Help members with their heating bills with WHEDA-backed loans
Many Wisconsin families may still be struggling to pay their propane
bills. Credit unions can help with a new guaranteed loan program.
The Wisconsin Housing and Economic Development
Authority (WHEDA) has launched its Consumer Heating Assistance Guarantee
Program (created by the Legislature as 2013 Act 175)
to assist people who are having difficulty paying their propane bills
due to this past winter’s high propane prices.
WHEDA-backed loans are
available for 120 days following the law’s enactment on March 27,
2014, meaning qualifying persons can apply for this type of loan through
July 25, 2014, to pay their propane bill.
Here are the loan program basics (details can
be found on the WHEDA website):
Loans are guaranteed for 50% of the amount
Terms cannot exceed two years
Maximum loan amount is $2,500
Interest rate is set by the lender (maximum 18%),
and the Consumer Heating Assistance Guarantee Program will pay an
additional 3.5% of the principal to reduce the interest rate by 3.5% or
1.75% for a one-year and two-year note respectively.
Qualified applicants must:
Be Wisconsin residents
Have a household income no higher than 200 percent of the median
income in their county
Be ineligible for conventional financing
Have a reasonable ability to repay the loan
Other conditions do apply (see website for details)