UPDATE 5-D.R. Horton misses estimates, shares flat

* Q2 loss 34 cents/share vs Street view of 31-cent loss

* Homebuilding revenue $775.3 mln vs $1.62 bln

* Terminates revolving credit facility

* Shares flat after 9 pct rise in regular session (Adds credit facility details)

NEW YORK, May 4 (Reuters) - Homebuilder D.R. Horton Inc (DHI.N) reported a narrower second-quarter loss on Monday as charges to write down the value of its land declined, but its results still missed analysts' estimates.

The Fort Worth, Texas-based builder posted a loss of $108.6 million, or 34 cents per share, for its fiscal second quarter ended March 31, compared with a loss of $1.3 billion, or $4.14 per share in the year-earlier quarter.

Analysts on average had expected a loss of 31 cents per share, according to Reuters Estimates.

The results included $48.1 million in land write-downs, down from $834.1 million in last year's second quarter.

Homebuilding revenue fell to $775.3 million from $1.62 billion, as closings fell 47 percent to 3,585.

"Market conditions in the homebuilding industry are still challenging, characterized by rising foreclosures, high inventory levels of both new and existing homes, increasing unemployment, tight credit for home buyers and eroding consumer confidence," said Donald R. Horton, chairman of the board.

The company also announced the termination of its revolving credit facility, which would have matured in 2011. D.R. Horton does not see a need to borrow from the facility for the remainder of its term and expects to save over $3 million annually by terminating it, the company said in a statement.

"This means they're going to go without a net," said analyst Vicki Bryan of Gimme Credit, a bond research firm.

She suspects the company decided to go without the facility because its banks would have tightened the terms by requiring an interest reserve and assets to secure the line.

D.R. Horton could not be reached for comment.

She suspects the company did not renew its facility because its banks would not do so without tightening the terms by requiring an interest reserve and assets to secure the line.

D.R. Horton could not be reached immediately for comment.

Dispensing with the facility will put pressure on the company's cash balance, because it had used the facility mainly to back its letters of credit. Without that backing, D.R. Horton will need either to forego letters of credit or to back them with its own cash, Bryan said.

The company had a cash balance of $1.5 billion at March 31.

D.R. Horton's shares, which had risen 9 percent to close at $13.49 in the regular session on the New York Stock Exchange, were little changed in after-hours trading. (Reporting by Helen Chernikoff; Editing Andre Grenon, Tim Dobbyn, Richard Chang)