First Mortgage Loan Programs

housing 3

Aurora St. Charles Senior Living (Aurora)

 

IHDA’s taxable loan products provide first mortgages with aggressive terms and interest rates, bringing low-cost capital to an increasingly underserved market and enabling the development community to improve the quality and affordability of rental housing in Illinois.

 

The FFB Mortgage is a risk-share partnership between the U.S. Treasury and the Department of Housing and Urban Development (HUD) that offers significantly lower interest rates to support the development and preservation of affordable housing. The program provides permanent first mortgage financing for refinance or acquisition/minimal rehabilitation. Find more information in the FFB Program Guidelines.

Credit Advantage provides construction and permanent mortgage loan financing for LIHTC projects with a maximum loan amount of $10 million. Loans over $3 million will be insured by the Federal Housing Agency – Housing Finance Agency Multifamily Risk-Sharing program. Find more information in the Credit Advantage Program Guidelines.

Affordable Advantage provides permanent first mortgage financing for stabilized new construction, refinance, or acquisition/minimal rehabilitation of up to $10 million. Loans over $3 million will be insured by the Federal Housing Agency – Housing Finance Agency Multifamily Risk-Sharing program. Find more information in the Affordable Advantage Program Guidelines.

One-Stop Plus structure provides a short-term, interest-only tax-exempt loan arranged by the Authority along with a permanent, taxable IHDA Federal Financing Bank (FFB) Mortgage with up to a 40-year fully amortizing loan term. The first mortgage is fully-funded at closing and used to collateralize the short-term tax-exempt loan. Full principal and interest payments begin at the initial closing and continue throughout the construction and permanent periods for the FFB First Mortgage. Certain conditions have to be met in order for the first mortgage to be insured under the FFB program, including a maximum rehabilitation limit of $40,500 per unit and only one major building system replacement allowed. Find more information in the One-Stop Plus Program Guidelines.

 

First Mortgage Loan Programs Today’s Indicative Rates*
Federal Financing Bank (FFB Mortgage) Risk-Sharing Program, Refinance/Moderate Rehabilitation 4.023%
Credit Advantage
Immediate Delivery
Two Year Forward Commitment
5.130%
5.680%
Affordable Advantage
Immediate Delivery
Two Year Forward Commitment
5.130%
5.680%
*Indicative rates are based on a 35-year loan amortization period and repayment term. Rate includes Mortgage Insurance Premium (MIP) (assumes 90/10 Risk Share and is subject to change based on the level of Risk Share selected by IHDA), servicing, and trustee/custodian fees. Final rates for a specific deal may vary from the above indicative rates.

 

The first step in applying for one of IHDA’s taxable loan products is to submit a Preliminary Project Assessment (PPA). The PPA addresses project concept, design, location and proposed tenant population. PPAs are either approved or denied by IHDA and are accepted on a rolling basis. Approval of a PPA does not guarantee an allocation of IHDA resources.

For more information on IHDA’s First Mortgage Loan Programs, contact Andy DeCoux, Director, Multifamily Financing at 312-836-5355 or adecoux@ihda.org.