State Offers Low-Interest Home Loans to Teachers

UPDATE: The funds for this program were all committed as of March 2004. For more information, read the WHEDA news release.

A state agency is offering a reduced mortgage rate to any full-time teacher in Wisconsin who teaches kindergarten through 12th grade, under a program announced by Governor Jim Doyle.

The Home for Heroes interest rate is .25% lower than the standard HOME Program rate at the time of rate lock, under the program offered through the Wisconsin Housing and Economic Development Authority. The deal is also available to police and firefighters.

In announcing the program, Doyle expressed regret that it was necessary.

"We must end situations where public servants who protect us and teach our children cannot afford to live in the cities that they serve," the governor said.

In addition to the reduced interest rate, the following benefits also apply.

• Income limits and first-time homebuyer requirements are waived for borrowers purchasing properties in the HOME Program target areas.
• The borrowers' downpayments can be as little as $500 or 1% of the purchase price, whichever is less. The remainder of the minimum down payment of 3% can be from downpayment assistance programs, gifts or through WHEDA's HOME Plus Program.
• Flexible underwriting for borrowers with non-traditional credit histories.
• All other standard HOME Program compliance and underwriting guidelines apply.

The lower interest rate does not apply in special reduced interest rate areas and the lower down payment may not apply to special programs with specific underwriting criteria.

The state has committed $10 million for this initiative. It will be available until the funds are fully utilized or December 30, 2004, whichever comes first.

WHEDA is an independent state authority that works with lenders to provide low-cost financing for housing and small business development in Wisconsin. For more information on WHEDA’s housing programs, call 1-800-334-6873 or visit www.wheda.com.

For more information about the Homes for Heroes program, contact Larry Odegaard at 800-334-6873.

Posted December 3, 2003