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The housing market is booming again, and many stalled development projects are back in business. This is thanks, in part, to the increase in buildings approved for FHA lending.

“In New York, in general, while there were probably just a handful of FHA approved buildings two years ago, there’s probably about 80-100 at this point,” says Ross Weinstein, senior vice president of Exclusive Capital Consultants.

An FHA loan is actually a conventional mortgage that is insured and protected by the Federal Housing Administration.

Years ago, it was most commonly used by those with low credit scores, but now it is proving to be a vital tool to many who want to cash in on lower home prices.

“It’s good for first-time buyers and really good for folks or couples that have significant income and can afford the monthly payments, but are limited in down payment,” Weinstein explains.

While conventional loans usually require 20-25 percent down, with FHA, a buyer can put down as little as 3.5 percent, says Weinstein. They can also quality with lower credit score and non-traditional credit sources.

“So if you have a limited credit history, you are just starting out and you have only one credit card or one or two accounts, you can use other accounts to prove you are credit worthy, like a cell phone bill or utility bill, things of that nature,” he says.

FHA loans also allow for cosigners or guarantors, which you can’t find any more in conventional financing.

A lot of people think FHA loans are only for those with low to moderate income, but that’s actually not true. It doesn’t matter how much money you make, as long as you can make the monthly payments.

In the five boroughs, the FHA loan limit is just under $730,000, and Weinstein says nowadays you can find a low-interest rate FHA loan.

The one thing you should know is that you will have to pay a small monthly fee and one year of the mortgage insurance up front, but that can be rolled into the loan amount.

FHA approvals are also helping developers move units more quickly. Fannie Mae guidelines force purchasers to wait until a new building was 70 percent sold before they can close. Buyers in FHA-approved buildings can close after the building is only 30 percent sold.

Weinstein says this is why a lot of those stalled development projects are back on line again.

For more information on FHA loans, go to hud.gov

For a list of FHA condos in NYC, visit entp.hud.gov.