Why Obtain FHA Approval
For Your Development?
In 2006 FHA loans accounted for a mere 1.7%
of all mortgages. The maximum FHA loan amount
for a condominium was limited to $369,000.
The wide availability of conventional mortgages
with 1) higher loan limits, 2) little or no
down payment required and 3) insubstantial
income documentation requirements made FHA
loans unattractive by comparison. 
Times have changed and FHA loans now account
for almost half of all new mortgages.
A primary reason for the significance of
FHA loans today is the large increase in
the maximum FHA loan amount, which is now
$793,750. Also, the availability of conventional
loans, especially the high-risk variety
that was so infamously prevalent, has dried
up.
The down payment required for an FHA loan
today is only 3.5%, while current conventional
loan guidelines and mortgage insurance companies
require a 20% to 25% down payment for condominiums.
Today, those who choose not to have their
condominium project FHA approved are in
essence limiting the pool of potential home
buyers to only those that can make a 20%
or greater down payment.
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