Pre-development loan programs
Multifamily Housing Ventures
Single Family Housing Ventures
Homeownership Pre-development Loan program
Fees
N/A
Rate
Interest rate is 3%. Interest is accrued and payable with
principal at construction closing
Multifamily loan programs
Construction loans — Tax-exempt and taxable
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
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).
Single Family
Construction Loan program
Construction loans — Taxable
Fees
Committment 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 legal
and construction inspection fees if loan closes.
Points
None
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 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. VHFA reserves the right
to increase the interest rate premium for projects that it
determines at its sole discretion to be higher risk.
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
$4 per tax credit unit per month for as long as tax credit
monitoring activities are required and performed by the Agency.
At a minimum, the term of the tax credit monitoring period
shall be 15 years. The amount of this fee is subject to change
from time to time during the life of the tax credit monitoring
period.
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