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2005-017
Red Mortgage Capital Refinances $5.1 Million in FHA Loans for Two West Virginia Projects
Columbus, OH, July 13, 2005 – Red Mortgage Capital, Inc. , the mortgage lending arm of integrated capital provider RED CAPITAL GROUP and the country’s 4 th ranked FHA lender, recently closed FHA insured mortgage loans to refinance two existing apartment buildings in West Virginia.
Summersville Place is a 102-unit, three-story project located approximately 40 miles northeast of Beckley , West Virginia . The three-story building was constructed in 1981 pursuant to FHA Section 221(d)(4) mortgage insurance. A $3,192,500 refinance loan was processed and funded by Red Mortgage Capital, Inc. pursuant to FHA’s Section 223(a)(7) expedited refinance program for existing insured HUD loans.
Wheeling Station , located in Wheeling, West Virginia, is a 60-unit property and was similarly refinanced through FHA’s Section 223(a)(7) program. Red Mortgage Capital, Inc. processed and funded a $1,943,000 refinance loan for the eight two-story buildings that originally were constructed in 1982 with FHA mortgage insurance. Both Summersville Place and Wheeling Station provide affordable housing and are subject to Section 8 HAP Contracts. As a result of refinancing, the properties were able to significantly reduce their mortgage interest rates, resulting in debt service savings of more than 400 basis points. The loans were processed through the HUD-Charleston office.
James C. Flinn, Director of Red Mortgage Capital, Inc., said, "It is always a pleasure working with Kontogiannis and Associates. As well, the Charleston HUD office processed the loans expeditiously, thereby enabling the borrower to take advantage of the attractive interest rate environment, resulting in a significant reduction in annual debt service payments."
