What is WHEDA and how can it Help ME?

The American Dream usually consists of a few major items for the majority of people; a satisfactory, well-paying job, dependable transportation and an affordable home to call their own.  Lots of initiatives have been offered over the years to help people in middle to low income brackets afford a home purchase.  The Wisconsin Housing and Economic Development Authority (WHEDA) has filled that need for over 40 years. WHEDA

Early Beginnings

In 1972 WHEDA was organized by the state legislature of Wisconsin.  However, the group does not operate as a state agency.  Instead, WHEDA is independent, giving it more flexibility in its dealings.

Mission

WHEDA exists to offer affordable financing to people in moderate to low income brackets.  The loans are fixed rate mortgages and aimed at helping people obtain their first home.

WHEDA works in conjunction with a host of different groups such as developers, lenders, nonprofits and local governments in order to ensure that there are affordable homes for deserving individuals.

The agency also offers financing to developers that plan to offer rental properties for low or moderate income individuals and families.

Small business loans are also offered to aid agriculture initiatives and economic improvement.

Various Loans

WHEDA offers loans for people to buy homes.  The loans come in three different varieties to accommodate purchases and even limited home improvements.

Besides these loans, other programs exist aimed at multifamily housing. Developers can take advantage of these loans to build or renovate properties such as a duplex or 4-plex and make them suitable for a number of families.  WHEDA has several programs for developers to make it easier for the builder to find the right financing for their needs.

Like the FHA and VA loans, WHEDA offers its products through various lenders across Wisconsin.  This makes it easier for borrowers to get the loan they need and allows WHEDA to focus on managing their products rather than operating a mortgage operation.

No Taxes

WHEDA does not use any revenue from taxes to fund its programs.  Revenue bonds are sold and used to finance the loans.  This allows the program to self-fund its offerings without relying on the taxpayers of Wisconsin.

More than Just Loans

While the principal focus of WHEDA is to offer affordable loans for moderate income and low income individuals, the agency is involved with other projects as well.  In 1983 a foundation was established to offer annual grants.  The grants are designed to help housing situations among special needs such as victims of domestic abuse, runaways, homeless, people with disabilities, and people in need of protective services.

Based on their successful track record and commitment to the people of Wisconsin, WHEDA is dedicated to helping people fulfill their own American Dream.  If you feel you fall under their guidelines, talk with a mortgage lender about the WHEDA programs to see if one is right for you.

An update in regards to the new Mortgage Guidelines: Based on the new Qualified Mortgage standards that went in to place at the beginning of 2014, WHEDA loans are still being used to offer financing to qualified Wisconsin residents. The officials in charge of WHEDA have consulted with their advisers and studied the Qualified Mortgage regulations and even held discussion with federal mortgage regulators. Based on the language of the law it has been determined that WHEDA mortgages do not fall under the new restrictions for Qualified Mortgages. The guidelines for WHEDA acts as a type of “safe harbor” for the borrowers and lenders and thus there is no need to worry about the new restrictions for mortgages.

Looking to get qualified for a WHEDA loan? Speak with our preferred lender below or click the image to Apply Today!

Zach AdamanyMortgage-Apply-TodayZach Adamany
Inland Bank and Trust
Area Sales Manager
NMLS #: 283619

608-695-7740

 

Also, feel free to visit our Rock Realty home listings websites below to help with your home search! You can search through all available MLS listings in your area.

Janesville Area: http://www.JanesvilleRealtor.com

Madison Area: http://www.MadisonWIForSale.com

This communication is provided to you for informational purposes only and should not be relied upon by you. Rock Realty is not a mortgage lender and so you should contact a WHEDA lender directly to learn more about its mortgage products and your eligibility for such products.

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