Home Buyer
Top credit score not necessary for a WHEDA Loan
WHEDA, Wisconsin Housing and Economic Development Authority, does not require perfect credit scores to qualify for its loans.
WHEDA is Wisconsin’s special program of assistance to first time home buyers with less than perfect credit and little savings.
If you have a score of at least 660, you may qualify for WHEDA financing. The score of 660 is at the low end of what is considered good credit. This range runs from 620 to 900. The ratings break down on credit is as follows:
- 800 to 900 is excellent
- 720 to 799 is very good
- 680 to 719 is considered good
- 620 to 679 credit score is viewed as “okay” of “fair” by most evaluators of your credit. In this range of scores you will find fewer loan approvals, various restrictions, and not the lowest interest rates. This range however is quite common and not a crisis or something to agonize over. However, in the long run one must work on her or his score.
WHEDA’s minimal of 660 lies within this bottom tier of the acceptable span of credit scores. So if you thought that you could not get any kind of loan including a loan through a special government program, then you are wrong.
Also, if your score is below 660, WHEDA could require you to increase your down payment.
If this is enticing to you, then here are some criteria and features of WHEDA financing:
- 100% percent financing with a low cost 30 year fixed interest rate
- Currently, as of 7/5/10, the WHEDA FannieMae Advantage loan has a rate of 5.822% APR
- $1000 in out of pocket cash is required from the buyer
- No private mortgage insurance required
- Maximum income depending on county ranges from $66,000 to $83,900 for one or two member households
- House price limits are $235,000 to $280,000 depending on county
- These loans are not for Condominiums, they are deemed too risky
- Property purchased must be owner occupied
- A before-purchase homebuyer education course is required
- Most WHEDA buyers are eligible for a job loss mortgage protection. If you experience an involuntary job loss, you may have your mortgage payments covered for up to six months.
WHEDA is a great program for those with little savings and modest credit scores.
WHEDA had been suspended for 17 months after the 2008 financial collapse; this year it received a cash infusion of $180 million for a predicted 1800 clients in 2010 beginning on March 1st.
Perhaps, you can be one of these individuals or families who take advantage of WHEDA’s great service.
If you would like more information, please call us at 608 770 0482 for assistance. We can connect you with a lender that offers WHEDA loans.