WHEDA Loan Requirements, Eligibility, Income Limits

WHEDA requires home buyers to meet certain eligibility requirements above and beyond normal underwriting guidelines and rules. The requirements and rules below apply to WHEDA Advantage program which WHEDA offers to both first-time home buyers and move-up buyers looking to purchase an owner-occupied home in Wisconsin.

Rule #1: The home being purchased must be located in Wisconsin

This is fairly obvious, but worth mentioning. The address of your new home must be within Wisconsin’s geographical limits. WHEDA would also like your new home to be within 50 miles of your work address.

Rule #2: WHEDA 2018 Purchase Price and Income Limits

Yes, WHEDA has income limits for eligibility because it’s designed to help low and moderate income borrowers. Your Total Household Income must be below WHEDA’s maximum income limits, yet high enough to support your monthly debts. WHEDA has two different income limits depending if you are a first-time home buyer or not. If you are a first-time home buyer and want the special lower first-time buyer WHEDA rate, the income limits are lower than for WHEDA’s “Regular” Conventional program.  A First-Time Home Buyer is someone who has not owned a property in the last three years. All buyers must be first-time buyers to get the special lower rates.

Income and Purchase Price Limits 2018

  • Single-family Purchase Price Maximum
    • $271,164 for First-Time Home Buyer special pricing
    • $453,100 for “Regular” WHEDA Conventional
  • 2-unit Purchase Price Maximum
    • $347,178 for First-Time Home Buyer special pricing
    • $453,100 for “Regular” WHEDA Conventional
  • Income limits for lower First-Time Home Buyer rates
    • 1-2 Member Household Income Limit SE Wisconsin $77,300
    • 3+ Member Household Income Limit SE Wisconsin $88,895
  • Income limits for “Regular” WHEDA Conventional rates
    • 1-2 Member Household Income Limit SE Wisconsin $88,895
    • 3+ Member Household Income Limit SE Wisconsin $104,355
  • Income limits vary by county  Income limit lookup

But there is more to the income story. The combined gross annual income of all adults intending to occupy the property cannot exceed the WHEDA’s Income limit. It’s important to note that this is the total income of the occupants of the house and not just applicants on the loan. Every occupants’s income will be counted in the grand total of income. For example,  if someone aged 18+ lives with you like a son or grand parent but isn’t applying for the loan, their income will still be counted in the grand income total. This grand total will be compared against WHEDA’s maximum income limits to determine if your income qualifies. This type of income calculation is known as Compliance Income.

On the other side of the coin, your Qualifying Income must be high enough to support your monthly debts. Qualifying income has many rules to determine what’s counted and it’s often easiest to enlist one of Accunet’s licensed loan consultant’s help you calculate your qualifying income compared against your debts. Just know that your income cannot be too high, but also not too low.

Rule #3: Home Buyer Education and Counseling prior to Closing

WHEDA requires home buyer education to be completed prior to closing on your new home. Home buyer education can be completed online and we will provide you with all the information for that when appropriate.

Home buyer education will need to be completed after your interest rate is locked with WHEDA, but prior to closing. At the appropriate time, Accunet Mortgage will provide you with resources to obtain home buyer education. Since WHEDA only accepts completion certificates from WHEDA approved home buyer educators it’s important to get educated from approved sources.

Rule #4: Home must become your primary residence

You must move into your new home and occupy it as your primary residence.

Final Considerations

While these rules are specific to qualifying for the WHEDA Advantage program, it’s important to note that all other underwriting guidelines still apply. To help you get a better understanding of your situation, it’s important to obtain a pre-approval letter prior to writing an offer on a home. Accunet Mortgage is here to help you explore all your financing options while working to uncover any pitfalls that may occur down the road.