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FHA approved projects should perform better.

By
Real Estate Broker/Owner with Phoenix Urban Living

FHA has long been a great vehicle for first time home buyers to purchase property. Recent changes in legislation has made it easier and more difficult at the same time for people to qualify for FHA financing (leave it up to legislators to solve a problem and then create another). They've increased the down payment and FICO requirements but have dropped certain project requirements. If your an urban buyer looking for an FHA approved project, there are very few options that will appeal to you. Most are more traditional, Arizona style large condominium projects that are away from the core and mass transit. However, there are a few unique projects in downtown Phoenix nestled neatly in the urban landscape like Evergreen 9 and Portland 38 that are FHA approved. I believe that since these are really the only architecturally unique, FHA approved projects that are close to downtown Phoenix that this will add to property values within those communities. FHA regulations are only getting more challenging and existing approved projects should benefit from these newer regulations. The same will hopefully be true of Century Plaza. At one point the project was FHA approved and hopefully the new owners will continue to pursue FHA approval. Since getting a loan isn't what it used to be and the largest growing segment of buyers is FHA buyers then the properties should become much more desirable. This is also a good strategy for an investor looking to buy. If a project is FHA approved then the largest group of buyers would qualify to purchase in that project. As an investor that spells liquidity. Something to keep in mind. M.

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