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Rates and Fees for Loans and Housing Credits

Fees

  • 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 other third-party expenses (e.g. appraisal, etc.)
  • Commitment fee: Due when commitment letter is signed.  This fee is credited toward points if the loan closes.
  • $1,000 for loan amounts less than $500,000.
  • $5,000 for loan amounts of $500,000 or more.

Points

  • None

Rate

  • Rate may be fixed or variable at the borrower's option.  Rates are determined on a project by project basis and are dependent on the term of the loan. 

Note

  • All fees and interest rate spreads on tax-exempt bond financed projects are subject to arbitrage limitation.

Tax-exempt and taxable

Fees

  • 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 other third-party expenses (e.g. appraisal, etc.)
  • Commitment fee: Due when commitment letter is signed.  This fee is credited toward points if the loan closes.
  • $1,000 for loan amounts less than $500,000.
  • $5,000 for loan amounts of $500,000 or more.

Points

  • 1.5% of loan amount

Rate

  • Rates are determined on a project by project basis, and are predominantly reliant on the issuance of tax-exempt or taxable rate bonds.

Note

All fees and interest rate spreads on tax-exempt bond financed projects are subject to arbitrage limitation. 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.

Fees

Other charges: Borrower pays other third-party fees incurred by VHFA as a cost to provide a zero-percent loan.

Points

None

Loan restructurings consist of the re-writing of terms of existing debt with existing borrowers for portfolio projects and other projects.

Fees

  • Legal: Borrower pays all legal fees of lender
  • Other charges: Borrower pays other third-party expenses (e.g. appraisal, etc.)

Points

  • 1% of loan amount.
  • Modifications that don't involve the issuance of new bonds, such as rate change or extension of the maturity date, shall not be charged points.

Term

  • The lockout provision is the lesser of the remaining term of loan or 15 years.

Note

If restructuring the existing debt also includes financing new and/or additional debt, 1.5% in points shall be charged on the entire amount of the debt. The rate described above for construction and permanent loans will apply to the total new outstanding balance(s).

Ceiling credit (9%) and out-of-cap credit (4%) program

Fees

  • Application fee: $250
  • Reservation fee: 4% of the annual credit amount
  • Compliance monitoring
    • $7 per tax credit unit per month during the compliance period (the first 15 years)
    • $4 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 VHFA.)

Note

The compliance monitoring fee is subject to change during the tax credit monitoring period.