WHEDA loan rules & requirements
What do I need for a WHEDA loan?
WHEDA (which stands for Wisconsin Housing and Economic Development Authority) requires home buyers to meet certain eligibility requirements before qualifying for a loan. The requirements and rules below apply to the 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.
1. General requirementsThe application process can be a little situational, but generally, all applicants must meet these requirements before continuing with the application process:
- Documentation of steady, reliable income (this can get tricky when applying for a loan with commission-based income)
- FICO credit score of 620+
- Enough income to cover bills, including your new mortgage payment
2. Location requirementsThis 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 — but it’s not required.
Call Accunet today to find out if you qualify for a WHEDA loan
3. Purchase price limits & income limitsWHEDA is designed to help low to moderate-income borrowers. To keep the program focused on these demographics, WHEDA has limits on how much the home can cost, and how much the homebuyer can make in order to qualify. Your total household income must be below WHEDA’s maximum income limits, yet high enough to support your monthly debts.
WHEDA purchase limits 2019
|First-time homebuyer||Regular WHEDA limit|
4. Homebuyer education requirementsWHEDA requires you to participate in homebuyer education before you can move into your new home.
- The course must be completed before closing
- Can be completed online
- Completion certificate must come from a WHEDA-approved educator
5. Residency requirementsFor approval, your new home must be your primary residence.
Final ConsiderationsWhile 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
Ready for the next step? Contact Accunet to get started on your application
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