Rates and fees
Multifamily loan programs
Construction loans
Fees
- Commitment fee
- $1,000 for loan amounts less than $500,000. $5,000 for loan amounts of $500,000 or more. Commitment fee is paid when the commitment letter is signed. Commitment fee is credited toward legal and construction inspection fees if loan closes.
- Points
- None
- Application fee
- $250
- Legal
- Borrower pays all legal fees of lender
- Construction inspection fee
- Borrower pays construction inspection fees of lender
- Other charges
- Borrower pays for other third-party expenses (e.g. appraisal).
Rate
150 basis points above the Agency's cost of funds. The rate may be fixed or variable, which will be determined on a project-by-project basis. If the rate is variable then it will be adjusted once a month; at closing, a not-to-exceed rate cap will be set.
Note
All fees and interest rate spreads on tax-exempt bond financed projects are subject to arbitrage limitation.
Permanent loans
Tax-exempt and taxable
Fees
- Commitment fee
- $1,000 for loan amounts below $500,000. $5,000 for loan amounts of $500,000 or more. Commitment fee is paid when the commitment letter is signed. Commitment fee is credited toward points if the loan closes.
- Points
- 1.5% of loan amount
- Application fee
- $250
- Legal
- Borrower pays legal fees of lender
- Construction inspection fee
- Borrower pays construction inspection fees of lender
- Other charges
- Borrower pays for third-party expenses (e.g. appraisal).
Rate
150 basis points above the Agency's cost of funds. The rate is fixed at the time VHFA issues the bond, whether this happens before or after the loan closes.
Note
All fees and interest rate spreads on tax-exempt bond financed projects are subject to arbitrage limitations. Cost of bond issuance is paid by VHFA, but is included in the interest rate spread. There is a minimum 15-year lock-out provision on all permanent loans.
Zero-percent loans
Fees
- Points
- None
- Other charges
- Any third party fees incurred by the Agency as a cost to provide a zero-percent loan shall be paid by the borrower.
Loan restructurings
(i.e. Re-writing terms of existing debt with existing borrower for portfolio projects)
Simple modifications that include changes in rate or extension of maturity date but that don't involve the issuance of new bonds shall not be charged points.
Fees
- Points
- 1% of loan amount
- Legal
- Borrower pays legal fees of lender
- Other charges
- Borrower pays for other third-party expenses (e.g. appraisal)
Term
The lockout provision is the lesser of the remaining term of loan or 15 years.
Note
If restructuring existing debt also includes the financing of new and/or additional debt, 1.5% in points shall be charged on the entire amount of the debt including the existing balance that was refinanced, and the rate described above for construction and permanent loans will apply to the total new outstanding balance(s).
Housing Credit program
Ceiling credit (9%) and out-of-cap credit (4%) program
Fees
- Application fee
- $250
- Reservation fee
- 4% of the annual credit amount
- Compliance monitoring
- Effective for calendar year 2009, and billed in arrears, $6 per tax credit unit per month during the compliance period (the first 15 years) and $3 per tax credit unit per month during the extended use period (beginning in year 16 and continuing for as long as tax credit monitoring activities are required and performed by the Agency.) The amount of this fee is subject to change from time to time during the life of the tax credit monitoring period.
