Why WHEDA?
WHEDA has been a great resource for first time and non-first time home buyers alike. For many reasons this loan has become popular, probably due to it’s low rates and ability to avoid the down payment. Some people prefer it because there is a no mortgage insurance option even with zero down payment. Whatever the reason is, here are a few other reasons to appreciate this Wisconsin loan.
Special Tax Credits For First Time Buyers
How does paying $15,000 less in federal income tax sound over the first 10 years of owning your home? By filing jointly, that’s how much federal income tax a married couple could save on a $237,500 30-year fixed rate WHEDA loan using WHEDA’s special Mortgage Credit Certificate (MCC) program instead of a traditional 30-year fixed rate loan. Your actual income tax savings will also depend on your loan amount and your taxable income. Of course, you should consult your own tax advisor for more assistance with your unique financial situation.
Find out more about the MCC credit here
- First time buyers only (no buyer may have owned a home in the previous 3 years)
- Maximum purchase price of $250,000
- No condominiums
- Tax benefits last only if property remains owner occupied
- Income maximums apply
Repeat Buyers Are Eligible
WHEDA loans used to be limited to first-time home buyers only (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 described above, you still do need to be a 1st-time buyer.
Limited Pricing Adjustments (Better Rate)
With a conventional 30-year fixed rate loan, every 20 points on your FICO score can impact the rate you get on your mortgage. But this is not the case with a WHEDA 30-year fixed rate. If you qualify for the loan based on WHEDA’s guidelines for credit scores, the rate and closing costs are the same as if you had perfect credit. You can find out more about Pricing adjustments here.
How Do I Qualify For a WHEDA Loan?
You can always contact me with questions or Apply here. The following criteria is important when considering a WHEDA loan.
Home Must Be Your Primary Residence
Because WHEDA isn’t designed for income producing properties. If you intend to live in the home and want a low rate / payment. WHEDA may be right for you
Home Must Be Located In Wisconsin
WHEDA stands for “WISCONSIN Homeowner Economic Development Authority. The home you are purchasing must be located in Wisconsin.
Income Limits Apply
You cannot exceed a certain income threshold in order to qualify for the WHEDA benefit, you can find out more On our WHEDA page.
As always I appreciate you reading and I hope this has been useful information. Maybe it will guide you in the right direction to buying a home, considering we are in the top tier of WHEDA lenders in the state; we have some useful experience and special knowledge pertaining to the use of these loans. Feel free to contact me directly at the information below.
Thank you
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Justin Scott
Loan Officer
NMLS 878581
- C) 920-530-4484
- O) 920-490-8823
- F) 920-490-8967
Executive Mortgage
NMLS 271650
909 . E Walnut Street
Green Bay WI 54301