Condominium buyers have to abide by fresh lending rules. This has compelled many developers to scrap new projects. They fear many buyers will not be able to buy condominiums. The Federal Housing Administration has put a limit on the number of buyers who can avail of loans. There are also restrictions on apartments where there are many delinquent owners and tenants too. The strict lending norms have been designed to safeguard FHAs financial health. It may be noted that around 18 per cent of loans are in foreclosure or delinquent. FHAs cushion reserve has dipped below the minimum level required
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