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:

Example:

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

• Distressed Properties Closing Cost Credit Instructions for Lenders
• Distressed Properties Closing Cost Credit Reservation Request
• Lender Update 2018-15 Distressed Properties Closing Cost Credit

Income Limits

• Distressed Properties Closing Cost Credit Income Limits

HomeStyle^® Renovation is a registered trademark of Fannie Mae

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

•  Eligibility Matrix (Updated 10/2/18)
• Overlay Grids (Deleted – see Lender Update 2018-2)
• Underwriting Guide (Updated 11/9/18)
• Forms and Exhibits
• Income and Loan Limits
• TRID Frequently Asked Questions

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 LTV/CLTV/HCLTV are per the WHEDA Advantage Conventional Eligibility Matrix
• LTV based on the lesser of 
  • purchase price plus renovation costs
  • As-Completed value of the home.
• Lenders must use WHEDA’s s Form 41 HomeStyle® Renovation Maximum Mortgage Worksheet.
• Maximum amount of improvements allowed is based off of
  • Transaction type
  • Property type

For clarification, please see the chart below:

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 WHEDA Required Documents

• HomeStyle Renovation Contract Agreement (Form 38) - signed and dated by the borrower(s) and contractor(s)
• HomeStyle Renovation Loan Agreement (Form 39) signed and dated by the borrower(s) and the lender
• HomeStyle Renovation Multi-disbursement (Form 40) – For Originating Lender Title company to send draw requests to WHEDA
• Form 41 HomeStyle® Renovation Maximum Mortgage Worksheet – Completed by Originating Lender to determine maximum allowed renovations
• HomeStyle Renovation Mortgage Consumer Tips (Form 1204) - signed and dated by the borrower(s) 

Non-WHEDA Documents Required

• Contractor is required to provide Borrower(s) with a Scope of Work that 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)

• An Escrow Agreement between the Originating Lenders title company and the Borrower(s) must be signed and dated by both parties

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:

Resources

• Section 3.04 of the WHEDA Advantage Conventional Guide
• Section 10.10 of the Policy and Procedures Guide,
• Fannie Mae’s Selling Guide

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

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

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

• Tax Advantage Matrix
• Tax Advantage Origination Guide (Updated 11/8/16)
• Tax Advantage Forms and Exhibits 
• Income and Purchase Price Limits
• Target Area Maps 
• Recapture Tax Guaranty Information
• TRID Frequently Asked Questions
• Watch this video to learn how to get certified for the MCC program

• Product Matrix (Updated 12/28/18)
• Overlay Grids (Updated 12/28/18)
• Underwriting Guide (Updated 11/9/18)
• Forms and Exhibits
• Income and Loan Limits
• TRID Frequently Asked Questions

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

• Product Matrix
• Income and Purchase Price Limits
• High Housing Need Map (N/A with limited time waiver!)
• Form 29 - Compliance Income Request
• Tips for WHEDA-Connect
• Promissory Note
• Mortgage

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

• Eligibility Matrix (Updated 8/13/18)
• TRID Frequently Asked Questions
• Documents in WHEDA's Name
  • Note
  • Mortgage
  • Loan Estimate
  • Closing Disclosure
• Documents in Lender's Name
  • Note
  • Mortgage
  • Assignment of Mortgage
  • Loan Estimate
  • Closing Disclosure

• Product Matrix
• Underwriting Guide
• Forms and Exhibits
• Income Limits

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