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WHEDA Tax Advantage
If you’re eligible for a WHEDA loan you may also be eligible for the WHEDA Tax Advantage — an exclusive program designed to save you money and make home ownership more affordable! The program provides a special tax credit to qualified borrowers, which reduces their federal income tax liability over the life of the mortgage.
HOW DOES IT WORK?
Pair the Tax Advantage with a WHEDA loan or a similar mortgage program, and reduce the amount of federal taxes you owe by claiming up to 40% of your annual mortgage interest as a tax credit on your tax return.
When approved, you’ll pay lower taxes and have more money to put back into your home or into savings! Even better, the tax credit can be claimed for up to 30 years on the original mortgage!
- Annual tax credit is 25% for non-target areas and 40% for target areas or qualified veterans
- Maximum annual tax credit of $2,000 for the life of the mortgage
- Tax credit can be claimed for up to 30 years on the original mortgage
- Available to WHEDA borrowers and non-WHEDA borrowers
BENEFITS IN CONJUNCTION WITH A WHEDA MORTGAGE
- Recapture Tax Guarantee
- Lower fees
- All WHEDA Advantage loans are serviced by WHEDA’s top rate servicing team
- Available to first-time home buyers and the following exceptions:
- Borrowers purchasing a home in a Targeted Area
- Veterans with an Honorable Discharge (DD-214)
- Must meet Income and Purchase Price Limits
- 1-2 family residential units (2-unit properties must be more than 5 years old)
- Permanent financing of a newly constructed and completed home
- Primary principal residence
- Acquisition Rehabilitation