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Tax-Exempt Bond Loan Variable Rate Term Sheet

Printable full term sheet


  • 30 year maximum term
  • 30 year maximum amortization


  • Origination Fees are 1.5%  of mortgage loan commitment amount for permanent financing only. 2.5% of the mortgage loan commitment amount for WHEDA construction financing with permanent financing.
  • Loan Structuring Fee (non-refundable) is one half of the origination fee, payable upon acceptance of the Mortgage Loan Commitment Letter; this fee is credited toward the loan origination fee at closing.
  • Application Fee is $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.


  • Eligible borrowers include for-profit entities, qualified nonprofits and housing authorities. All three of the following criteria must be met by the Borrower/Developer in order to qualify for the Variable Rate program. They include:
    1. Must have an adjusted Net Worth of $5 million minimum
    2. Must have Net Liquid Assets of $150,000 minimum
    3. Must have a minimum of 6 years of developer real estate experience for similar types of multifamily developments
  • Developments must be residential rental housing for families, elderly, or people with disabilities.
    • Eligible developments include:
      • Apartments, including townhouses,
      • Residential care apartment complexes (RCACs),
      • Community-based residential facilities (CBRFs),
      • And other housing types permitted by the Internal Revenue Code. Developments may include:
      • New Construction with permanent financing;
      • Acquisition with rehabilitation of an existing building; (The value of rehabilitation and essential equipment must equal or exceed 15% of that portion of the cost of buildings and fixtures financed with bonds); or
      • Refinance of an existing development for 501(c)(3) nonprofits.

Minimum Set-Aside Units

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

How to Use Tax-Exempt Bond Financing

  • Consider your market. A market study helps you assess the market you are considering; will it work or not? Prepare according to the guidelines in Appendix A.  
  • 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
  • Talk to a  Commercial Lending Officer (CLO) regarding any pre-application issues. 
  • Complete an application and send it to WHEDA, along with the application fee. Use the application checklist when completing your application package. 
  • Your application will be reviewed and a CLO will contact you within 4-5 days upon receipt.