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- Obama Extends the HARP Refinance Program for 2013
- IRS Supplies Guidance on Home loan Modifications
- Indiana State Mortgage Help for Those in Danger of Foreclosure
- Mortgage Assistance Available in Oregon
- Wisconsin Mortgage Assistance Programs
- How to Write the Mortgage Hardship Letter
- CHFA EMAP Program for Homeowners
Wisconsin Mortgage Assistance Program
Owning a home has challenges many people do not consider until they have a home and mortgage of their own. Often, it is this very lack of information that causes homeowners to fall behind in their payments and lose their home to foreclosure. This article describes three programs available to Wisconsin residents which will help you find and keep a home.
Home Buyer Education
This free program trains potential homeowners to be home ready, that is, understand the ins and outs of home ownership in Wisconsin. This program is especially important nowadays because of the changes brought by new lending guidelines. Learn what lenders are looking at when they assess your loan application. Find out which loans provide the best terms and how to decide how much you can afford to pay for your new home. Discover what taxes, insurance and other housing expenses you will have to pay once you are a homeowner. You can also attend a free landlord counseling course which helps you understand the rights and responsibilities you will have if you rent a property or a section of your home. If you use a federal or state program to buy a two-unit home, you may be required to attend a landlord counseling session as well as a basic home buyer education course.
Free Counseling Program
HUD sponsors hundreds of mortgage counseling agencies throughout the United States to help homeowners find help when they are facing foreclosure. These counselors can prove invaluable if you do not know what foreclosure avoidance programs you are eligible for and what you should do to qualify for them. You can find a list of certified counseling agencies in Wisconsin by clicking here. Note these counseling agencies will not charge you for their services nor try to sell you financial products they are invested in. Use these free counselors and avoid loan modification agents who require a payment for their services.
Down Payment Assistance
WHEDA, the Wisconsin Housing and Economic Development Authority provides eligible Wisconsin residents who wish to buy their first home with a ten-year loan of up to $3,000 to pay for the cost a home’s down payment. Down payments are on of the main reasons why people cannot afford a home. This program can be a great resource for households who have the necessary income to pay for a mortgage, but do not have the necessary savings to finance a down payment. The program provides a low interest and flexible eligibility requirements. The loan should only cost $34 a month for 10 years.
The main agency responsible for promoting the financing of housing for low- and moderate- income households in Wisconsin is the Wisconsin Housing and Economic Development Authority, WHEDA. In 2010 alone, WHEDA has assisted in the creation and maintenance of over 1,582 units.
Key Goals of WHEDA.
WHEDA liaises between lenders, borrowers, non-profit organizations, community groups and other institutions to improve the mortgage and housing opportunities available to Wisconsin residents. The funding of WHEDA does not come from tax dollars. Income is generated by selling tax-free bonds as investment tools. The profits from the sale of these bonds is then used to stimulate the creation of affordable housing in Wisconsin.
One of the key programs offered by WHEDA focuses on providing assistance to those that need it the most. This includes runaways, homeless persons, people with an alcohol or drug dependency, victims of domestic abuse, low-income families and elderly persons, the mentally-ill, disabled and people who are HIV positive. This program has awarded over $20 million to agencies requesting funds.
WHEDA FANNIE MAE ADVANTAGE
Many first-time buyers cannot afford a home due to the down payment and other initiation costs of home purchase, such as initiation and closing costs. The WHEDA FANNIE MAE Advantage program is designed to help low-income first-time buyers to buy a home with as little as $1,000 as down payment. If you are are a Wisconsin resident and are eligible for a WHEDA FANNIE MAE Advantage, the cost of buying your new home will be less than if you chose a commercial mortgage.
The WHEDA FANNIE MAE Advantage program is only for first-time buyers with a good credit score and enough income to pay monthly mortgage payments. Alternatively, you may qualify for this program even if you are not a first-time buyer if you plant o buy a home in a WHEDA target area. You must also have at least $1,000 to contribute towards the purchase of the house from your own savings. You must also meet the program’s income limits, (click here for table of Wisconsin income limits) and your home is worth less than your area’s purchase price limits (click for more details). To be eligible you must first complete a home buyer education course.
If you qualify for this exciting new program you should contact a participating lender and file your application. WHEDA does not usually offer loans directly, but insures the loans provided by participating lenders. Click here for a list of lenders who are part of this program categorized by area.