Home loan programs from the Wisconsin Housing and Economic Development Authority (WHEDA) 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.
Types of WHEDA 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 advantages.
Learn more about WHEDA, and how you can qualify.
The 4 benefits of using WHEDA programs
Every WHEDA program is a little different — but they share some commonalities. No matter which program you choose, you’ll enjoy these benefits:
1) You can put as little as 0% down with no mortgage insurance
WHEDA normally requires a 3% down payment, but with the help of a WHEDA program called Easy Close Second, it’s possible to qualify for a 0% down payment loan!
- 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
To qualify for certain WHEDA programs, you must beneath the listed income limit. Your Accunet loan consultant will lay out and explain all your choices side-by-side in an easy to understand comparison.
Start the home-buying process today with Accunet’s $2,000 mortgage guarantee!
2) Repeat home buyers are 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 (like the MCC), you still do need to be a 1st-time buyer.
3) There are no pricing adjustments, even 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 credit score requirements, the rate and closing costs are the same as if you had perfect credit.
4) Private mortgage insurance is more affordable with WHEDA
Because WHEDA is a Housing Finance Agency, the cost of private mortgage insurance is less than on regular 30-year fixed rate loans.
WHEDA Advantage Program
The WHEDA Advantage program comes with all the benefits and things you’ll love about a WHEDA loan with a normal interest rate. This is the general Wheda program that boasts lower-than-normal PMI insurance.
Check WHEDA loan rates to see for a side-by-side comparison.
WHEDA First-Time Home Buyer Advantage Program
The First Time Home Buyer Advantage will have all the benefits of the WHEDA Advantage loan, PLUS a LOWER interest rate.
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) Program
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. 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:
- no mortgage insurance and a higher interest rate
or - paying monthly mortgage insurance and a lower interest rate
The no mortgage insurance program lest you forgo monthly payments in favor of a higher interest rate. 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.
Contact Accunet to figure out which WHEDA program is right for you!
