House Hack Financing with a WHEDA loan

2 Replies

My wife and I are looking to get approved for a duplex in West Allis WI and we have around $12K saved up. Talking with a lender to get a WHEDA loan they want us to have 6 months of rent worth of assets on top of the down payment. The lender said that based off our information we would have no problem getting a single family for the same price because we would not need the additional assets.

Are the additional assets mandatory, or is it up to the lender and can be negotiated?

Hey @Samuel Nigbur , congrats on saving saving up the down payment! West Allis is a great area. I recently purchased my first house-hack duplex there and it’s been a great experience. Lots of developments and fun things happening in the area.

I'm am not extremely familiar with WHEDA loans, but I know many lenders have recently increased their requirements due to Covid. I'd recommended reaching out to your mortgage broker with that question. I'd also recommend shopping around and checking out what other lenders can offer you. You probably already know, small local banks will work with you most. Many investors I know work with places like Waukesha State Bank, Tri-city, etc.

Many of these high reserve requirements have been established due to recently economic instability. It’s also hard to get financing right now. No one wants to lend with all this uncertainty. That being said - it’s not impossible. I know a couple people closing on properties within the next couple weeks.

Good luck!

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