State Housing Finance Authorities Resuming Lending, Up To 100% Financing

After 18 months of not funding single-family loans, the Wisconsin Housing and Economic Development Authority (WHEDA) re-entered the affordable home loan market with the help of Fannie Mae. The WHEDA Fannie Mae Advantage is available beginning March 1st.

February 16, 2010

After 18 months of not funding single-family loans, the Wisconsin Housing and Economic Development Authority (WHEDA) re-entered the affordable home loan market with the help of Fannie Mae. The WHEDA Fannie Mae Advantage is available beginning March 1st.

WHEDA is the first HFA to become a participating member of the agreement. Highlights include:

  • 100% financing for borrowers with excellent credit
  • A low-cost, 30-year fixed interest rate
  • As little as $1,000 cash out-of-pocket, reducing the amount of money borrowers need to close
  • Reduced mortgage fees, including no private mortgage insurance requirement
  • Job loss payment protection, which covers up to six months of mortgage payments in the event of an involuntary job loss
  • The WHEDA Fannie Mae Advantage can be paired with the home buyers tax credit

HFAs issue tax-exempt mortgage revenue bonds to fund investments in single family mortgages. WHEDA was forced to suspend its home loan program due to significant disruptions in the capital markets. California's CalHFA recently received $5.4 billion in financing assistance as part of the U.S. Department of the Treasury’s liquidity program for state housing finance agencies – credit support that will allow it to re-start programs in the first months of 2010.

The U. S. Treasury’s decision to buy $325 million of WHEDA’s long term bonds in 2010 is providing WHEDA the lower-cost cash it needs to fund its investment in single-family mortgages. Nationwide, through more than 90 participating HFAs, the HFA Initiative provides affordable financing available to hundreds of thousands of new homebuyers and existing homeowners, as well as support the development and rehabilitation of multi-family rental properties.

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