T
he Perrie, a luxury condominium complex in Turtle Bay's Midtown Manhattan, is making waves by offering FHA financing options to its buyers. This unconventional move allows for lower down payments and more lenient credit requirements, typically reserved for first-time homebuyers with imperfect credit or limited savings. The 95 one-bedroom apartments at the Perrie start at $875,000, with three-quarters priced below $1.2 million.

    FHA loans in high-cost areas like Manhattan can reach up to $1.15 million, making them more accessible to buyers who might not have qualified otherwise. However, these loans come with additional costs such as private mortgage insurance, which can increase monthly payments. Despite this, the Perrie's developer, Cape Advisors, believes that offering FHA financing will make ownership more accessible for people with healthy incomes but limited savings.

    Industry experts are divided on the impact of FHA financing in luxury condominiums. While some see it as a good opportunity for high-income buyers, others argue that it doesn't address the root issue of disparate access to homeownership for certain groups. According to data, 31% of FHA loans last year went to borrowers of color, highlighting the need for more inclusive financing options.

    The Perrie's eligibility for FHA financing is seen as a potential trendsetter in the luxury condominium market. As one expert noted, "Anything that the developer can do that helps increase the amount of potential buyers" could lead to more complexes seeking similar eligibility.