WHEDA will allow a Lender, other than the originating Lender, to assume an existing Guarantee Loan.
Please contact a WHEDA Commercial Underwriter if you are interested in assuming an existing guarantee loan.
After contacting WHEDA, the following steps must be completed:
1) A hold harmless agreement must be executed between the existing and proposed Lenders. This agreement must absolve the current Lender of all liabilities related to the assigned loan.
2) The existing Promissory Note must be assigned in its entirety to the new Lender.
3) All collateral documents related to the loan must be assigned to the new Lender.
After steps 1-3 are completed, forward all documents to WHEDA. The original Loan Authorization will be amended by WHEDA and a copy of the amendment will be forwarded to the new Lender.
