WHEDA loan for the tax credits?

7 Replies

My lender presented the option to take out a WHEDA loan for my downpayment to take advantage of the tax credits. I have money for the downpayment but I want to maximize my savings for future properties. I was originally going to do a conventional loan but want to take advantage of being a first time buyer- house hack, through FHA. Does anyone have experience with WHEDA? Pros and cons?

Do Not do it.

I did a WHEDA loan for my first duplex. I did not do my due diligence on reading the fine print of the loan. WHEDA loans must be owner occupied the whole period of the loan. My lender initially told me that this was not the case and that it's the same as conventional. Turns out that is not the case.

(If anyone else has ever re-fiananced out of WHEDA loan, I am all ears. As I am currently trying to refinance and having issues finding another lender willing to work with refinancing out a WHEDA loan.)

@Ana Contreras I have not done the refiance yet. To try and find the best solution I contacted WHEDA directly and asked them if they have ever experienced this issue before.

I was told by the phone operator that if Imove for work related reasons Ican move out of the property and they are fine with it as long as the mortgage is paid on time every month. (This was all done verbally and they will not put in writing).

So right now I am considering should I refiance or just take their word and move into another property that is better for my life situation.

@Ana Contreras thanks for the feedback. Yea I think I am just going to take their word and move onto the next. It's really frustrating that both my loan officer and WHEDA officer say that it is fine, but then the contract says otherwise

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