The Wisconsin Housing and Economic Development Authority (WHEDA) has
unveiled a new product to make home ownership more accessible and affordable.
The Capital Access Advantage is now available to help qualify more borrowers
for an affordable WHEDA home mortgage. This new second mortgage product is a
low-cost, deferred down payment assistance loan designed for home buyers in
specific Wisconsin markets that have high housing needs.
“WHEDA continually strives to create opportunities to help more Wisconsin
families become homeowners,” said WHEDA Executive Director Wyman Winston. “The
Capital Access Advantage is a low-cost solution to help more home buyers access
an affordable WHEDA mortgage.”
WHEDA’s Capital Access Advantage provides a $3,500 loan to be used for a down
payment and closing costs. The down
payment assistance loan has 0.00% annual percentage rate (APR), a deferred
payment with the loan payable at the time the first mortgage is paid in full,
and no prepayment penalties.
The Capital Access Advantage must be combined with a WHEDA first mortgage loan,
which can have up to a 105% combined-loan-to-value (CLTV) ratio. Eligible properties must be located within a
housing need market area. The only borrower cost is a recording fee. Qualified
home buyers must meet eligibility requirements as well as income and purchase
“Our exciting new
product is significant because it’s yet another WHEDA tool our hard-working lending
partners can use to not only grow their business but also expand home ownership
throughout Wisconsin,” said David Rouse, Director of WHEDA’s Single Family
WHEDA’s Capital Access Advantage is made available through the Capital
Magnet Fund. Last September the U.S.
Department of the Treasury's Community Development Financial Institutions (CDFI) Fund
awarded WHEDA a
Capital Magnet Fund grant of $5,470,000. WHEDA won the second largest award in the
country and was the only winner in Wisconsin.
Magnet Fund awards can be used to finance affordable housing and economic
development activities. WHEDA allocated $3.5 million toward the new Capital
Access Advantage down payment assistance program.
For more information about WHEDA’s Capital Access Advantage and to view a
product target area map go to www.wheda.com/home-buyers/available-programs.
For 45 years, WHEDA,
as an independent state authority, has provided low-cost financing for housing
and small business development in Wisconsin. Since
1972, WHEDA has financed more than 84,000 affordable rental units, helped more
than 122,000 families purchase a home and made more than 29,000 small business
and agricultural loan guarantees. For
more information on WHEDA programs, visit wheda.com or call 800-334-6873.