5 things you’ll love about WHEDA loans

Due to recent events, WHEDA regulations and information are constantly changing.

For up-to-date information on WHEDA loans, call Accunet Mortgage directly at 262-781-1100.

Before the Wisconsin Housing and Economic Development Authority (WHEDA) was formed, it was particularly challenging for modest-income families and individuals to afford the housing they desired. WHEDA was originally developed to assist Wisconsin residents and provide unique homeownership opportunities through affordable mortgage programs and continues to play a vital role today.

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So, what is a WHEDA loan? WHEDA home loan programs are available only to home buyers purchasing an owner-occupied home in Wisconsin. Accunet Mortgage is one of the state’s leading originators of WHEDA loans. Here’s how it works:

1. First-time buyers get a federal tax credit

How does paying $15,000 less in federal income tax over the first 10 years of home ownership sound? By filing jointly, that’s how much federal income tax a married couple could save on a $237,500 30-year fixed rate WHEDA loan using WHEDA’s Mortgage Credit Certificate program instead of a traditional 30-year fixed rate loan.

Contact Accunet to find out if you qualify for the MCC.

Your actual income tax savings will depend on your loan amount and your taxable income. Of course, you should consult your own tax advisor for more assistance with your unique financial situation.
MCC tax credit requirements:

  • 1st-time home buyers only (someone who hasn’t owned a home in the last 3 years)
  • Maximum purchase price of $250,000
  • No condominiums
  • Property must be owner-occupied
  • Income maximums apply (check yours here)
  • Income tax credit benefits are even higher for honorably-discharged veterans

2. As little as 0% down with no PMI

WHEDA normally requires a 3% down payment, but in special cases, they can grant a 0% down payment loan. How? With the help of a unique WHEDA program called an Easy Close Second.
The Easy Close Second is a fixed-rate second mortgage that you pay back over 10 years. The interest rate on the Easy Close Second is the same as the Note Rate on your WHEDA first mortgage.
Types of WHEDA loans offering <20% down payments

  • 0% to 3% down with reduced-cost Private Mortgage Insurance (PMI)
  • 0% to 3% down with no monthly PMI
  • 3.5% down with FHA (government mortgage insurance)

Don’t stress over the numbers. Call Accunet today, and we’ll make the home buying process simple with easy-to-understand comparisons of your options.

3. Repeat home buyers welcome 

WHEDA loans used to be limited to first-time home buyers only. Now, people who are selling one home and buying another, or who have otherwise owned a home in the past 3 years may still qualify.
The new rule is that you cannot own any other real estate at the time of closing on the new WHEDA loan. But remember, to qualify for the additional special federal income tax credit described above, you still do need to be a 1st-time buyer.

4. Your credit score doesn’t affect pricing

With a conventional 30-year fixed rate loan, every 20 points on your FICO score can impact the rate you get on your mortgage. But this is not the case with a WHEDA 30-year fixed rate.
If you qualify for the loan based on WHEDA’s guidelines for credit scores, the rate and closing costs are the same as if you had perfect credit.

5. Reduced-cost PMI

Because WHEDA is a housing finance agency, the cost of private mortgage insurance is less than on regular 30-year fixed rate loans.

Ready to get pre-approved with a WHEDA loan? Get started today!

 

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