Wisconsin HEDA Provides More Down Payment Assistance

The Wisconsin Housing and Economic Development Authority (WHEDA) has made upgrades to its WHEDA Advantage Mortgage Loan program that will be of great benefit to both borrowers and lenders.

Effective immediately, borrowers will be able to use the Easy Close Advantage Loan for their entire down payment when using a WHEDA Advantage mortgage. Under the WHEDA Easy Close Advantage, borrowers receive a low-cost, fixed interest rate for 10 years and immediate access to loan funds at the time of closing to cover their down payment and closing costs.

The Easy Close Advantage Loan can be used with the WHEDA Fannie Mae Advantage or the WHEDA FHA Advantage mortgage programs.  For the Fannie Mae Advantage, the maximum down payment and closing cost loan amount is the greater of $3,000 or 3% of the home purchase price.  For the FHA Advantage, the maximum down payment and closing cost loan amount is the greater of $3,500 or 3.5% of the home purchase price. The minimum Easy Close Advantage loan amount is $1,000.

“I’m delighted WHEDA can provide enhanced down payment opportunities for first-time home buyers,” said WHEDA Executive Director Wyman Winston. “These changes increase the access for borrowers to achieve the dream of homeownership, a mission WHEDA has been successful for almost 40 years.”

WHEDA is also announcing that effective immediately, WHEDA will underwrite and issue a credit decision for full loan application packages subject to receiving the appraisal and/or the mortgage insurance commitment certificate.

“Credit approvals can now be obtained before appraisals are submitted in this new streamlined process,” said Geoff Cooper, WHEDA’s Director of Single-Family Homeownership. “Appraisals can also be submitted electronically to WHEDA. This is tremendous news for lenders who will now be able to receive credit decisions from WHEDA faster.”

 

WHEDA is a public body corporate and politic created in 1972 by the Wisconsin Legislature that provides low‐cost financing for housing and small business development in Wisconsin. WHEDA does not rely on state tax revenue.  Instead the Authority raises capital through proceeds from the sale of revenue bonds and other programs.  For more information, visit www.wheda.com or call 1-800-334-6873.