WHEDA home loans: Get a mortgage with no down payment

Hi Ayling,

Welcome to Mortgagefit forum.

Wisconsin Housing and Economic Development Authority provides 30 yr. fixed interest rate mortgage with no down payment requirement.

To be eligible for wheda home loan you need to be a first time home buyer i.e., you must not have owned a house as your principal residence in the last 3 years. Your credit score needs to be 680 or more & your recent tax returns will be checked to determine if you would be eligible for the loan.

In addition your liquid assets reserve should be at least $7000 and a debt to income ratio up to 45% would be acceptable for the loan. You will also be required to undergo the home buyer education program.

Colin

I would add that as a borrower you will be required to pay federal recapture tax if the house financed through wheda is sold within 9 years of its purchase. But if your income is below federal median income limit then even if you sell within 9 years, no recapture tax would have to be paid.

Miller

How do you find out if you have to pay or not?

If you meet those criteria, especially in regards to liquidity - wouldn't you be able to simply put down a deposit most of the time? Who is theis scheme designed to help?

Hey Becky,

Your question is not clear to me. Can you give some details? It will help me answer your query.

i remember learning either late last year or early this year that WHEDA had suspended its first time homebuyer program. so that's out.

the current neighborhood advantage program is specific to certain urban counties (Brown, Kenosha, Milwaukee, Racine, Rock), and is available for a limited time only; first come, first serve.

CAN A WHEDA LOAN BE REFINANCED AT A LOWER RATE? I LIVE IN THE MILWAUKEE AREA?? THANKS, STEVE

steven, i would have to think that there'd be no reason for a lender to deny you the opportunity to refinance a wheda loan. as long as you've got sufficient equity to do what you desire to do, sufficient income to pay the debt, sufficient credit to qualify, etc. then any lender ought to be able to assist you.

but of course i am not in wisconsin, so i don't know if the badger state has its peculiarities in that vein.

how can i find out if i'm approved for a Wheda loan

Hi Loretta!

Welcome to forums!

Your lender will let you know whether or not you have been approved for a WHEDA loan.

Feel free to ask if you've further queries.

Sussane

What are some of the key areas that a home is not qualified because of a flaw that the WHEDA inspector indicated. ie) Peeling paint, bad shingle, type of well system, septic sysytem or wrong color I have hear horror stories, any help will be appreciated, my lender say ask a inspector; who i can not get a hold of.

I find it utterly ridiculous that a lender, presumably involved in originating WHEDA loans, would direct you to an inspector to determine what sort of property issues might prevent you from obtaining a loan through them. Any self-respecting lender would have that information within its own data.

Can you apply for a loan modification when you have a WHEDA loan?

Hi Ann!

Welcome to forums!

You can apply for a loan modification. You should contact your lender and check out what you need to do in order to get a loan modification.

Feel free to ask if you've further queries.

Sussane

Does wheda have any programs to help a homeowner that's behind in their morgage?