Affordable Advantage Mortgage

IHDA is providing fixed-rate first mortgage permanent loan financing for stabilized new construction, acquisition and moderate rehabilitation, or project refinance. IHDA developed Affordable Advantage to address holes in the marketplace for first mortgage financing of low- and moderate-income projects.

Affordable Advantage loans are available from $400,000 to $20,000,000 with a maximum term of 30 years. A+ Perm loans are non-recourse and can go up to 85 percent loan to value (LTV). A rate lock occurs 21 days before the closing of the loan with a prepayment lockout of 10 years. The development must be 90 percent stabilized occupancy for at least 90 days consecutively prior to the date of the issuance of the final commitment.

Affordable Advantage Target Properties:

• Project-based, Section 8 projects
• 80/20 projects with 80 percent market rate units and 20 percent of the units at 80 percent AMI
• 9% tax credit projects beyond their 15-year compliance period

Applicant Requirements:

• Projects must have a minimum of 20 percent of their units at or below 80 percent of the area median income (AMI).
• Applicants must supply sponsor studies and reliance letters from vendors that follow IHDA-published standards.
• A mortgage credit review is mandatory for the borrower, the borrower’s sponsor and each underlying entity/owner.

For more details, see the Affordable Advantage Term Sheet and current rates.

Contact:

Jim Weglarz
Manager of Business Development
312-836-5375
jweglarz@ihda.org