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Financing With Tax-Exempt Bonds

Image by Barry Harley Photography, courtesy of APAH


Tax-exempt bond financing is available for the development, acquisition and rehabilitation of affordable housing with 4% Housing Credits. If you are interested in this type of financing, please note it is federally regulated and has income limits and rent requirements.

Developers must choose to rent either 20% of the units to households with income less than or equal to 50% of the area median income, or 40% of units to households with income less than or equal to 60% of the area median income. The remainder of the units may be rented to households with income up to 150% of the area median income.

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.


The Residences at North Hill transformed 33 acres of undeveloped land in Alexandria into a vibrant, walkable community.

Market Heights provides new housing for households with incomes at or below 40% to 60% AMI.

Tax-Exempt Financing Details

  • Criteria for Financing

    In addition to the criteria below, there are also specific occupancy requirements that must be met as a condition of this financing.

    • We may finance 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.
    • A construction loan converts into a permanent loan.
    • 2% combined processing and financing fee on all construction to permanent loans.
    • Virginia Housing pricing assumes a 30-year fully amortized 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.
Contact a Virginia Housing associate for more details.