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Homebuyers
Is WHEDA Way Home Right for You?
A flexible path to homeownership
Every Wisconsin resident deserves the opportunity to build stability, wealth, and community through homeownership, but many borrowers face challenges when pursuing homeownership through traditional lending products. The solution is flexible lending for first-time homebuyers who are financially prepared for homeownership. If you pay bills on time, manage your budget responsibly, and are ready to move forward but do not qualify for traditional loans, WHEDA Way Home may be for you.
WHEDA Way Home evaluates a borrower’s overall financial picture, including current finances, past credit challenges and readiness for sustainable homeownership. The program is designed for borrowers who may not fit within the traditional “credit box” but have demonstrated financial responsibility, even if their credit has been impacted by life events.
Rather than relying solely on automated underwriting, WHEDA performs a comprehensive manual review of each loan application. Flexible loan parameters are designed to address common barriers to homeownership while promoting responsible lending. The long-term goal is to demonstrate a successful lending model that expands access to sustainable homeownership.
Program Highlights
- 30-year fixed-rate purchase mortgage
- Manual underwriting by WHEDA
- No minimum credit score requirement
- No private mortgage insurance (PMI)
- May be combined with eligible WHEDA and approved external Down Payment Assistance (DPA) programs
- Borrowers without a traditional credit score may establish credit using eligible non-traditional credit references
- Cash on hand may be considered when supported by program guidelines
- Maximum 45% debt-to-income (DTI) ratio
- Up to a $2000 closing cost credit
Eligible Borrowers
To be eligible, borrowers must:
- Be Wisconsin residents purchasing their first home
- Meet WHEDA First-Time Home Buyer income limits
- Have a minimum two-year history of stable income
- Demonstrate financial responsibility, such as paying rent and bills on time
- Have a valid Social Security number and proof of legal residency
- Home must be your primary owner occupied residence for the life of the loan.
Eligible Properties
Properties must be owner-occupied and serve as the borrower’s primary residence.
Eligible property types include:
- Single-family homes
- Condominiums
- Double-wide manufactured homes on owned land
- Two-unit owner-occupied properties
Next Steps
The best way to determine whether WHEDA Way Home is right for you is to speak with a WHEDA-approved participating lender. Your lender can review your financial situation, answer questions and help determine whether this program is the right fit.
Find a WHEDA Way Home Lender.
Lenders
Expand Homeownership Opportunities
WHEDA Way Home provides participating lenders with another financing option for borrowers whose financial strengths may not be fully reflected through traditional automated underwriting. Through manual underwriting, WHEDA evaluates each borrower’s overall financial picture to help expand access to sustainable homeownership while maintaining responsible lending standards.
Why Offer WHEDA Way Home?
Participating lenders can:
- Expand financing opportunities for more qualified borrowers
- Serve borrowers with limited or non-traditional credit histories
- Pair WHEDA Way Home with eligible down payment assistance programs
- Receive underwriting support from experienced WHEDA staff
Underwriting Process
Single Family Underwriters complete a comprehensive review of each loan file and present a recommendation to the Loan Committee. The Loan Committee makes the final credit decision after reviewing the complete loan file.
This process provides a holistic evaluation of borrowers whose strengths may not be fully reflected through automated underwriting program parameters.