FHA becomes major player in apartment lending

Demand for apartment loans has made the Federal Housing Administration a major player in multifamily lending.

The Department of Housing and Urban Development reported that FHA insured a record $10.9 billion of multifamily loans during the first nine months of fiscal year 2011, up from $8.7 billion a year ago.

“FHA has never been more relevant in making sure the multifamily apartment marketplace continues to function even during these tough economic times,” said Carol Galante, FHA acting commissioner.

From October 1 to June 30, the agency endorsed 1,050 multifamily loans that will finance the construction or renovation of 151,300 units.