Love Funding, one of the nation’s leading providers of multifamily housing loans, announced the closing of an $8.9 million loan refinancing for Providence Court Apartments, a 216-unit apartment complex in Pullman, Washington.
Brian Robertson, a senior vice president and director of correspondent services at Love Funding’s St. Louis headquarters, secured the loan through the Federal Housing Administration’s 223(a)(7) loan program. By utilizing FHA financing, Robertson enabled the property’s owner to lock in a low, fixed interest rate with a 35-year self-amortizing term.
Borrowing rates near historic lows are allowing multifamily property owners and developers to improve their cash positions by refinancing higher-rate mortgage debt. Providence Court, which was originally built in 1994 as a market-rate apartment development, will save more than $76,000 a year thanks to lower borrowing costs. In addition, the new mortgage will provide about $337,000 to the property’s replacement reserves.