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Construction & Permanent Loans

VHFA offers construction and permanent mortgage financing for the development and preservation of affordable rental housing. VHFA loans bring with them rent restrictions and household income limits. VHFA multifamily permanent loans are subject to monitoring, insurance, budget, and audit requirements. Requirements vary by funding source.  Funds come from a number of sources including:

  • Proceeds from the sale of tax-exempt or taxable bonds
  • VHFA reserves
  • Federal Financing Bank (FFB)

Eligibility for multifamily financing programs

Housing sponsors must be organized on a limited profit or a nonprofit basis and approved by VHFA as qualified to own, construct, acquire, rehabilitate, operate, manage or maintain residential housing.

Eligible projects

Rental housing properties eligible for VHFA financing can include the following types of living units:

  • Transitional housing
  • Congregate homes for the elderly
  • Mobile home parks
  • Single Room Occupancy (SRO) units
  • Special needs housing
  • Emergency shelters
  • Residential care facilities
  • Cooperative housing
  • Nursing homes

Supplemental forms

VHFA underwriters will coordinate with applicants if and when these forms are required.

  • ENV-3; ENV-6 
    To be completed when VHFA provides financing with HUD Risk Share mortgage insurance.  These forms are requires as part of the HUD environmental reviews.
  • HUD 2530 
    To be completed when VHFA provides financing with HUD Risk Share mortgage insurance.  Sponsors should submit an unsigned Previous Participation Certificate (HUD 2530 form) draft so VHFA can get HUD feedback prior to securing the required signatures.
  • TEFRA form
    To be completed when VHFA provides tax-exempt bond financing.  This form is required so TEFRA notice can be published. 
  • Permanent Record Form 803 form
    To be completed when VHFA provides permanent financing.

Questions? For more information on development loans, contact Joe Erdelyi or Josh Slade