Wisconsin Neighborhood Advantage
The Wisconsin Neighborhood Advantage loan is available in select Wisconsin areas for the purchase of foreclosed and vacant homes. The loan can be used to purchase a foreclosed and vacant single family home as well as pay for limited home repairs. Click here for a quick overview of the Wisconsin Neighborhood Advantage home buying process.
This loan is available for properties in the following counties:
Brown
|
Kenosha
|
Milwaukee
|
Racine
|
Rock
|
Features and Benefits
How to Use
Participation in Wisconsin Neighborhood Advantage requires a separate loan origination agreement, even if you are already a participating WHEDA lender. If you are a bank, credit union, savings bank, savings and loan association or mortgage bank follow these steps to be an originating lender for this loan product:
Once you are authorized as a participating Neighborhood Advantage lender, here is the process to submit a loan:
- Submit a Neighborhood Advantage preapproval to WHEDA – we will order the credit report for you
- After preapproval a Housing Quality Standards (HQS) property inspection or Code Compliance Inspection must be obtained
- Mail the complete application package to WHEDA
- The rate will be locked when the complete application package is received.
- After approval set the closing date with the borrower within 30 days of interest rate lock
- Close the loan
General Eligibility Guidelines
- The purchase price cannot exceed 99% of the “as is” appraised value
- Maximum of 25% of the "subject to completion" appraised value in property repairs
- Household does not have to be a first-time home buyer
- Borrower must attend eight hours of face-to-face home buyer education through an approved HUD counseling agency
- Property must be owner occupied
- Purchase price and income limits apply
- Combined loan-to-value may not exceed 105% of the "subject to" appraised value. For an online, interactive CLTV calculator for Wisconsin Neighborhood Advantage, click here.
Access to Printed Resources
The combined income of all occupants of the property and the purchase price cannot exceed the limit for the county in which the property is located.
Compliance Income
Compliance Income is the anticipated income of all persons who will occupy the property. Click here to review Affordable Housing Program guidelines for calculating compliance income.
Wisconsin Neighborhood Advantage is not funded by WHEDA Tax Exempt Mortgage Revenue Bonds. It is a limited offering made possible by funding from the Wisconsin Department of Commerce and the Neighborhood Housing Services of America. Loans are available on a first come, first served basis.
Frequently Asked Questions
These FAQs provide answers to commonly asked questions about the Wisconsin Neighborhood Advantage loan.