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Whether you’re looking for a home in Madison, Milwaukee, Kenosha, Racine, Green Bay or anywhere else in The Badger State, begin with the Wisconsin Housing and Economic Development Authority, which helps residents, including first-time homebuyers, secure affordable housing. Some of the larger municipalities in the state also offer homebuying assistance.
Wisconsin first-time homebuyer programs
WHEDA Advantage Conventional and FHA loans
The Wisconsin Housing and Economic Development Authority (WHEDA) offers a 30-year fixed-rate conventional loan — called Advantage Conventional — or a 30-year fixed-rate FHA loan — known as Advantage FHA — that can be used in tandem with the agency’s down payment assistance programs. These loan programs are open to first-time homebuyers, although that’s not a requirement.
The agency also offers a conventional HomeStyle Renovation loan for those who want to buy and fix up a home with one mortgage, which includes financing for the purchase price of the home, the renovation and up to six months’ of mortgage payments.
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For Advantage Conventional:
- Must buy a single-family home, condominium, townhome, manufactured home (double-wide) or two- to four-unit home in Wisconsin
- Must buy a property within conventional loan limits and purchase price limits, the latter of which vary based on location and property type
- Must use the home as a primary residence
- 620 minimum credit score
- Income within WHEDA limits, which vary based on location and property type
- Completion of a homebuyer education course (or landlord education course if buying a two- to four-unit home)
For Advantage FHA:
- Must buy a single-family home, an FHA-approved condominium or two-unit home in Wisconsin
- Must buy a property within FHA loan limits, which vary based on location and property type
- Must use the home as a primary residence
- 640 minimum credit score
- Income within WHEDA limits, which vary based on location and property type
- Completion of a homebuyer education course (or landlord education course if buying a two-unit home)
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Pros
- Open to first-time and repeat buyers
- Open to condos
- Open to multifamily properties
- More affordable interest rate if buying in designated rural areas
- More than 160 participating lenders
Cons
- 3% down payment and six months’ reserves required for Advantage Conventionnal loan if buying a two- to four-unit home
- Limited property types for Advantage FHA loan
Wisconsin down payment assistance and grants
WHEDA Easy Close Advantage down payment assistance
In conjunction with its Advantage Conventional and FHA loans, WHEDA offers the Easy Close down payment assistance (DPA) program, which provides a minimum of $1,000 and a maximum of 6 percent of the home’s purchase price (or appraised value, whichever is less) in assistance.
This assistance is packaged as a 10-year fixed-rate mortgage with a monthly payment and the same interest rate as the first mortgage. It’s available to both first-time and repeat homebuyers who qualify for the first mortgage, and there is no additional application process.
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Pros
- Can be used for the down payment, closing costs, prepaid expenses and more
Cons
- Requires repayment on a monthly basis
WHEDA Capital Access down payment assistance
WHEDA also offers the Capital Access DPA program for buyers using either of the agency’s first mortgage programs (Advantage Conventional or FHA). The program offers $7,500 in assistance in a 30-year fixed-rate mortgage with no interest and no monthly payments. There are income limits to qualify, but they’re different from the first mortgage requirements and typically lower, according to the agency.
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Pros
- Can be used for the down payment, closing costs, prepaid expenses and more
- No interest
- Repayment deferred until you sell the home
- Closing costs limited to a $30 recording fee
Cons
- Additional income and purchase price limits
Homebuyer assistance programs in Wisconsin cities
Home-Buy the American Dream
The City of Madison offers the Home-Buy the American Dream down payment and closing cost assistance program, which provides anywhere from $1,000 to $35,000 in assistance with no interest or monthly payments, repaid by the borrower when the home is sold or the first mortgage is refinanced. When it comes time to repay, the borrower will owe the assistance amount plus a portion of appreciation.
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- Must be a first-time homebuyer or single parent with a dependent minor
- Must buy a single-family home, condominium or one-half of a two-unit home in Madison
- Income within program limits, which vary based on household size
- Completion of a homebuyer education course
- Must have a 30-year first mortgage
- Must contribute 1% to the purchase
Milwaukee Home Down Payment Assistance
The City of Milwaukee offers first-time homebuyers forgivable down payment assistance grants of up to $5,000 (or up to $7,000 if purchasing in a specially designated area — check eligibility on the MyMilwaukeeHome website). These funds can be used towards both the down payment and closing costs.
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- Must currently be a resident of Milwaukee
- Must use the home as a primary residence and live there for at least five years
- Income within program limits, which vary based on household size
- Completion of a homebuyer education course
- Must contribute $1,000 to the purchase
Get started
Now that you know some options available to first-time homebuyers in Wisconsin, your next steps might include:
- Learn more about the Wisconsin housing market. From typical home prices to average selling times, we’ve compiled everything you need to know about housing the state here.
- Work on or maintain your credit score. It’s the most important factor in determining your mortgage rate. Here are our top tips.
- Compare lenders and Wisconsin mortgage rates. WHEDA has a network of mortgage lenders and brokers to help you narrow down your choices. The agency also services its mortgages, and employs a team of professional loan advisors who work directly with borrowers. Regardless of which program you choose, it’s important to shop around for mortgage offers. Interest rates are always changing, so if you find a rate that’s especially competitive, be sure to lock it in.
- Look at lender reviews. We’ve reviewed dozens of lenders in areas like affordability and borrower experience. Explore our reviews here.
- Think about homeowners insurance. You can’t get a mortgage without a homeowners policy. Compare insurance providers in Wisconsin here.
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