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Learn more about Mortgage Relief Resources

Rental Housing Lending Process


Are you ready to apply for financing? We can help. One of our experienced Development Officers will collaborate with you along the way. We also have online resources to guide you through the process.

The Loan Process Step-by-Step

  • Getting Started: Find an Approved Mortgage Broker

    An approved mortgage broker will determine the best multifamily financing program for your development and provide help along the way.

  • Complete an Application

    Complete an online multifamily loan application. There are different types of loan applications depending on the proposed development. Your broker will help make sure you submit the correct application and all the required documents.

  • Include Required Plans

    The application is not complete without a hard-copy, full-size set of plans and specs that are considered 85% complete. This includes the scope of work, our minimum design and construction requirements, itemized cost estimates, a Phase 1 Environmental Site Assessment and other required reports, depending upon the type of project.

  • Submittal Process

    Next, your broker will help you submit your documents securely via Procorem. The application must include a non-refundable application fee of $10,000. Once everything is submitted, we will confirm receipt and do a preliminary assessment. Your development officer will then present the proposal to the Loan Review Committee. If deemed appropriate for Virginia Housing, the deal will move onto underwriting.

  • Loan Underwriting Process

    We will perform a market analysis to ensure the proposed rents and operating expenses are consistent with similar multifamily properties in the area.  All proposed agreements, association documents, proffers, ground leases, easements and any other related documents will be reviewed.  During underwriting, the architectural and engineering review process is also taking place. This allows us, the architect and the property developer to review design details and cost estimates.

  • Loan Review and Approval

    Loan underwriting concludes when an agreement is reached regarding the loan amount, terms and special conditions. If approved by the Loan Review Committee, we will issue a commitment along with a complete set of loan documents. The signed commitment and fees should be returned by the specified date.

  • Rate Lock

    A rate lock may occur once we receive the executed commitment, required loan fees, evidence of site plan approval, executed construction contract, a signed set of plans and specs and any other pre-rate lock conditions. Once the rate is locked, the loan must close within a specific time frame.

  • Loan Closing 
    • Your attorney will work with Virginia Housing’s Legal Department to close the loan. Your attorney will fill in the required information on the previously received closing documents and return them in draft form for review. Virginia Housing’s Legal Department will create final drafts for signature by the borrower. You do not have to be present to close. Documents will be delivered among appropriate parties by mail or overnight delivery. Funds are wired to and released through the closing attorney / title agent.
  • Construction Loan Draws 

    Virginia Housing conducts monthly inspections and processes construction draws using proprietary forms that are completed by the general contractor and the owner. Virginia Housing will verify units of work in place as the basis of the general contractor’s draw as well as soft cost invoices submitted by the owner. Virginia Housing strives to release the approved construction draws within one week after receiving a properly completed request.

Note: Virginia Housing retains all loan servicing, asset management and compliance functions in-house. If you have questions, contact us.