5 Things You’ll Love About WHEDA Loans

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 home ownership opportunities through affordable mortgage programs and continues to play a vital role today.


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 they work:

1) Special federal income tax credit for 1st-time buyers

How does paying $15,000 less in federal income tax sound over the first 10 years of owning your home? 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 special Mortgage Credit Certificate (MCC) program instead of a traditional 30-year fixed rate loan. Your actual income tax savings will also 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.

Find out if you qualify for MCC tax credit:

  • 1st-time home buyers only (no buyer may have owned a home in the previous 3 years)
  • Maximum purchase price of $250,000
  • No condominiums
  • Tax benefits last only if property remains owner occupied
  • Income maximums apply
  • Income tax credit benefits are even higher for honorably discharged veterans

2) Put as little as 0% down with no monthly mortgage insurance

WHEDA normally requires a 3% down payment, but in special cases, you may be one of the few people in the United States who can qualify for 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.

There are three “flavors” of 30-year fixed rate WHEDA loans that offer down payments of less than 20%:

  • 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)

Your friendly Accunet loan consultant will lay out and explain all your choices side-by-side in an easy to understand comparison.

3) Repeat home buyers are welcome under WHEDA

WHEDA loans used to be limited to first-time home buyers only (folks who haven’t owned property in the last 3 years). 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) No pricing adjustments if your credit is less than perfect

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 private mortgage insurance

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!