MADISON, Wis. -- Wisconsin's affordable housing agency will resume lending to first-time home buyers starting March 1 after a 17-month suspension.

The Wisconsin Housing and Economic Development Authority said low- and middle-income buyers with good credit will qualify for its new Fannie Mae Advantage product.

The loan will include a 30-year mortgage with a fixed-interest rate and significantly reduced closing costs.

WHEDA officials estimate they could issue $180 million in loans or more this year under the program.

Its lending had been suspended since October 2008 because of the economic downturn. But Friday, it became the first housing agency in the country to start a program based on the U.S. Treasury's decision last November to invest in mortgage revenue bonds issued by Housing Finance agencies like WHEDA.

Under the new WHEDA Fannie Mae Advantage program, it's estimated 1,800 additional Wisconsin families will be able to realize the dream of home ownership.

Despite the economy and ongoing foreclosures, experts said the time is right to expand home loans through WHEDA, which has a very low default record.

"That's why we said to the Treasury, if you really want to get the economy going again, and if you purchase our housing bonds, there is minimal risk to taxpayers. We're the safest investment in town to get the economy growing again," said WHEDA Executive Director Antonio Riley.

The new program offers low-cost, 30-year fixed rate mortgages.

To qualify for the Fannie Mae Advantage product, people must have good credit and meet income limits -- which have been expanded.

For example, a one- or two-person household in Madison can make up to $95,000 and still qualify for a loan with as little as $1,000 down.

The loan also covers up to six months of mortgage payments in the event of an involuntary job loss.

And in certain target areas, a person doesn't even need to be a first-time buyer to take part in the program.

Officials are still determining the interest rate but said it will be lower than the market rate when all components are considered.

To get information on the loan product, people can visit www.wheda.com or call 1-800-334-6873.