WHEDA (Wisconsin Housing and Economic Development Authority) 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.
Wheda offers a number of home loan programs:
- Wheda Advantage
- Wheda First Time Home Buyer Advantage
- Wheda Tax Advantage (MCC)
- No mortgage Insurance Program
Each one of these programs come with its own unique selling point. However, these loan programs share common features unique to WHEDA, we’ll go over those at the end.
The Wheda Advantage program comes with all the benefits and things you’ll love about a WHEDA loan with a normal interest rate. See Wheda Loan Rates the general Wheda program that boasts lower than normal PMI insurance.
Wheda First Time Home Buyer Advantage
The First time home buyer advantage will have all the benefits and things you’ll love about a WHEDA loan, PLUS a LOWER interest rate than the Wheda Advantage program. See Wheda Loan Rates. The WHEDA First Time Home Buyer Advantage program is only for first time home buyers (people who have not owned a house/residence in the last 3 years).
Wheda Tax Advantage (MCC)
The Wheda Tax Advantage uses the same rate as the Wheda Advantage program, but also can help lower your federal tax burden by up-to $2,000 per year (final amount depends on how much interest you pay into the mortgage). To utilize the tax credit, you’ll have to use itemized deductions rather than the standard deduction. Also, if you sell your home within the first 9 years of the loan, you may be required to pay the IRS a recapture tax. HOWEVER, Wheda will pay your recapture tax and they say there is nothing to worry about. One slight caveat, if your recapture tax is $4,000, you will need to pay that out-of-pocket and Wheda will reimburse you after you file the appropriate paperwork with Wheda. All of this information will be documented in your loan paperwork.
No Mortgage Insurance Program
Each of the programs listed above have two choices in their rate. You can either choose:
- a higher interest rate and no mortgage insurance
- or to pay monthly mortgage insurance with a lower interest rate.
Again the various interest rates are documented on our Wheda Rates page. It is important to do a cost analysis of both options to see which one suits you best. One of our friendly loan consultants will be able to perform a side-by-side cost analysis for you.
4 other things you’ll love about any WHEDA loan program
1) Put as little as 0% Down with no mortgage insurance
WHEDA normally requires a 3% down payment, but utilizing a special program, it’s possible to qualify for a 0% down payment loan! How is this possible? With the help of a WHEDA’s special program called an Easy Close Second. As of 9/24/16, the APR on the WHEDA First Time Home Buyer 30-year fixed rate first mortgage with no PMI is 3.78% (3% down).
Accunet offers five “flavors” of 30-year fixed rate WHEDA loans that offer down payments of less than 20%:
- First-time buyers – 0% to 3% down with reduced-cost private mortgage insurance (PMI)
- First-time buyers – 0% to 3% down with no monthly PMI
- Repeat buyers – 0% to 3% down with reduced-cost private mortgage insurance (PMI)
- Repeat buyers – 0% to 3% down with no monthly PMI
- Refinances of current WHEDA borrowers
- Look up WHEDA income limits for regular and first-time home buyers
Your friendly Accunet Loan Consultant will lay out and explain all your choices side-by-side in an easy to understand comparison. Get Started
2) Repeat home buyers now welcome under WHEDA
WHEDA loans used to be limited to first-time home buyers (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 (MCC described above), you still do need to be a 1st-time buyer. Get Started
3) No pricing adjustments if your credit is less than perfect
With a regular 30-year fixed rate loan, every 20 points on your FICO score can impact the rate you get on your mortgage. Not so with a WHEDA 30-year fixed-rate. As long as 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. Get Started
4) 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 to buy with a WHEDA loan? Get Started