FHA will guarantee loans on $3 million NYC condos

The Federal Housing Administration was created in 1934 to make homeownership attainable for low- to moderate-income Americans. It did this by guaranteeing to mortgage lenders that if a borrower defaulted on an FHA-backed mortgage, the government would pay off the loan.

The government guarantee also enabled home buyers to make a much lower down-payment than would otherwise be the case.

But of course, all government programs and agencies gradually expand. And now the FHA has agreed to insure mortgages for buyers of a luxury New York City condo, where units list from $820,000 to $3 million. The guarantee will enable buyers to make a down payment of as little as 3.5 percent.

Remember this the next time you hear some socialist-statist bozo touting some great new gubmint program that he/she promises will do only what the pusher says today, and not a whit more.