Despite signs that the housing market will continue to grow, rising land and construction costs have made the development of affordable housing increasingly challenging. To cater to the demand for affordable housing, the U.S. Department of Housing and Urban Development (HUD) has made it easier for property developers to access funds used by lenders underwriting Federal Housing Administration (FHA) deals. Prior to 2010, affordable housing was less than 10 percent of HUD’s business; as of September 2017, it achieved just over 30 percent with tailored programs and pricing changes that made it more attractive. This is moving one step in the right direction, but challenges persist for borrowers to navigate the increasingly complex lending landscape.

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