Agency reduces barriers to financing, though restrictions still hamper some investments.
When an investor seeking FHA financing last August tried to buy a condominium unit in Telluride, Colo., the picturesque ski town nestled in the Rockies, the transaction fell through. Too much space in the project was devoted to non-residential commercial use.
“The project didn’t meet the condo-to-commercial ratio, so I lost the deal,” says George Harvey Jr., broker-owner of the Harvey Team in Telluride and vice chair of NAR’s Resort Committee. “The FHA has all these check boxes—you can’t do this, you can’t do that—and even for loans that aren’t FHA-insured, a lot of banks won’t make a loan on the idea that, if the FHA isn’t going to make it, they’re not going to either. So, anything the FHA can do to make condo financing a little easier would be really important.” Read more ....
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