Applying for a Loan
- All applications must be submitted by an approved mortgage broker. The VHDA Development Officer is responsible for managing the relationship between VHDA, mortgage broker and developer.
- The application package must be submitted in an electronic format. Instructions on how to submit the electronic application is in the application itself. Submit the electronic application package via the Procorem site. (Learn more: Procorem access and use).
- Your application must be accompanied by a $10,000 non-refundable application fee (which also counts toward the processing fee).
- Download a loan application or access guides and forms.
Understanding the Loan Approval Process
- After your application has been received, a preliminary assessment by the Loan Review Committee determines if the deal is appropriate for VHDA and whether it should proceed to the next step: loan underwriting.
- Loan underwriting culminates in an agreement between VHDA and the developer that addresses the terms of the loan and any special conditions that may apply. The Development Officer will take the loan proposal back to the Loan Review Committee and seek approval to issue a commitment.
- If approved, a Commitment will be issued along with a complete set of legal documents. The signed Commitment should be returned by a specified date along with the fees detailed in the Commitment.
Locking Your Interest Rate
- Upon acceptance of the Commitment including payment of fees, final site plan approval, receipt of signed contract set of plans and specifications and receipt of fully executed VHDA construction contract with trade payment breakdown, you may lock your rate. Other conditions may be set forth by VHDA as a pre-requisite for locking the rate. Details of rate lock procedures should be discussed with your Development Officer.
Closing Your Loan
- Your attorney will work with VHDA’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. VHDA’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.
Making Draws From Your Loan
- VHDA conducts monthly inspections and processes construction draws using proprietary forms that are completed by the general contractor and the owner. VHDA 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. VHDA strives to release the approved construction draws within one week after receiving a properly completed request.
VHDA retains all rental housing origination, servicing, asset management and compliance functions in-house.
If you have any questions, please contact the Rental Housing Development Department.
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