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 Fees
Rates are updated daily on our website. Rates are locked upon return of commitment and all fees.Financing Details
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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.
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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.
Contact: MultifamilyNews@VirginiaHousing.com
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.