Dream of owning a home in Wisconsin? Our guide on Wisconsin first time home buyer grants will assist in achieving your dream. Whether you’re setting your sights on bustling Madison, charming Milwaukee, lakefront Kenosha, historic Racine, vibrant Green Bay, or a cozy corner anywhere in the state, your journey starts with the Wisconsin Housing and Economic Development Authority (WHEDA).

WHEDA is dedicated to helping Wisconsin residents, including first-time homebuyers, achieve their dream of affordable homeownership. They offer a variety of programs and resources tailored to different needs and income levels.

Looking for additional support? Many larger Wisconsin cities, like Madison and Milwaukee, have their own local home-buying assistance programs. Combining these city-specific options with WHEDA’s offerings can significantly boost your chances of securing an affordable home.

Don’t let the financial hurdles hold you back from owning your piece of the Badger State. Start exploring your options with WHEDA and your local community resources today.

Wisconsin first time homebuyer loan programs

WHEDA Advantage Conventional loan

The Wisconsin Housing and Economic Development Authority (WHEDA) provides the Advantage Conventional loan, a 30-year fixed-rate mortgage, which can be coupled with their down payment assistance initiatives. This mortgage option features a reduced interest rate and lower mortgage insurance for those meeting specific income criteria, catering to both first-time homebuyers and non-first-time buyers. Additionally, first-time buyers may access special pricing under this program.

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Whether you’re searching for a home in Madison, Milwaukee, Kenosha, Racine, Green Bay, or any other part of The Badger State, start with the Wisconsin Housing and Economic Development Authority (WHEDA). WHEDA aids residents, including first-time homebuyers, in acquiring affordable housing. Additionally, numerous larger municipalities throughout the state offer local homebuying assistance.

Wisconsin’s first-time homebuyer loan programs include the WHEDA Advantage Conventional loan. This 30-year fixed-rate conventional loan can be utilized alongside the agency’s down payment assistance programs. It offers a lower interest rate and reduced mortgage insurance for individuals below a specific income threshold. While it’s available to all homebuyers, first-time buyers may access special pricing through this program.

Furthermore, WHEDA provides a conventional HomeStyle Renovation loan for those interested in purchasing and renovating a home with a single mortgage. This covers financing for the home’s purchase price, renovation costs, and up to six months of mortgage payments.

To qualify, you’ll need:

• A minimum credit score of 620
• Completion of a homebuyer education course for first-time buyers or a landlord education course for those purchasing a two to four-unit property
• Meeting WHEDA’s income limits, which vary based on household size and the county where the property is situated
• Purchasing a single-family home, condominium, townhome, manufactured home (doublewide), or a two to four-unit property in Wisconsin
• Adhering to WHEDA’s purchase price limits for first-time homebuyers
• Intending to use the purchased property as your primary residence.

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WHEDA Advantage FHA loan

WHEDA also offers a 30-year fixed-rate FHA loan that can be paired with the agency’s down payment assistance programs, catering to both repeat and first-time homebuyers. The eligibility criteria include:

• A 3.5 percent down payment (with down payment assistance available)
• A minimum credit score of 640
• Borrowed amounts must not exceed FHA loan limits, determined by county and property type.
• Completion of a homebuyer education course for first-time buyers; completion of a landlord education course for those purchasing a two-unit home
• Meeting WHEDA’s income limits, varying by household size and property location
• Purchasing a single-family home, HUDapproved condominium, townhome, manufactured home (doublewide), or two-unit home in Wisconsin
• Using the purchased property as the primary residence.

Wisconsin down payment assistance

WHEDA Easy Close DPA

WHEDA extends its Easy Close Down Payment Assistance (DPA) program alongside its Advantage Conventional and FHA loans. This program offers a minimum of $1,000 and a maximum of 6 percent of the home’s purchase price in assistance.

The assistance is structured as a 10-year fixed-rate mortgage with monthly payments and carries the same interest rate as the initial mortgage. It’s accessible to both first-time and repeat homebuyers who meet the requirements for a first mortgage, with no extra application necessary.

WHEDA Capital Access DPA

WHEDA provides the Capital Access Down Payment Assistance (DPA) program, available to buyers utilizing either of the agency’s first mortgage programs (Advantage Conventional or FHA). This program furnishes $7,500 in assistance through a 30-year fixed-rate mortgage with no interest and no monthly payments. While there are income limits for qualification, they differ from the requirements for the first mortgage and are usually lower, as indicated by the agency.

Additional homebuyer assistance programs available in Wisconsin

HomeBuy the American Dream

Madison’s HomeBuy the American Dream program offers down payment and closing cost assistance ranging from $1,000 to $35,000, with no interest or monthly payments required. Borrowers repay the assistance when the home is sold or when they refinance the first mortgage. Repayment includes the assistance amount plus a portion of the appreciation.

Eligibility criteria for borrowers include being a first-time homebuyer (or not owning a home in the past three years) or a single parent with a dependent minor and purchasing a single-family home, condominium, or half of half-of-a duplex in Madison. Additional requirements include:

• Securing a 30year first mortgage
• Contributing 1 percent towards the purchase
• Meeting income limits, which vary depending on household size
• Maintaining liquid assets after closing that do not exceed one year’s worth of PITI payments.

Milwaukee Home Down Payment Assistance

Milwaukee provides forgivable down payment assistance grants of up to $5,000 for first-time homebuyers (or up to $7,000 in specially designated areas; eligibility can be verified on the MyMilwaukeeHome website). These grants are applicable towards both down payment and closing costs.

Key program requirements include:

• Residency in Milwaukee at the time of application
• A minimum personal contribution of $1,000 from the borrower
• Purchasing a primary residence and residing there for a minimum of five years
• Completion of a homebuyer education course.

Conclusion on Wisconsin First Time Home Buyer Grants.

Wisconsin offers a variety of first-time homebuyer grants and assistance programs aimed at making homeownership more accessible. These programs, provided by organizations such as WHEDA and local city governments like Madison and Milwaukee, offer down payment assistance, closing cost grants, and forgivable loans to eligible individuals. Whether it’s through statewide initiatives or city-specific programs, these grants aim to empower first-time homebuyers by easing the financial burden of purchasing a home and promoting stable homeownership within the state. By taking advantage of these resources, eligible individuals can fulfill their dreams of homeownership and build a stronger foundation for their future.

Frequently asked questions

1. What is WHEDA?

WHEDA stands for the Wisconsin Housing and Economic Development Authority. It is a state agency that offers various programs and initiatives to promote affordable housing and homeownership in Wisconsin.

2. Who qualifies as a first-time homebuyer?

Typically, a first time homebuyer is someone who has not owned a principal residence within the past three years. However, specific eligibility criteria may vary depending on the program.

3. What types of assistance are available for first-time homebuyers in Wisconsin?

Wisconsin offers a range of assistance programs, including down payment assistance, closing cost grants, forgivable loans, and low-interest mortgage options.

4. How do I apply for first-time homebuyer grants in Wisconsin?

The application process varies depending on the program. Generally, you would need to meet the eligibility criteria and submit an application through the relevant agency or organization administering the grant.

5. Are there income limits for eligibility?

Yes, many first-time homebuyer grants in Wisconsin have income limits to ensure assistance reaches those who need it most. These limits may vary depending on household size and the specific program.

6. Do I need to complete a homebuyer education course?

In many cases, yes. Some programs require first-time homebuyers to complete a homebuyer education course to qualify for assistance. This course provides valuable information on the home-buying process and the financial responsibilities of homeownership.

7. What happens if I sell my home or refinance my mortgage?

Depending on the program, some grants may be forgivable under certain conditions, such as maintaining the home as your primary residence for a specified period. However, it’s essential to review the terms of the grant to understand any repayment requirements.

8. Where can I find more information about first-time homebuyer grants in Wisconsin?

You can find detailed information about available grants and programs on the websites of organizations such as WHEDA, as well as through local city governments and housing agencies. Additionally, attending workshops or consulting with housing counselors can provide valuable guidance.