Why is the FHA backing mortgages for $800K + Condos in New York?

The FHA, created in 1934 to make homeownership attainable for low- to moderate-income Americans, is providing a lifeline to new Manhattan luxury condominiums after sales stalled. Buildings featuring pet spas, concierges and rooftop lounges are applying for agency backing to unlock bank financing for purchasers. The FHA guarantees that if a homebuyer defaults on his mortgage, the agency will pay it.

How is this low income housing and why is the government backing it?

http://www.bloomberg.com/news/2010-08-13/manhattan...

10 Answers

Relevance
  • 10 years ago
    Favorite Answer

    Because the FHA is paying off some political debt

    Source(s): May God Bless you and keep us all safe from the progressive axis of evil,0bama,Pelosi&Reid
    • Login to reply the answers
  • Because there's nothing "luxury" about an $800k condo in Manhattan! You obviously have no clue as to property values in ultra-high-cost areas like Manhattan. Luxury kicks in well on the sunny side of $5,000,000 in The Big Apple.

    • Login to reply the answers
  • Anonymous
    10 years ago

    The Federal Housing Administration agreed in March to insure mortgages for apartments at the 98-unit Gramercy Park development, known as Tempo. That enables buyers to make a down payment of as little as 3.5 percent in a building where apartments range from $820,000 to $3 million.

    • Login to reply the answers
  • You have obviously not seen the housing costs in Manhattan, have you??

    What do I mean? Well, my parents in North Central Wisconsin purchased a home twice the size of the home my Aunt and Uncle purchased in a Chicago Suburb for about half the cost.

    What is the biggest lesson in real estate??? Location, location, location.

    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    10 years ago

    For being pro Business I have noticed that Cons /Republicans are the worst business people in the world .

    What do you think that only wealthy people should buy homes .

    News FLASH there are not that many wealthy people .

    If Not for FHA the housing industry would collapse

    • Login to reply the answers
  • 10 years ago

    Because $800,000 for a Manhattan condo IS low-income housing.

    • Login to reply the answers
  • Anonymous
    10 years ago

    They can't let Fannie Mae and Freddie Mac have all the fun, can they?

    Ever since Madoff got a free pass from the Clinton administration, our financial sector has been like the Wild West. Sooner or later we'll have to send in Wyatt Earp and Doc Holliday to restore law and order.

    • Login to reply the answers
  • 10 years ago

    He saw Manhattan condo and FHA and got all excited.

    • Login to reply the answers
  • Jody
    Lv 5
    10 years ago

    Have you ever priced real estate in Manhattan? 800,000 there IS low income.

    *edit* Rod, you beat me to it, by like six seconds! LOL

    • Login to reply the answers
  • Anonymous
    10 years ago

    FHA is not limited to low income loans.

    • Login to reply the answers
Still have questions? Get your answers by asking now.