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.
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.
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 1.15 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 non refundable application fee must be submitted with the loan application. This fee will be applied toward the processing fee if the loan request is approved.
- All loans are non-recourse.
- The application must be submitted through a Virginia Housing-approved mortgage broker.
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Taxable Bond Financing Case Studies
This type of financing plays an important role in the development and rehabilitation of rental housing throughout Virginia.
Check out some our case studies: