On the shores of Lakes Michigan and Superior, in the country' north-Central region is the state of Wisconsin. The state is most notably known for the Green Bay Packers and their accompanying Cheese Heads. But Wisconsin is more than just football; it is home to some 5.8 million residents sharing more than 65,000 mi.² of space. And although the harsh Wisconsin winters are not right for everyone, there are many first time home buyers looking to purchase in the state's major cities and small towns.
First time home buyers in Wisconsin have access to a fair number of programs that will help through down payment and closing cost assistance and low cost mortgages. Some of these programs are administered at the state level while others can be found in various towns and counties. First time home buyers in Wisconsin should check with a real estate agent, a mortgage lender, or the Wisconsin Housing and Economic Development Authority.
Wisconsin Housing and Economic Development Authority (WHEDA)
The WHEDA is an independent entity created by the Wisconsin State Legislature in 1972. As an independent agency it is not funded by tax dollars nor controlled by the state in any way. It is self-funded through the sale of revenue bonds on the open market. Currently the WHEDA has more than $3 billion in total assets which it uses in conjunction with participating lenders, real estate developers, non-profits, and local government agencies to help provide low-cost home buyer financing options.
Where loans and down payment assistance are concerned the agency works primarily with first time home buyers and low income individuals. Where real estate development is concerned, low-cost financing options are available to builders willing to assist in creating affordable housing. At this time the WHEDA lists both a low-cost mortgage loan and a down payment assistance program available to first time home buyers.
WHEDA Advantage Loan
The WHEDA Advantage Loan is a product specifically tailored for first time home buyers. It offers a low interest, fixed-rate 30-year mortgage that promises to maintain the same monthly payments throughout the life of the loan. For most borrowers, they will qualify with no more than $3000 required out-of-pocket. Under some circumstances, eligible borrowers may be able to receive additional assistance for down payment and closing costs. Finally, additional assistance of up to $10,000 may be available for first time home buyers to make repairs or upgrades.
There are income eligibility requirements as well as purchase price requirements attached to these loans. However, purchase price limits are fairly liberal when compared to what other states offer. With a WHEDA Advantage Loan some buyers may be eligible to purchase homes valued up to $235,000. Regardless of purchase price, all first time buyers will be required to complete a home ownership course offered by the state.
Easy Close Advantage
The Easy Close Advantage program is an additional option offered in conjunction with an Advantage Loan. This assistance comes by way of a secondary loan of up to $3,000 to be used to pay for closing costs or down payment. This assistance is a 10-year fixed-rate loan which is paid concurrently with the mortgage at a monthly rate of just $34. First time home buyers have immediate access to this secondary loan at the time of closing, mitigating the need for large amounts of cash from their personal savings. In order to be eligible for this closing cost assistance first time buyers must already qualify for an Advantage Loan, meet income eligibility guidelines, and have a sufficiently high credit score.
Additional Programs in the Wisconsin
First-time home buyers in Wisconsin have a decided advantage over many other states because of the large number of additional first time home buyer programs available at the local and county level. We have obtained a list of programs currently running from the HUD website. Keep in mind that HUD updates this list on a periodic basis and not all programs run throughout the year. Many of them are dependent upon funding and may be offered only on a limited basis.
- Beaver Dam MSA Professional Services Housing Rehabilitation Program (HRP)
- Clark County Down Payment and Closing Cost Loan (DPCC)
- Dodge County MSA Professional Services Home Purchaser Program (HPP)
- Douglas County Home Ownership Opportunity Program (HOOP)
- Eau Claire Down Payment Closing Cost Assistance Program (DCCAP)
- Green Bay NHS Inc Down Payment Assistance/Closing Cost Assistance Program
- Green County MSA Professional Services Home Purchaser Program (HPP)
- Janesville Down Payment & Closing Cost Assistance Program (DCCAP)
- Manitowoc County Hmong Mutual Assistance Association Housing Cost Reduction Initiative Program (HCRI)
- Milwaukee County Suburban First Time Homebuyers Program (FTHP)
- Milwaukee Neighborhood Housing Services, Inc Homeownership Consortium Reduction Initiative (HCRI)
- Northwest Wisconsin Home Purchase Program (HPP)
- Racine Homebuyer Down Payment Assistance Program (HDAP)
- Rock County Home Purchase Assistance (HPA)
- Rusk County Homestead Opportunity Program
- Sheboygan County Hmong Mutual Assistance Association Housing Cost Reduction Initiative Program (HCRI)
- Sheboygan Down Payment Assistance Program (DAP)
- Waukesha County HBC Services Inc Grant Program (GRANT)
- Wausau House Cost Initiative Program
- West Allis Homebuyers Loan Program
- Wisconsin Ho-Chunk Housing Authority Down Payment Assistance Grant Program (GRANT)