What is a Wheda Loan?

WHEDA (Wisconsin Housing and Economic Development Authority), offers special loan programs to home buyers looking to purchase an owner-occupied home in Wisconsin. The programs offered by WHEDA are commonly referred to as “WHEDA Loans”.

WHEDA loans are special loan programs that can be a great fit for home buyers who meet WHEDA’s eligibility requirements. WHEDA offers 3 types of loans, two for first time home buyers and one for home buyers who have owned real estate in the past.

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Three Types of Wheda Loans

  1. First time home buyer: WHEDA Advantage

This program is only available to home buyers who have not owned real estate in the past three years. You also have to meet WHEDA’s most restrictive income restrictions in addition to the normal eligibility requirements. However, if you meet these requirements, you’ll have access to WHEDA’s lowest available rate.

  1. First time home buyer: WHEDA Advantage with Mortgage Credit Certificate (MCC)

This program offers an add-on to the WHEDA Advantage called the Mortgage Credit Certificate (MCC). The MCC is difficult to explain and is easiest to allow one of our licensed loan consultants to explain it over the phone. Nonetheless, the MCC is worth looking at because it offers a credit on your Federal Income Tax. This program can make sense for some home buyers and can be especially beneficial for home buyers who itemize deductions on their taxes.

There are two catches with the WHEDA Advantage MCC:

  1. You’ll receive the higher of WHEDA’s two rates
  2. You have to meet WHEDA’s most restrictive income restrictions

That said, it’s important to weigh how much higher your monthly payment will be due to the higher rate vs. the savings on your federal income taxes. Our licensed loan consultants are happy to assist with these calculations and can provide detailed breakdowns of savings.

  1. Non-first time home buyer: WHEDA Advantage

The non-first time home buyer is available to anyone who does not currently own real estate. In other words, it’s possible to sell your current home in the morning and close on a new home using this program later that afternoon.

Why choose a WHEDA loan?

  1. WHEDA Loans are amortized over 30 years for the lowest monthly payment
  2. WHEDA’s rates can often times be lower than conventional loan programs
  3. Down payment Options as low as 0% down without mortgage insurance
  4. If monthly mortgage insurance is required, WHEDA loans require less coverage. That’s a technical term, but it means lower total mortgage payment for the home buyer

Essentially, the WHEDA Advantage has the potential to offer lower monthly payments and/or lower down payments compared to conventional loan programs.

Is a WHEDA loan right for me?

A WHEDA loan may be right for you if you meet WHEDA’s eligibility requirements. Every home buyer situation is unique, and it’s often beneficial to explore all financing options before making a final decision. At Accunet Mortgage, our team of licensed loan consultants will provide you with detailed side by side comparisons of all your financing options. That way you can make an informed decision on whether or not a WHEDA loan makes sense for your situation. We’ll also take the time to ensure you’re accurately pre-approved and that any surprises are discovered up front.