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First time home buyer Wisconsin information and buyer assistance programs to help first time home buyers purchase their first home.
When you’re ready to purchase your first house, it’s a good idea to evaluate all of your options, including where to live, what type of property to purchase, and what assistance programs are available.
Four distinct seasons, a business-friendly economic climate, and a cost of living 6.5% below the national average are just a few of the factors that attract homeowners to Wisconsin.
Whether you’re looking for a house in Madison, Milwaukee, Kenosha, Racine, Green Bay, or anyplace else in The Badger State, the Wisconsin Housing and Economic Development Authority helps residents, including first-time homebuyers, acquire affordable housing. Additionally, several of the state’s largest municipalities offer local homebuying help.
First Time Home Buyer Wisconsin Loan Programs
WHEDA Advantage Conventional loan
Advantage Conventional is a 30-year fixed-rate conventional loan offered by the Wisconsin Housing and Economic Development Authority (WHEDA) that can be utilized in conjunction with the agency’s down payment assistance programs.
This conventional mortgage provides a cheaper interest rate and reduced mortgage insurance (if your income falls below a particular threshold) and is available to first-time homebuyers, but this is not required. (However, first-time buyers can receive discounts through this program.)
The agency also offers a traditional HomeStyle Renovation loan for customers who wish to purchase and renovate a property with a single mortgage, which covers financing for the home’s purchase price, the renovation, and up to six months’ worth of mortgage payments.
Borrower prerequisites:
⮞ Minimum credit score of 620
⮞ Borrowed amount cannot exceed conforming loan limit
⮞ A first-time buyer must take a homebuyer education course; a buyer of a two- to four-unit property must complete a landlord education course.
⮞ Must meet WHEDA income requirements, which vary by household size and county of residence
Property prerequisites:
⮞ Must be a single-family home, condominium, townhome, double-wide mobile home, or two- to four-unit home (3 percent down payment from borrower funds required if a two- to four-unit home)
⮞ Must be located in Wisconsin
⮞ Must be the primary residence
⮞ Must fulfill WHEDA purchase price limits for first-time buyers ($294,600 for a single-family house 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 is offered to repeat and first-time homebuyers and can be paired with the agency’s down payment assistance programs.
Borrower prerequisites:
With a down payment of 3.5 percent (down payment assistance available)
⮞ Minimum credit score of 640
⮞ The amount borrowed cannot exceed the FHA loan limits, which vary by county and property type.
⮞ First-time homebuyers must take a homebuyer education course; landlords purchasing a two-unit property must complete a landlord education course.
⮞ Must meet WHEDA income requirements, which vary by household size and county of residence
Property prerequisites:
⮞ Must be a single-family home, HUD-approved condo, townhome, double-wide mobile home, or two-unit home
⮞ Must be located in Wisconsin
⮞ Must be a primary residence
Wisconsin down payment assistance
WHEDA Easy Close DPA
Alongside its Advantage Conventional and FHA loans, WHEDA offers the Easy Close down payment assistance (DPA) program, which covers between $1,000 and 6% of the home’s purchase price.
The Easy Close program is a 10-year fixed-rate mortgage with the same low interest rate as the initial mortgage and a monthly payment.
It is open to both first-time and repeat homeowners who qualify for a first mortgage, and no further application is required.
WHEDA Capital Access DPA
WHEDA furthermore offers the Capital Access DPA program to buyers utilizing one of the agency’s first mortgage products (Advantage Conventional or FHA).
The program offers a 30-year fixed-rate mortgage with no monthly payments and a 0% interest rate. According to the agency, there are income requirements to qualify, but they differ from those for a first mortgage and are often lower.
⮞ The minimum Capital Access DPA for conventional loan borrowers is $3,050, and the maximum is the greater of $3,050 or 3 percent of the home’s purchase price.
⮞ The lowest down payment for FHA borrowers is $3,050, and the maximum is the greater of $3,050 or 3.5% of the home’s purchase price.
More Wisconsin homebuyer assistance programs
Home-Buy the American Dream
The City of Madison offers the Home-Buy the American Dream down payment and closing cost assistance program, which pays between $1,000 and $20,000 in help with no interest or monthly payments, and is reimbursed when the home is sold or the original mortgage is refinanced.
At the time of repayment, the borrower will due the amount of assistance plus a share of appreciation.
Eligible borrowers must be purchasing a single-family house, condo, or one-half of a duplex in Madison or Dane County and be either first-time homebuyers (or haven’t owned a property in the past three years) or single parents with a child under the age of 18 in Madison or Dane County.
There are other conditions, such as the borrower’s compliance with the following:
⮞ Must hold a mortgage with a 30-year term
⮞ Must donate 1% towards the acquisition
⮞ Income requirements range from $54,950 for a one-person home to $103,650 for an eight-person household.
⮞ Liquid assets must not exceed a year’s worth of PITI payments after closure.
Section 32 Homeownership Program
The Section 32 Homeownership Program, offered by the Housing Authority of Milwaukee, supports low-income residents in purchasing a home from the authority’s inventory of rehabilitated properties. The prices of the homes are determined by a third-party appraiser.
First-time homebuyers who reside in public housing, have a low income (at or below 80% of the county’s median income), or receive rental assistance are eligible for this program.
A first-time buyer is defined as an individual who has not owned a house during the prior three years.
The program comprises the following requirements for borrowers:
⮞ Must contribute a minimum of 1 percent to the acquisition
⮞ Must occupy the home as their primary residence for at least five years
⮞ Attendance at HUD homeownership counseling is required
Through this program, it may be possible to receive a second mortgage that is forgiven, and there is no property tax for the year in which the home is purchased.
Additional lending Programs for first-time homebuyers
Now that you understand your alternatives as a first-time purchaser in Wisconsin, you may move forward.
The Wisconsin Housing and Economic Development Authority (WHEDA) maintains a network of community-based mortgage lenders and brokers to assist you in narrowing your options.
In addition to servicing its mortgages, the organization maintains a team of experienced loan advisors who provide direct customer support to clients.
No matter which Wisconsin first-time homebuyer loan you choose for your purchase, it is essential to look around for the best mortgage rates.
Compare loan offers thoroughly, including the annual percentage rate (APR) and expenses, to ensure that you’re receiving the greatest deal for your specific circumstances.
While examining Wisconsin’s first-time homebuyer programs, you should also investigate national programs that could assist you in achieving your goal of homeownership.
Visit the Housing and Urban Development website for other Wisconsin homeownership programs, organized by city.