from the Federal Housing Administration, means potential buyers can more easily qualify for a low-down-payment mortgage backed by the FHA — a highly coveted amenity in this era of tight credit.
Typically, it can take months for the FHA to approve a mortgage on a condo, partly because the building must meet numerous specifications and follow stringent guidelines. Beginning in October, the agency will further restrict which lenders can submit those loans.
Read Nick Timiraos’ full article “Condos Vie for the Good House-Lending Seal of Approval” in the Wall Street Journal (June 17, 2009).