Repair vs. Replacement
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 residents from the owner not being able to make capital improvements over time, the loan establishes an initial deposit to a replacement reserve and an ongoing contribution to the replacement reserve. This makes sure the owner always can replace that mechanical item that goes out, and gives the landlord the opportunity to replace,...
Read MoreOrganizational 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 categories that cause some confusion is “Organizational Costs”. Think of it this way: You are going to incur costs to put your partnership or ownership entity into place. For yourself or your investors, the rights and duties must get spelled out as well as who get what ownership percentage, whether it is a preferred interest, who gets to...
Read MoreAbout Daniel R. Crain
Danny Crain has spent most of his 30-year career involved with apartment financing and mortgage banking. Just prior to founding Crain Mortgage Group, LLC in 2009, Danny spent 10 years as Senior VP for GMAC Commercial Mortgage Company and was successful in closing over $500,000,000 in FHA multifamily loans. His career closings, however, well exceed $2 billion.
Intimately involved in multifamily financing since 1981, Danny actually helped close the third ever coinsurance loan in the country in 1983, making him a bit of a mortgage pioneer. Other work experience includes originating FHA loans in the Southwest for TRI Capital, overseeing the liquidation of 580 subsidiaries of failed Savings & Loans as an Asset Manager for the Resolution Trust Corporation, and employed by Fannie Mae in the Multifamily area as a Senior Investment Officer for the seven state area centered in Texas.
Danny earned his Juris Doctorate in 1977 and is a member the Texas Bar Association, Oklahoma Bar Association and the California Bar Association. He also maintains his real estate broker's license in both Texas and Oklahoma.
