WHEDA Loans – A Unique Opportunity for 1st Time Home Buyers in Wisconsin
November 15, 2017
History of Why WHEDA was Created
The Wisconsin State Legislature created the Wisconsin Housing and Economic Development Authority (WHEDA) in 1972 to meet a vital need for affordable housing for low and moderate income residents. Further legislation in 1983 broadened WHEDA’s mission to include both small business & farming financing options.
Who they are & What they do!
WHEDA is an independent authority, they are not a state agency. WHEDA is a lender, they are not a granting Agency. WHEDA issues bonds and notes for sale to finance housing development for homebuyers at attractive rates and terms.
Offers low cost, fixed interest rate financing to low-to-moderate income first-time homebuyers.
HOME Loan for Veterans
Offers low cost, fixed interest rate financing to military veterans purchasing a home.
HOME Plus Loan
Provides financing of up to $10,000 for down payment and closing costs and, a line of credit for future home repairs.
Partnership for Homeownership
A partnership between WHEDA and the US Department of Agriculture – Rural Development that provides affordable home financing for Wisconsin’s rural residents.
A unique homeownership opportunity in the City of Milwaukee.
There are income limit and purchase price limit eligibility requirements for the WHEDA Loan Programs. Furthermore it is easier to qualify for a HOME Loan if the property resides in a designated Target Area.
WHEDA Grant Opportunity
Funding WHEDA grants was made possible through a grant WHEDA received from the Federal Home Loan Bank of Chicago (FHLBC). Grants are available on a first-come, first-served basis and are designated to be used for down payment and closing cost assistance to first-time home-buyers in specific urban and rural markets. Down payment assistance is in the form of a 0% interest, no monthly payment, 5-year forgivable grant of $5,000 per household.
Am I eligible for a grant?
- Available to first-time homebuyers that meet specific income requirements and use a WHEDA HOME Loan
- All borrowers must participate in six to eight hours of face-to-face homebuyer education
- Borrowers must invest a minimum of $500 into the loan transaction
- Borrowers cannot receive cash back at the time of loan closing
- These grant assistance dollars cannot be used with other FHLBC funds, such as Down Payment Plus
- Disbursement of the grant assistance funds will come from a designated FHLBC grant administrator
- WHEDA standard HOME Loan underwriting guidelines apply
For more info on WHEDA’s 1st-time Home-buyer programs and for current WHEDA rates – Wisconsin residents can contact Shannon.