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  • RAD Financing

    Printable full term sheet

    Terms

    • 35 year maximum term
    • 35 year maximum amortization

    Fees

    • Origination Fee is 1.5% of mortgage loan commitment amount for permanent financing.
    • Loan Structuring Fee (non-refundable) of one-half of the origination fee is payable upon acceptance of the Mortgage Loan Commitment; this fee is credited toward the loan origination fee at closing.
    • Application Fee of $250 for developments of 24 units or fewer, or $500 for developments of 25 units or more.

    Fees are subject to periodic review and change.

    Eligibility

    • Eligible borrowers include Public Housing Authorities (PHAs) and non-profit affiliates.
    • Developments must be residential rental housing for families, elderly, or people with disabilities. The development must previously have been funded under HUD public housing and is converting to Section 8 Project Based Rental Assistance under HUD’s RAD program. 
      • Financing may be for:
        • Acquisition and/or rehabilitation of existing buildings
        • New construction (replacement housing)
      • WHEDA has other loan products specifically designed to finance developments using the 4% LIHTC or 9% LIHTC programs. Please consult a WHEDA Commercial Lending Officer. 

    Minimum Set-Aside Units

    20% of all units set-aside for households with incomes not exceeding 50% of County Median Income (CMI). 
    Or 
    40% of all units set-aside for households with incomes not exceeding 60% of CMI.

    Total rent plus utilities cannot exceed 30% of the respective CMI levels.