Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in Wisconsin
The Home-Buy the American Dream program was created by the City of Madison Department of Planning, Community & Economic Development to help low- to moderate-income first-time homebuyers purchase a home within the City of Madison and/or Dane County.
The applicants are offered assistance with closing costs and down payment in the form of a deferred loan through the Home-Buy the American Dream Program. The City of Madison can provide assistance up to $20,000, while Dane County can provide $5,000. For both, the minimum amount is $1,000. Moreover, repayment is not required until the sale, cash-out refinance for other reasons besides improvements for the property, the property is transferred, or the home is no longer the primary residence of the homebuyer.
This is not too dissimilar to the first-time homebuyer assistance programs in West Virginia.
All applicants for the Home-Buy the American Dream program must be first-time homebuyers and have never owned a home for the last three years. The household’s annual income must be within the program’s income limits (shown below). Then, they must be eligible for a 30-year term first mortgage, and contribute 1% from their own money.
Single-family homes, condos or duplexes located in Madison or Dane County are eligible property types. Only Madison properties will be subject to a Housing Quality Standards inspection (HQS). Then, the properties built before 1978 are required a Lead-Based Paint Inspection. Meanwhile, a copy of a private 3rd party inspection must be provided by the borrower for Dane County properties located outside of the City of Madison.
- 1-person household: $52,850
- 2-person household: $60,400
- 3-person household: $67,950
- 4-person household: $75,500
- 5-person household: $81,550
- 6-person household: $87,600
- 7-person household: $93,650
- 8-person household: $99,700
The Wisconsin Housing and Economic Development Authority (WHEDA) provides down payment assistance for borrowers who are eligible for WHEDA Advantage mortgages through the Easy Close Advantage Program.
The Easy Close Advantage Program, a fixed-interest loan with 10-year terms, is designed to assist individuals in paying down payments and closing costs related to a mortgage. The loan allows immediate access to funds upon closing. Additionally, they give borrowers access to free educational resources, like homebuyer education, and credit counseling from WHEDA’s network partners. *Refinance is not possible.
Borrowers can be eligible for the Easy Close Advantage Program, and also qualify for a WHEDA Advantage mortgage. They must fulfill certain conditions in order to be eligible. All applicants must have excellent credit, and an annual household income within the program’s determined limits. Additionally, all borrowers require a completed pre-purchase education.
Properties bought through the Easy Close Advantage Program must be the borrower’s primary residence. WHEDA’s loan limits allow applicants to purchase an existing single-family home or duplex. But for properties with two units, landlord counseling is required.
This program provides financial assistance to qualified applicants who are interested in purchasing a home, but cannot afford the down payment, closing costs, and prepaid items to gain homeownership. These costs can be significant. People might find themselves stuck in a renters’ trap if they are unable to pay them.
Are you interested in the First-Time Homebuyer Assistance Programs in Wyoming?