Low Rate Environment is a Good Time to Cash Out
Many First Housing customers that own affordable and market rate properties are refinancing to reduce the interest rate and create “cash-out” proceeds that can be used to fund additional properties. This is also the case for owners of recently constructed properties. In one example, First Housing was able to provide a $21+ million loan through the HUD 223(f) insured mortgage loan program at 2.50% + MIP and extend the amortization to 35 years, resulting in cash out proceeds of $9.5 million. The low rate environment will not last forever, so it makes sense that owners are taking advantage of the opportunity to leverage capital for future projects.