Why Do We Have Concept Meetings

A couple of years ago, a developer went into an FHA office and pitched a deal to the staff.  This deal had the American Flag all over it-affordable, public good, a novel approach to handling foreclosures-something you would want to sing God Bless America over.  The...

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Land Value and the 221 (d) 4 Program

How are FHA and Al Capone the same?  Well, let me share a story… One night in the 1920s, Al Capone went to an Italian restaurant in Cicero, Illinois. The Capone entourage sat down, the waiter came up to the table to get the drink order and as he was leaving, Al Capone...

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Repair vs. Replacement FHA 223 (f)

If you are considering acquiring or refinancing an existing property with some age on it, you might be in the market for an FHA 223 (f) loan.  These loans offer fixed rate, assumable, non-recourse financing for up to 35 years.  But to protect themselves and the...

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Organizational Costs

For people new to the 221 (d) 4 program, some of the terms are unique to FHA, and the items they entail are often unclear. Making certain you have your soft costs included in the loan is important if you expect to get them paid through the loan. One of those...

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What is BSPRA?

One of the beautiful things about FHA financing is its continuing homage to the 1970s.  These loans have features that pre-date Disco, with fixed rate loans extending out 35 to 40 years…and non-recourse at that. I remember early in my career a borrower saying the...

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FHA: The Loan of Last Resort?

  FHA was once thought of as the lender of last resort, but now is often is the first and best option for many borrowers. So what changed? How did FHA get the reputation for being the lender of last resort? In the pre-1930s, single family homes were financed by...

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Amortizations & the FHA 223 (f)

Let’s talk Amortizations and the FHA 223 (f) I am getting a lot of calls by small investors interested in buying 16 to 100 unit properties.  Some have money; some do not.  The properties are ranging from 1930s to 1970s, mostly, with most being 1960s and 1970s...

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