Answers to Your Financing Questions
What is considered low- to moderate-income in Dane County?
Several area non-profits specialize in assisting low-to-moderate income homebuyers to secure affordable housing in Dane County. HUD defines the low-to-moderate income as a household’s annual gross income at or below 80% County Median Income. As of 2019, the income levels are
Do you need down payment assistance?
Use the Down Payment Assistance search tool to find programs that meet your needs. Note that not all programs can be used together.
See MATRIX for more information. 2022 DPA Matrix
Area nonprofits coupled with City of Madison and Dane County jointly offer a wealth of down payment assistance programs to finance your new home. Here are some of the programs available to low-to-moderate income families.
Home Buy the American Dream
This program provides down payment and closing cost assistance to low-to-moderate income* homebuyers who purchase homes in Dane County. The City of Madison provides a mortgage loan of up to $20,000 for properties in the City of Madison and up to $5,000 in Dane County, outside the City. This loan has no monthly payments for eligible buyers. The loan, including shared appreciation, will become due and payable at sale, when the property is no longer owner-occupied, or the first mortgage is refinanced for cash-out purposes not related to home improvement.
This program provides mortgage reduction assistance to low-to-moderate income* homebuyers who purchase in the Dane County Urban County Consortium. The house must be located in a participating municipality outside the City of Madison. Momentum provides a deferred mortgage loan of up to $12,000 at 0% interest with no monthly payments to eligible homebuyers. The current purchase price limit is $290,000. The loan becomes due and payable at sale, when the property is no longer owner-occupied or the first mortgage is refinanced for cash-out. Borrowers should apply to reserve these funds at the time of pre-approval.
Down Payment Plus Program (DPP)
DPP provides down payment and closing cost assistance to low-to-moderate income* homebuyers throughout Wisconsin and Illinois. The first mortgage must be through a Federal Home Loan Bank of Chicago member. Assistance comes in a 0% loan which is forgiven over a five-year period. The maximum loan amount is the lesser of $6,000 or three times the homebuyer’s net contribution. Buyers may use up to $500 of the loan amount for homebuyer education and counseling fees. No payments required.
This program provides down payment and closing cost assistance to low-to-moderate income* homebuyers throughout South Central Wisconsin through the REALTORS® Association of South Central Wisconsin’s Housing Foundation. The maximum loan amount is $4,000 or 3% of the purchase price, whichever is lower. No payments are required. Approximately 1.875% interest per year accumulates. Funding is limited. Please call (608) 258-5560 x32 or email firstname.lastname@example.org
Movin’ Out provides down payment and closing costs assistance programs for low-to-moderate income* households where at least one household member has a permanent disability. This does NOT include disabilities because of the aging process. Borrower should contact Movin’ Out to reserve funds even before pre-approval. The maximum purchase price limit is $290,000.
WHEDA Easy Close
Assistance to first-time home buyers who have a WHEDA first mortgage. Buyers may use the funds for a down payment, closing costs and home buyer education expenses. The minimum loan is $1,000 or up to 6% of purchase price for both Conventional and FHA. The loan term is 10 years with monthly payments, which include interest. Easy Close income limits do NOT adhere to the above income guidelines. See: www.wheda.com.
WHEDA Capital Access Advantage
WHEDA Capital Access Advantage assists first-time home buyers who have a WHEDA first mortgage. Buyers may use funds for down payment, closing costs and homebuyer education expenses. No payments required; 0% interest. Loan is payable as the first mortgage is paid off. The minimum loan amount is $3,050. Conventional—Greater of 3% or $3,050. FHA—Greater of 3.5% or $3,050. See: www.wheda.com.
What Other Affordable Housing Options Exist?