Real Estate

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-luxury-condos-embrace-federal-help-in-game-changer-for-sales.html

Because the FHA is paying off some political debt

There is a condo for sale for $169,000. I have 40K in equity saved. I currently have an under the table job. So, my job can not pay for it.

I was wondering if I could just pay 40K up front. Get a Bank Loan. And then Rent the Apartment to someone for say 1100 a month. Would that pay for the mortgage? Is this possible?

Any and all information would be helpful. How much in mortgage am I looking at?

you have to find out how much association fees are with that condo. Those things can sometimes break you. I wouldnt buy a condo just now. With 40k you can get much better investments without the headache. There is a stock right now called HTE. (its a candian oil & gas trust) with 40k you could buy that stock, get a monthly income of 545 dollars per month, and you sure couldnt get that kind of income with that condo, not to mention you gotta fix toilets if you buy a condo. Anyway, there are about a dozen other "canroys" (what they are nicknamed) out there that you could research, all of which pay high monthly dividends secured by all that oil up in canada, but i just think HTE is the best (i own it myself)

From:
http://www.bloomberg.com/news/2010-08-13/manhattan-luxury-condos-embrace-federal-help-in-game-changer-for-sales.html

<<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.>>

Now, some simple calculus for you, folks. Buying an $820,000 property (that’s the very cheapest of these luxury apartments) at 3.5% one will have to make a $5K payment (mortgage plus condo-fees) every month for 30 years:

http://www.mlcalc.com/#mortgage-820000-3.5-30-4.375-3000-1500-0.52-8-2010-none

Why is the Obama’s Federal Housing Authority — which can not even properly house all the poor eligible for the Section 8 assistance (http://www.ajc.com/news/atlanta/housing-crisis-reaches-full-589653.html ) — busying itself with and tying their budget on people, who can afford to spend $5K/month on an apartment and are interested in living next to a pet spa?

If the housing market moves down only 3.5%, these new mortgages will be "underwater" — the condo-owners will owe banks more, than the properties are worth. This is when people usually tend to "walk away" from the properties — and is why a normal downpayment is at least 10% (usually — 20%). When people do walk away, the FHA (read, the taxpayers) will be on the hook for the rest of the mortgages… And rich people will not shy from walking away at all (now that we no longer throw dead-beats into jail):

http://www.nakedcapitalism.com/2010/07/rich-defaulting-at-highest-rate.html

Is it fair to suspect, this is done to further destroy Capitalism? After the staggering success with Fannie Mae and Freddie Mac, who were told by the government to relax their rules:

http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html

to allow people buy unaffordable homes resulting in the housing bubble and the subsequent crisis of financial system:

http://www.ornery.org/essays/warwatch/2008-10-05-1.html

is the FHA now instructed to do a similar relaxation of rules to give Socialists another argument that "Capitalism does not work"?

Or is it simply a way to reward rich New York donors — both the buyers and the sellers of these luxury condos — for their support of the Democratic Party?

In a properly Free Market Capitalism, people who make a wrong bet — such as choosing to build a luxury building, when the buyers want a normal one — get punished by losing money. In Obama’s CRONY Capitalism, the government helps them out — at the taxpayers’ expense…
Correrafan! If you are referring to Bush’s use of Haliburton, well, that did not start with him (with Clinton rather) nor end with him (Obama keeps awarding the company no-bid contracts).

But I don’t recall anything like this thing on Bush’s watch — there is a completely new ground broken here, I think…

That can’t be true. He’s helping the working class. BAHAHAHAHA!!! It will be interesting to see what his followers think despite your many links.

I want build my own hotels near by Delhi. So, I am looking for Luxury Doors and Window Provider.

Why don’t try VEKA windows & doors. They are worldwide No. 1 in Luxury Doors and windows Provider. Fenesta does not have High End Products e.g. Vertical Sliding Windows, Lift & Slide Door & Slide Fold Doors. VEKA is best. I am using them in my 20 Projects.

Regards,

Arc. Priyanka Alagh

I have a very beautiful condo, at Piuma Beach, it’s a little bit north of Rio, in a closed condominium, with 3br/2bh, brand new construction, all paid off, we have pool, steam room, beach view, very secure area. far away from the craziness.,the best carnaval in the town.
gente Piuma e’ em Espirito Santo, perto de Vitoria.

Is this a question? Or are you trying to sale your house on Yahoo Answers?