Financing With Taxable Bonds
Our taxable bond financing provides fully amortizing, non-recourse mortgage loans that can also be paired with 9% Housing Credits. It’s ideal for mixed-income or mixed-use/mixed-income developments that offer both workforce and market-rate units.
If you’re looking for a fixed-rated construction loan with the ability to seamlessly convert to permanent financing, this may be a great option for you. These loans are available for private, for-proﬁt and not-for-proﬁt developers.
Multifamily Interest Rates and FeesRates are updated daily on our website. Rates are locked upon return of commitment and all fees.
Criteria for Financing
In addition to the criteria below, there are occupancy requirements that must be met as a condition of this financing.
- We may fund up to the lesser of 90% loan-to-value 95% total approved development cost or 100% of total development cost for not-for-profit developers (excluding developer’s fees). These loan amounts should be viewed as limits and not as guaranteed funding levels.
- Minimum 1.10 debt coverage ratio.
- Loans may be permanent immediate delivery, permanent forward delivery, or construction to permanent financing.
- 1% combined processing and financing fee on any permanent only loan.
- 2% combined processing financing fee on all construction to permanent loans; lower fees on the portion of such loans more than $7.5 million.
- Virginia Housing pricing assumes a 30-year fully amortizing loan; however, amortization periods up to 35 years will be considered on a case-by-case basis.
- A $10,000 application fee must be submitted with the loan application. This is inclusive of the processing fee and is non-refundable.
- All loans are non-recourse.
- The application must be submitted through a Virginia Housing-approved mortgage broker.
Taxable Bond Financed Properties
This type of financing plays an important role in the development and rehabilitation of affordable rental housing in Virginia.
Check out some our case studies:
Contact us for more details.
Virginia Housing is a frequent issuer of bonds. As such, our rates include bond counsel fees, rating agency fees and bond underwriting fees, and require no bond insurance or additional credit enhancements.