FHA lending is about to enter a new era with the Obama Administration and changes to the FHA 232 and 242 programs. FHA has attempted during several administrations to stream line and centralize with limited success. The new LEAN program has promise and with FNMA and Freddie Mac lenders looking for big easy deals. FHA 223F may get busy.
The FHA 223(f) apartment refinance program is a good program for apartment owners, with ballooning conduit loans and it offers the owners a 35 year fixed rate loan. The FHA new construction programs should be hot, in tight apartment markets, with so many conventional lenders lowering loan amounts or shutting down construction loans.
Under the new commissioner, we may see more centralization and streamlining of the FHA 223F and 221D4 programs. The rates have come down in the last few weeks, this was due to the actions by the FED to buy GNMA securities and to lower federal funds rates to zero. Still, the spreads are still way over traditional spreads with no expectations that the "OLD NORMAL" will ever return.
Overall FHA lending could be in for more business and I hope the new administration brings in good people and continues to streamline, modernize and centralize the FHA programs similar to the FHA 232 LEAN program.
President Obama has stated that helping families with rent is more important than giving them unaffordable home ownership. I hope he expands rental help for those in need, so they can have enough money to live a normal life and have a chance to move up in society.
Good luck and God Speed Mr. President Barack Obama.
312 Florence Ave. Evanston, IL 60202
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Commercial Mortgage - Apartment - Healthcare
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