M/I Homes Extends Credit Facility to 2030, Expands to $900 Million
M/I Homes, Inc. , one of the United States’ leading single-family homebuilders, has announced a significant amendment to its credit agreement, reflecting both the company’s financial strength and its strategic outlook. Under the terms of the amendment, the company’s revolving credit facility has been extended from its previous $650 million limit to $900 million, while also lengthening the maturity date to September 2030. Importantly, as of the closing date of the amendment, the company reported no outstanding borrowings under the facility, underscoring its already solid balance sheet and disciplined capital management.
A Strategic Step in a Strong Financial Position
Robert H. Schottenstein, Chief Executive Officer and President of M/I Homes, highlighted the importance of the amendment:
“We are very pleased to announce the amendment and extension of our existing credit facility. Our financial condition is very strong with zero borrowings under our existing credit facility, a cash position of $800 million, homebuilding debt-to-capital of 18%, and a net debt-to-capital ratio of negative 3% at June 30, 2025. Extending our credit facility to a five-year term and the $250 million of increased commitment amounts from our lenders provides additional liquidity and financial flexibility that further strengthens our company as we look to the future.”
This move demonstrates both confidence from M/I Homes’ lending partners and the company’s long-term commitment to financial stability. With robust cash reserves and one of the lowest leverage profiles in the homebuilding sector, M/I Homes is well-positioned to navigate market volatility, pursue new land opportunities, and continue building high-quality homes across its extensive footprint.
Why the Credit Facility Matters
For homebuilders, access to liquidity is essential for funding land acquisitions, managing construction cycles, and maintaining flexibility during changing economic conditions. The expansion of M/I Homes’ credit facility from $650 million to $900 million marks a 38% increase in borrowing availability, offering the company greater optionality as it evaluates growth opportunities.
Equally important is the extension of the maturity to September 2030. In an environment where interest rates and credit conditions can shift quickly, locking in a long-term facility reduces refinancing risk and ensures stability for years to come. With no current borrowings, the facility functions as a strong safety net, available should the company need it.
A Snapshot of M/I Homes’ Financial Strength
As of June 30, 2025, the company reported:
- Cash position: $800 million
- Homebuilding debt-to-capital ratio: 18%
- Net debt-to-capital ratio: -3%
These figures reflect a conservative capital structure and a company operating from a position of strength. In particular, a negative net debt-to-capital ratio indicates that M/I Homes’ cash reserves exceed its outstanding debt obligations, a rare achievement in the homebuilding industry.
Such a balance sheet provides M/I Homes with a competitive edge. At a time when some homebuilders are facing financing constraints due to market headwinds, M/I Homes is able to strategically deploy capital into new communities, invest in land pipelines, and fund growth initiatives without over-reliance on external financing.
Geographic Reach and Market Presence
M/I Homes has established itself as a leading homebuilder in key U.S. growth markets. The company operates in:
- Midwest markets: Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan.
- Florida markets: Tampa, Sarasota, Fort Myers/Naples, and Orlando.
- Texas markets: Austin, Dallas/Fort Worth, Houston, and San Antonio.
- Southeast markets: Charlotte and Raleigh, North Carolina; Nashville, Tennessee.
This diversified geographic footprint allows the company to balance exposure across markets, benefiting from both strong demand in high-growth Sun Belt regions and steady activity in more established Midwest markets. By spreading its operations, M/I Homes can better withstand regional economic cycles while capitalizing on demographic shifts and housing demand trends.
Industry Context: Housing Market Dynamics
The U.S. housing market continues to face challenges, including rising mortgage rates, affordability constraints, and limited housing supply. However, demand for new homes remains resilient in many markets, particularly in areas with strong job growth, favorable demographics, and limited resale inventory.
For companies like M/I Homes, financial flexibility is key. Having an expanded and extended credit facility ensures that the company can remain opportunistic, acquiring land in desirable markets, adapting to consumer preferences, and maintaining construction activity even when market conditions fluctuate.
Moreover, M/I Homes’ strong liquidity gives it an advantage when competing for land parcels against smaller, less capitalized builders. In cyclical industries such as homebuilding, access to capital often separates long-term winners from those unable to weather downturns.
Leadership’s Vision
Schottenstein’s comments emphasize the company’s philosophy of maintaining a conservative capital structure while preparing for growth. The $250 million increase in borrowing availability is not just a backstop; it represents a strategic lever for growth, innovation, and resilience.
The company’s ability to report zero outstanding borrowings at closing sends a strong signal to investors and lenders alike. It reflects a disciplined approach to financial management while preserving optionality for future expansion.
As with all corporate announcements, M/I Homes included cautionary language regarding forward-looking statements under the Private Securities Litigation Reform Act of 1995. Terms such as “expects,” “anticipates,” and “plans” reflect management’s outlook but are inherently subject to risks.
The company outlined a range of potential risks that could influence future performance, including:
- Macroeconomic conditions and interest rate fluctuations
- Competition within the homebuilding industry
- Availability and cost of land, labor, and materials
- Government regulations, including zoning and trade policy
- Product liability and warranty claims
- Potential construction defects
- Market concentration risks in key geographies
These disclosures remind investors that while the expanded facility strengthens the company’s financial position, broader market dynamics and external risks remain important considerations.
The Road Ahead for M/I Homes
With its extended credit facility, strong liquidity, and low leverage, M/I Homes is positioned for continued success in a dynamic housing market. The company’s strategy blends prudent financial management with a forward-looking approach to growth.
In the years ahead, the additional capacity from the $900 million credit facility will likely support:
- Land acquisition: Ensuring a robust pipeline of future communities.
- Product diversification: Building homes across a range of price points to serve different buyer segments.
- Geographic expansion: Strengthening presence in high-demand regions.
- Operational resilience: Providing flexibility to adapt to changing market conditions.
For investors, lenders, and industry observers, this amendment signals confidence—not only from M/I Homes’ leadership but also from the financial institutions backing the facility. It underscores a key theme in homebuilding: the balance between growth ambitions and financial discipline.
