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  • Limited Products

  • Distressed Property Closing Cost Credit

    WHEDA has ANOTHER way to give your Borrowers more “buying power” with a LIMITED TIME offering of a Closing Cost Credit up to $1250, for the first 110 WHEDA Conventional Advantage loans meeting the requirements below.

    This limited time credit is a great tool to pair with the Advantage Conventional HomeStyle® Renovation enhancement

    Features and Benefits

    • Up to a $1,250 Closing Cost Credit for borrowers purchasing a “distressed property” using WHEDA Advantage Conventional
    • No repayment required. 
    • Eligible for use in conjunction with Easy Close  or Capital Access down payment assistance programs. 
    • WHEDA purchase price and credit requirements apply.

    Requirements

    1. Property being purchased must be a “Distressed Property”
      1. A foreclosure (or part of a deed-in-lieu of foreclosure), or a short sale
    2. Must Use WHEDA Advantage Conventional Program
      1. Not eligible on WHEDA FHA program
    3. Total Household Income must not exceed the Closing Cost Credit Limits
    4. Loan must be registered via WHEDA-Connect to reserve funds1
      1. Reserve funds via uploading a completed Reservation Request and required documentation under “doc type” Income Evaluation

    Determining Maximum Credit  

    • The maximum amount of Closing Cost Credit that Borrowers can receive is $1250.
    • To determine the amount a Borrower can receive use the formula below:
    Total
    (actual closing costs + prepaids)
    -Total
    (Interested Party Contributions, including seller concessions)
    =Maximum Closing Cost Credit

    Example:

    Total CC + Prepaids Total ALL Credits Maximum Closing Cost Credit
    $2500-$1250=$12502

    2Maximum credit may be less than $1250 based on actual figures


    Availability

    1Limited Availability - 110 Closing Cost Credits are available on a first-come, first-served basis

    Instructions on how to reserve funds for the Distressed Property Closing Cost Credit

     Forms and Exhibits

    Income Limits

    HomeStyle® Renovation is a registered trademark of Fannie Mae

  • Loan Products

  • Advantage Conventional Product Information

    WHEDA has one Conventional program called ADVANTAGE CONVENTIONAL.

    The Advantage Conventional program, while being multifaceted, primarily follows FannieMae® guidelines with the exception of Housing Finance Authority specific features. 

    Our “Eligibility Matrix” encompasses ALL aspects of the program specific to WHEDA. Any guideline that is not addressed on the Eligibility Matrix will follow FannieMae® guidelines and can be found in their Selling Guide.

    Features and Benefits(1)

    • Available statewide to all WHEDA Approved Lenders
    • Up to 97%LTV/105% CLTV available
    • 620 minimum credit score
    • All loans with an LTV exceeding 80% have two options:
      • Preferred (with MI)
      • Risk Share (No MI)
    • Eligible for use in conjunction with Easy Close  or Capital Access down payment assistance programs.

    Advantage Conventional Requirements(1)

    •  All loans have a Total Household Compliance Income limit based on
      • Loan Program
      • Borrower type
      • Property Location
      • Household Size
    • All loans have either a Purchase Price Limit or a Loan Limit
    • Home Buyer Education and Landlord Education is required on some programs

    Advantage Conventional Features(1)

    The Advantage Conventional Program offers different features, or nuances, to:

    1. Specific types of borrowers
      1. First Time Home Buyer
      2. Eligible Veterans - VALOR
    2. Properties located in federally designated target areas
    3. Home Buyers looking for a way to include the costs to renovate or repair a property in their mortgage
      1. HomeStyle® Renovation 

    (1)This is not meant to be inclusive of all the Advantage Conventional program guidelines, nor is it a guarantee that a Borrower meeting all the guidelines will be eligible for loan approval

    HomeStyle® Renovation is a registered trademark of Fannie Mae


    Advantage Conventional HomeStyle® Renovation

    WHEDA is excited to announce the expansion of our Advantage Conventional program to include HomeStyle® Renovation!  WHEDA’s latest way to help you assist MORE buyers!

    HomeStyle® Renovation

    • Allows a borrower to purchase a property, or refinance an existing WHEDA loan and
    • Roll allowable(1) costs INTO THE MORTGAGE TRANSACTION
    • Complete the repairs, renovations or rehabilitation up to 6 months after closing:

    Features and Benefits

    • All current WHEDA Advantage Conventional Eligibility parameters apply
    • Available statewide on ALL Advantage Conventional property types
    • Preferred (with MI) and Risk Share (No MI) options!
    • Eligible for use in conjunction with Easy Close  or Capital Access down payment assistance programs.
    • Single close financing with normal WHEDA post-closing purchase process based on delivery channel

    After closing and purchase, WHEDA will handle all aspects of renovation project in conjunction with Lender Title Company.

    HomeStyle® Renovation Specifics

    Maximum Amount of Improvements
    Transaction Type The cost of renovations must not exceed…
      Purchase transaction 75% of the lesser of:
    • The sum of the purchase price of the property plus renovation costs
    • The “subject to” appraised value of the property
    Refinance (WHEDA to WHEDA only) 75% of the “subject to” appraised value of the property
      Manufactured Home The lesser of:
    • $50,000
    • 50% of the “subject to” appraised value of the property

     

    What can be included in the mortgage?

    Renovation-related costs that may be considered part of the total renovation costs include, but are not limited to:

    • 10% Contingency Reserve
    • Property inspection fees
    • Costs and fees for title update
    • Independent consultant fees
    • Permit fees
    • If the borrower is unable to occupy the subject property at the time of closing, up to six months (PITI) may be included in the total renovation costs.
    • Sweat equity is not allowed.

     Eligible Improvements

    Allowable improvements include, but are not limited to:

    • Renovations to kitchen and bathrooms
    • Installing energy efficient furnaces and/or cooling systems
    • Windows, doors, siding
    • Roofs
    • Energy Star Appliances that are a part of a substantial change or upgrade to the room in which the appliance would otherwise be placed

    HomeStyle® Renovation Property Specifics

     Manufactured Housing

    • Improvements to kitchens or bathrooms
    • Installing energy efficient heating and cooling systems
    • New windows, doors, siding, or roofing

     Condominiums

    • Must be permissible under HOA by-laws, or
    • Must be limited to the interior of the unit

     HomeStyle® Renovation Document Specifics

    • Renovation Contract signed and dated by the borrower(s) and contractor(s)
    • Scope of Work must:
      • Fully describe the work to be completed
      • State the agreed-upon cost of the work
      • Identify any sub-contractors
      • Indicate when various stages of work will be complete, including a start date and completion date
      • Must be signed and dated by both the borrower(s) and the contractor(s)
    • Lender Loan Agreement signed and dated by the borrower(s) and the lender
    • Escrow Agreement signed and dated by the borrower(s) and the title company
    • Consumer Tips signed and dated by the borrower(s)

    Contractor Requirements

    The borrower can work with a contractor of their choice, subject to determination that the contractor is licensed by the State of Wisconsin.

    WHEDA-Connect

    The HomeStyle® Renovation product names in WHEDA-Connect are:

    • FTHB HFA HomeStyle® Preferred w/ MI   • FTHB HFA HomeStyle® Preferred Risk Sharing  
      • HFA HomeStyle® Preferred w/MI     • HFA HomeStyle® Preferred Risk Sharing  

    Resources

    New and Revised Forms:

    HomeStyle® Renovation, Desktop Originator, Desktop Underwriter, DO, and DU are registered trademarks of Fannie Mae

    Advantage Conventional First-Time Home Buyer (FTHB) Product Information

    The Advantage Conventional First-Time Home Buyer Program, or FTHB, offers a conventional, fixed-rate mortgage with a preferred interest rate, priced below our standard Conventional Advantage.

    FTHB interest rates can be viewed on the Daily Pricing Grid. The preferred interest rates will be reflected in the grid with the prefix of FTHB/VALOR.

    Eligibility Requirements

    First-time home buyers must meet the following FTHB Advantage eligibility requirements:

    • Borrowers must qualify for a WHEDA Advantage Conventional loan
    • Be a FTHB, defined as an individual who has not owned a principal place of residence or had the benefit of home ownership in the last three years* 
      *This requirement is waived if a borrower is a qualified military veteran (see VALOR loan guidelines), as defined in the Conventional Underwriting Guide or is purchasing a home in a federally designated Target Area
    • FTHB/VALOR Income and Purchase Price Limits apply

    Exclusions 

    • Borrowers who qualify for the FTHB program are not eligible to receive both the benefit of the FTHB preferred interest rate and the Mortgage Credit Certificate (MCC) program.
    • A FTHB preferred interest rate is not available for a WHEDA FHA Advantage loan

    Advantage Conventional Veterans Affordable Loan Opportunity Rate (VALOR) Product Information

    The Advantage Conventional Veterans Affordable Loan Opportunity Rate, or VALOR, offers qualified military veterans a conventional, fixed-rate mortgage with a preferred interest rate, priced below our standard Conventional Advantage.

    VALOR interest rates can be viewed on the Daily Pricing Grid. The preferred interest rates will be reflected in the grid with the prefix of FTHB/VALOR.

    For more information, please see the VALOR flyer in the Promotional Materials section of the Lender Toolkit.

    Eligibility Requirements

    Eligible Veterans must meet the following VALOR eligibility requirements:

    • Borrowers must qualify for a WHEDA Advantage Conventional loan
    • Be a Qualified Veteran, defined as a military veteran with an honorable discharge or release
      • Form DD-214 indicating honorable discharge or release in the Charter of Service
      • NOTE: VA Certificate of Eligibility does not replace form DD-214
    • First-time home buyer requirement is waived
    • FTHB/VALOR Income and Purchase Price Limits apply

    Exclusions

    • Borrowers who qualify for the VALOR program are not eligible to receive both the benefit of the VALOR preferred interest rate and the Mortgage Credit Certificate (MCC) program
    • A VALOR preferred interest rate is not available for a WHEDA FHA Advantage loan

    FHA Product Information

    Capital Access Advantage DPA Product Information

    Use the Capital Access Advantage to help qualify more borrowers for an affordable WHEDA mortgage. A Capital Access second mortgage is a low-cost, deferred down payment assistance loan for home buyers in Wisconsin.

    WHEDA is excited to waive the Capital Access Down Payment Assistance “high housing needs” restriction for a LIMITED time!

    FEATURES

    • Minimum loan amount $3,050
    • Maximum loan is the greater of 3% (3.5% if FHA) of the purchase prices or $3,050
    • 0.00% APR with no monthly payments
    • Can be used with both WHEDA Conventional Advantage and FHA Advantage loans
    • No pre-payment penalty

    **Limited Waiver: No property restrictions on a minimum of 425 loans.  Available on a first come, first serve basis.**
    Take advantage of this benefit today!

    Register Your 1st Mortgage and Capital Access DPA

    Documents

    Program Requirements

    Capital Access Advantage home buyers must meet the following program requirements:

    • The only cost is a recording fee of $30
    • Must pair the Capital Access Advantage with a WHEDA first mortgage loan up to 105% 
    • Eligible properties must be located in a high housing need market area - Register today to waive this restriction!
    • Income and purchase price limits apply

    How to Register or Rate Lock a Capital Access Advantage DPA loan in WHEDA-Connect

     

    Easy Close DPA Product Information

    Home Improvement Advantage Product Information

  • Pilot Loan Products

  • Milwaukee Advantage

    The Milwaukee Advantage is a first and second mortgage loan product. It can be used to acquire and rehabilitate a property or for new construction. This product is limited to specific neighborhoods in Milwaukee. Home buyer education is required as well as consultation with one of the partner agencies to scope rehab or construction efforts.

    To get started, please work with a Milwaukee Advantage Partner

    Features:

    • Up to 100% financing is available on the first mortgage
    • 150% maximum financing on the second mortgage
    • No down payment requirement
    • 0% interest with no monthly payments for 12 months while a property is under construction or being rehabbed