Wednesday, December 5, 2012
A recent Federal Housing Administration rule change has opened the door for more government-insured mortgages for residential properties in mixed-use developments. Enacted in Septemeber, the rule change allows the government to back mortgages with down payments as low as 3.5 percent in
mixed-use buildings with commercial footprints of up to 35 percent, up from the previous 25 percent limit. Exceptions may be granted for projects in which as much as half of the space is commercial. Developers hope this, along with other FHA changes, will help revive condo sales.
(HT: Matt Yglesias)