WHEDA is making some changes
WHEDA is making significant changes to their program. See details below, but to summarize they’re now going to have four loan programs – two with 100% financing, one at 80% and another with monthly private mortgage insurance. They’ve also added in another down payment assistance program. More details will follow as I have them. Following is information I received from WHEDA:
Single Family Update 2010-008
More WHEDA Advantage choices mean more loan closings for you.
To grow your business, there are now more WHEDA Advantage choices to meet your borrowers’ mortgage needs. Effective September 1, the WHEDA Advantage will have new down payment assistance and new pricing options!
Easy Close Advantage down payment assistance loan
Back by popular demand is our Easy Close Advantage loan. This loan provides your borrower with down payment and closing cost assistance on a WHEDA first mortgage loan. The maximum loan is $3,000 with an interest rate that’s just 1% higher than the proposed WHEDA first mortgage. The minimum loan-to-value is 95%. Education through a WHEDA-approved credit counseling agency or WHEDA Home Buyer Workshop is required. Click here to learn more details.
WHEDA Fannie Mae Advantage loan pricing options
Beginning September 1, there will be four pricing options with the WHEDA Fannie Mae Advantage to help lenders match their borrowers to the WHEDA product that is best for their financial situation.
Advantage is our current WHEDA Fannie Mae Advantage loan featuring up to 100% loan-to-value. This loan pricing option also
- Has no private mortgage insurance requirement
- Includes the loan level pricing adjustment in the interest rate
- Scored through Desktop Underwriter using the HFA Affordable Advantage community lending product
Advantage - Low LTV is our lowest closing cost option for your borrowers with a 20% down payment and sufficient funds for closing. This loan pricing option also
- Has no private mortgage insurance requirement
- Includes the loan level pricing adjustment in the interest rate
- Features a maximum 80% LTV
- Scored through Desktop Underwriter using the My Community Mortgage community lending product
Advantage – Price Point has a lower interest rate because the borrower pays a 2.75% loan level pricing adjustment. This loan pricing option also
- Has no private mortgage insurance requirement
- Allows for up 100% loan-to-value
- Eligible for Easy Close Advantage to pay for the loan level pricing adjustment
- Scored through Desktop Underwriter using the HFA Affordable Advantage community lending product
Advantage — MI Choice has a lower interest rate and no LLPA because private mortgage insurance is required. This loan pricing option also
- Requires use of a WHEDA approved mortgage insurance provider (see below)
- Requires the mortgage insurance provider to perform the initial full application package underwrite. Once a commitment is received the application is submitted to WHEDA for final review
- Scored through Desktop Underwriter using the My Community Mortgage community lending product
Interest rates for these loan pricing options will be available on our website the week of August 23.
WHEDA-approved mortgage insurance partners
For the WHEDA Fannie Mae Advantage – MI Choice pricing option, the following mortgage insurance partners are eligible:
CMG Mortgage Insurance Company (CMG)
Genworth Mortgage Insurance Corporation (Genworth)
Mortgage Guaranty Insurance Corporation (MGIC)
Republic Mortgage Insurance Company (RMIC)
Access to premium rates for our approved partners will be provided through our website in the coming weeks. Contact your local mortgage insurance account managers for more details.
Financing repairs into the WHEDA Advantage
Does the appraisal call for a new roof? Is the carpet stained and in need of replacement? Effective immediately, you can now finance these types of required or discretionary repairs up to $10,000 into your borrowers’ WHEDA Advantage loan. Check out the Property Chapter in the WHEDA Fannie Mae Advantage Origination Guide for more details!
Exhibits for Appraisals
Fannie Mae recently announced new exhibit requirements that must accompany appraisals effective on September 1. Review the Property Chapter in the WHEDA Fannie Mae Advantage Origination Guide for these new requirements.
WHEDA’s Origination Guide and Forms have been revised to reflect the Easy Close Advantage and our new pricing options. Please review these new materials so that you are ready on September 1. Remember to discard all old forms to help expedite your loan file!
If you have any questions regarding this information, call 1-800-334-6873 or e-mail us at info@wheda.com.
