WHEDA Fannie Mae Advantage
Most homes are expensive. There is just no way to sugarcoat it. Finding affordable transportation and good clothes at a decent price can be a simple task, but finding a LIVABLE home that is also CHEAP can be almost impossible. However, the people of Wisconsin now have an opportunity to buy a home, at an affordable rate, thanks to the Fannie Mae Advantage plan offered through WHEDA.
There are multiple lenders throughout the state that can go over your specific details to ensure that you meet the requirements for the Fannie Mae Advantage loan. Basically, the requirements are this:
- You must be buying your first home. (if you have owned a home previously, you may qualify if you buy a home within certain designated areas)
- You must have a strong credit history.
- Your income must be high enough to afford the mortgage as well as your current obligations.
- You must intend to live in the home as your main residence
- Before receiving the loan you must complete a home buyer course offered through a counselor certified by WHEDA
If you qualify for the loan, and you fall within the income limits as well as the purchase price limits, then the features of the Fannie Mae Advantage loan are outstanding.
- Very low down payment – It is possible to buy a home with only a 3% down payment. There are grants and down payment assistance programs available to help with some of the down payment costs.
- Great rates – The rates are really low and they are fixed for a full 30 years. This means the principal and interest payment on the loan will never change.
- Protection against loss of job – In the tough economy of the past few years, many people are worried that they may not be able to keep their job. Protection is available to help make mortgage payments in the event that you lose your job.
- Help with needed repairs – It is even possible to make necessary repairs to the home before purchasing. As much as $10,000 can be added to your mortgage in order to cover necessary items to improve the property’s safety and function.
Income and Purchase Price
There are also guidelines for the borrower’s income as well as the price of the home. A full list of the limits can be found here. There are some important facts to understand. The income limits are based on the number of ADULTS living in the house, whether they are borrowers on the loan or not. The purchase limits are the maximum amount for a loan that will be considered for the Fannie Mae Advantage loan. This means you are welcome to search for a home that is cheaper than the maximum. Furthermore, there are several counties and cities where you do NOT have to be a first time buyer in order to qualify for the Fannie Mae Advantage loan.
If you have a strong credit history and you are wondering when you will be able to afford a home, the time could be perfect for you to use the Fannie Mae Advantage from WHEDA and move into that first home!
In accordance with the recent changes made to Fannie Mae and Freddie Mac guidelines to conform to the Qualified Mortgage regulations, there are also some changes being made to WHEDA Fannie Mae Advantage loans. Here are the major changes.
* The loan term for any mortgage cannot be longer than 30 years.
* All mortgages will have to be a loan that amortizes over the life of the mortgage; no interest-only product
* The fees and points associated with the WHEDA loan cannot be higher than 5% of the loan value.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. Google+