U.S. expanding FHA-backed loans for condominiums

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The Department of Housing and Urban Development recently finalized new Federal Housing Authority condominium loan policies that vastly expand the scope of condo purchases that are eligible for lower-down-payment loans. The National Association of Realtors applauds the move, saying it will put the American Dream in reach for many more families. 

The Wall Street Journal | Laura Kusisto

The Trump administration is vastly expanding the scope of condominium purchases eligible for lower-down-payment loans.

[…] The FHA now insures a million home loans made by banks and other private lenders, the vast majority of which are for single-family homes. With the new rules, the agency estimates it could insure as many as 60,000 additional condo loans each year, on top of the 16,000 condo loans it backed in 2018.

In cities like Seattle, Austin and Denver, where single-family homes are increasingly out of reach for first-time buyers, condos are a more affordable alternative. The median price of an existing condo or co-op unit was just over $260,000 in June, compared with nearly $290,000 for the median existing single-family home, the National Association of Realtors said.

Read more here: U.S. Will Back More Condominium Loans Aimed at First-Time Buyers