234(c) loan

234(c) loan

FHA-insured loan for the purchase of a condominium unit.If the unit is in a building converted from apartments to condos,no insurance will be provided unless (1) the conversion was more than one year earlier, (2) the potential buyer was a tenant before conversion, or (3) the conversion is supported by a tenant's organization that represents a majority of the households in the project. Eighty percent of FHA-insured mortgages in the project must be to owner-occupants. [Otherwise,it is similar to the 203(b) program.]

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.