WCDA

WCDA was created by state statute as a corporate entity, operating as an instrumentality of the state that receives no state funding. WCDA raises capital for the mortgages it provides by selling mortgage revenue bonds to investors. Since the interest paid to bond holders is generally exempt from federal income tax, investors accept a lower rate. The WCDA passes these savings on to homebuyers by providing mortgages at below-market interest rates. The homebuyers’ mortgage payments repay the bonds.