Wisconsin First-Time Home Buyers Assistance Programs

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When you are ready to buy your first home, it’s a good idea to consider all of the options available, from where to live, to which property to buy, and what programs can help you along the way. Wisconsin has a lot to attract buyers, including four distinct seasons, an economic climate conducive to business, and a cost of living 6.5% lower than the national average.

Whether you’re looking for a home in Madison, Milwaukee, Kenosha, Racine, Green Bay, or anywhere else in Badger State, you’ll want to consult with the Wisconsin Housing and Economic Development Authority, which helps residents, including first time buyers, affordable and secure housing. Some of the larger municipalities in the state also offer local home buying assistance.

Wisconsin First-Time Buyer Loan Programs

WHEDA Advantage Conventional loan

The Wisconsin Housing and Economic Development Authority (WHEDA) offers a 30-year fixed rate conventional loan, Advantage Conventional, which can be used in tandem with the down payment assistance programs. This conventional mortgage has a lower interest rate and reduced mortgage insurance (if your income is below a certain threshold) and is open to first-time home buyers, although it is not a requirement. (However, new buyers can get special prices through this program.)

The agency also offers a classic formula HomeStyle Renovation Loan for those who want to buy and repair a home with a single mortgage, which includes financing the purchase price of the home, the renovation and up to six months of mortgage payments.

Borrower Requirements:

  • 620 minimum credit score
  • The amount borrowed cannot exceed compliant loan limit
  • Must take the Home Buyers’ Training Course if this is a first-time buyer; must take the owner training course if buying a two to four unit home
  • Must meet WHEDA income limits, which depend on the size of the household and the county where the property is located

Ownership Requirements:

  • Must be a single family home, condominium, townhouse, manufactured home (double width), or two to four unit home (3% down payment of borrower funds required if a two to four unit home)
  • Must be in Wisconsin
  • Must be a primary residence
  • Must meet WHEDA purchase price limits if first-time homeowner ($ 294,600 for a single-family home and $ 377,219 for a two to four-unit home outside of a “target area”)

WHEDA Advantage FHA Loan

WHEDA’s 30-Year Fixed Rate FHA Loan can also be combined with the agency’s down payment assistance programs and is available to repeat and first-time buyers.

Borrower Requirements:

  • 3.5 percent down payment (down payment assistance available)
  • 640 minimum credit score
  • The amount borrowed cannot exceed FHA loan limits, which depend on the county and the type of property
  • Must take the Home Buyers’ Training Course if this is a first-time buyer; must take the homeowners training course if buying a two-unit home
  • Must meet WHEDA income limits, which depend on the size of the household and the county where the property is located

Ownership Requirements:

  • Must be a single family home, HUD approved condo, townhouse, manufactured home (double width), or two unit home
  • Must be in Wisconsin
  • Must be a primary residence

Wisconsin Down Payment Assistance

WHEDA Easy-Close DPA

In conjunction with its Advantage Conventional and FHA loans, WHEDA offers the Easy Close Down (DPA) Payment Assistance Program, which provides a minimum of $ 1,000 and a maximum of 6% of the purchase price of the home in assistance. . The Easy Close program is a 10-year fixed rate mortgage with a monthly payment and the same low interest rate as the first mortgage. It’s available to both first-time home buyers and repeat home buyers who qualify for a first mortgage, and there is no additional demand.

WHEDA Access to DPA capital

WHEDA also offers the Capital Access DPA program for buyers using one of the agency’s first mortgage programs (Advantage Conventional or FHA). The program is a 30 year fixed rate mortgage with a zero percent interest rate and no monthly payments. There are income limits to qualify, but they are different from and generally lower than the first mortgage requirements, depending on the agency.

  • For conventional loan borrowers, the minimum access to capital PAD is $ 3,050 and the maximum is the greater of $ 3,050 or 3% of the purchase price of the home.
  • For FHA loan borrowers, the minimum is $ 3,050 and the maximum is the greater of $ 3,050 or 3.5% of the purchase price of the home.

Other Wisconsin Homebuyer Assistance Programs

Home-Buy the American Dream

The Town of Madison offers the Home-Buy the American Dream Down Payment and Closing Cost Assistance Program, which offers assistance ranging from $ 1,000 to $ 20,000 without interest or monthly payment, and is repaid by the City of Madison. borrower when the home is sold or the first mortgage is refinanced. At the time of repaying, the borrower will owe the amount of aid plus a portion of the appreciation.

To be eligible, the borrower must be a first-time buyer (or not have owned a home in the past three years) or a single parent with a dependent minor and purchase a single-family home, condo or home. half of a duplex in Madison or Dane County. There are also additional requirements, including that the borrower:

  • Must have a 30-year first mortgage
  • Must contribute 1% to purchase
  • Must meet income limits, which range from $ 54,950 for a one-person household to $ 103,650 for a household of eight
  • Must not have more than one year of PITI payments in liquid assets after closing

Article 32 Home ownership program

Offered by the Milwaukee Housing Authority, the Section 32 Home Ownership Program helps low-income residents purchase a home, selected from the authority’s rehabilitated property inventory. House prices are established by a third party appraiser.

The program is available to first-time homebuyers who currently live in social housing or who do not live in social housing but have low income (equal to or less than 80% of the county’s median income) or who are receiving benefits. rent assistance. A first-time buyer is considered to be someone who has not owned a home in the past three years.

The program includes the following requirements for borrowers:

  • Must contribute at least 1% to the purchase
  • Must live in the house as a primary residence for at least five years
  • Must attend HUD Home Ownership Advice

It may be possible to get a second mortgage with discount to help with the purchase through this program, and there is also no property tax for the year you purchase the home.

Other first-time home purchase loan programs

While you are considering first-time home buying programs in Wisconsin, be sure to explore national programs that could also help you meet your homeownership goal. Check out Bankrate’s helpful guide to first-time home purchase loans and programs to know your options.

For other Wisconsin homeownership programs, including by city, visit HUD.gov.

To start

Now that you know your options as a first-time home buyer in Wisconsin, you are ready to begin. The Wisconsin Housing and Economic Development Authority (WHEDA) has a network of mortgage lenders and brokers to help you narrow down your choices. The agency also manages its mortgages and has a team of professional loan advisors who provide customer service directly to borrowers.

Whatever first-time home buyer loan in Wisconsin you choose for your purchase, it’s important to look for the lowest. mortgage rates. Carefully compare loan offers, including annual percentage rate (APR) and fees, to make sure you get the best deal for your unique situation.

Neighboring State Homeownership Programs

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