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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 primarily follows FannieMae® guidelines with the exception of WHEDA specific features found on our "Advantage Conventional Eligibility Matrix.

    PLEASE NOTE: Any guideline that is not specifically addressed on the Advantage Conventional Eligibility Matrix will follow FannieMae® guidelines and can be found in Fannie Mae's Selling Guide.

    Advantage Conventional Features and Benefits(1)

    • Available statewide to all WHEDA approved lenders
    • SFR, 2-4 units, condominiums and manufactured homes allowed
    • Up to 97%LTV/105% CLTV based on property type
    • 620 minimum credit score
    • All loans >80% LTV have HFA Preferred (with MI) or HFA Preferred Risk Share (No MI) option
    • 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  
        • Specific borrower type,(2) if applicable
        • 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 Enhancements

      The Advantage Conventional program has four enhancements noted below. The enhancements follow all Advantage Conventional guidelines, along with eligibility requirements noted below:

      • First Time Home Buyer (FTHB)* - An individual who has not owned a principal place of residence or had the benefit of home ownership in the last three years
        • All borrowers must meet requirement
      • Eligible Veterans (VALOR)* - Military veteran with a DD-214 showing honorable discharge or release (COE will not replace)
        • One borrower must meet requirement
      • Designated Target Area* - Subject property is located in target area
      • HomeStyle® Renovation - Eligible borrowers may be able to include the costs to renovate or repair a property in their purchase mortgage or WHEDA to WHEDA refinance.
        • Purchase borrowers eligible for FTHB, VALOR and Target Area Enhancements are eligible to use HomeStyle® Renovation enhancement concurrently

      (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

      (2)First time home buyer, eligible veteran and borrowers purchasing in a target area have separate income limits, and also a purchase price limit

      HomeStyle® Renovation is a registered trademark of Fannie Mae


      Advantage Conventional Enhancement - HomeStyle® Renovation

      HomeStyle® Renovation is an enhancement to the Advantage Conventional Program

      Lenders that would like to participate in offering the HomeStyle® Renovation enhancement will need to have their loan originators certified before originating loans with the enhancement. Please contact Sales@WHEDA.com for training. 

      • All current WHEDA Advantage Conventional Eligibility Matrix parameters apply
      • The Conventional Advantage Eligibility Matrix provides all HomeStyle® Renovation specific guidelines
      • 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

      HomeStyle® Renovation

      • Allows a borrower to purchase a property, or refinance an existing WHEDA loan and roll allowable costs* INTO THE MORTGAGE TRANSACTION (if the value will support financing - see "Subject Property Valuation Determination)
      • Complete the repairs, renovations or rehabilitation up to 6 months after closing
      • After closing and purchase, WHEDA will handle all aspects of renovation project in conjunction with lender title company

      HomeStyle® Renovation Subject Property Value Determination

      HomeStyle® Renovation "maximum amount of improvements" allowed is determined by:

      For clarification, please see the chart below:

      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?(2)

      Renovation-related costs* include, but are not limited to: 

      • 10% contingency reserve (based on hard costs - labor and materials)
      • Property inspection, permit, independent consultant or architect fees
      • Fees for title update
      • Up to six months (PITI) if the borrower is unable to occupy the subject property at the time of closing

      (2)Lesser of purchase price + cost of renovations or "subject-to" value will determine if financing will be supported

      Eligible repairs, renovations and improvements must be permanently affixed to the subject property. HomeStyle® Renovation cannot be used for:

      • Secondary garages or outbuildings
      • Structural changes or additions to manufactured Homes
      • Exterior changes to condominiums or anything non-permissible per HOA by-laws
      • Luxury items

      Contractor/business entity/individuals utilized for renovation project requirements: Dwelling contractor (if used) must be licensed by the State of Wisconsin

      • Non-dwelling contractors and individuals must be licensed by the State of Wisconsin
      • Each dwelling contractor, business entity and individual providing contracted work on the renovation project MUST:
      • Provide borrower(s) with a scope of work/contract fully executed

      A "do it yourself" option is not allowable - no exceptions

      HomeStyle® Renovation WHEDA Required Documents

        Resources

        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