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How to Use Stand-Alone Bond Financing
- Stand-Alone Bond Financing is designed generally for a single development.
- WHEDA will issue the bonds, either taxable or tax-exempt, and credit-enhance the bonds for a 1.35% fee built in to the loan rate. Borrowers can price their funds based on current market conditions, and customize their transaction regarding term, call provisions, and interest rate modes.
- The decision to use the Stand-Alone product vs. WHEDA's standard tax-exempt product should be done on a loan by loan basis. However, the most likely candidate will be a new construction development $4 to $5 million or larger, which can more efficiently carry the cost of bond issuance. See Frequently Asked Questions for an example.
- Consider your market. A market study helps you assess the market you are considering; will it work or not? Prepare according to the guidelines appropriate for development size: Market Study Guidelines
- Looking to finance an existing multifamily property? A capital needs assessment identifies and quantifies a building's current physical condition and future physical and financial needs. Find a provider and prepare according to the guidelines.
- Test your ideas by using the Feasibility Worksheet.
Determine the best scenario.
- Talk to a Senior Underwriter (SU) regarding any pre-application issues.
- Complete an application and send
it to WHEDA, along with the application fee.
- Your application will be reviewed and a SU will contact you within
4-5 days upon receipt.
- Always know that you may contact a SU during the process if you
have any questions.
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