First-Time Home Buyer Programs in Wisconsin

Wisconsin Housing and Economic Development Authority (WHEDA) Programs:

WHEDA Advantage:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas; veterans exempt from first-time requirement.
Offerings: Provides a 30-year fixed-rate mortgage (FHA or conventional) with competitive rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $121,300 for a 1-2 person household in Dane County as of 2025).
• Minimum credit score of 620 (640 for conventional loans).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $349,525 (non-targeted areas) or $427,198 (targeted areas).

WHEDA Down Payment Assistance (DPA):

Benefits: Offers up to $10,000 or 6% of the purchase price (whichever is less) as a second loan (3.5% interest, repayable over 10 years) for down payment and closing costs; available with WHEDA Advantage.
Eligibility: Must use a WHEDA first mortgage; income and purchase price limits apply (same as WHEDA Advantage).

Capital Access Advantage:

Description: Provides up to 3% of the purchase price as a 0% interest second loan (repayable upon sale or refinance) for down payment; targets low-income first-time buyers with limited savings.
Requirements: Income capped at 80% AMI (e.g., $74,000 in Milwaukee County for a family of four); must pair with a WHEDA mortgage; credit score of 620.

Local Programs:

Milwaukee

Milwaukee Down Payment Assistance: Offers up to $15,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income must be at or below 80% AMI (e.g., $74,000 for a family of four).

Madison

Madison Home-Buy Program: Provides up to $20,000 as a deferred loan (0% interest, due upon sale or refinance) for down payment and closing costs; income capped at 80% AMI; targets revitalization areas.

Green Bay

Green Bay First-Time Homebuyer Program: Offers up to $10,000 as a 0% interest deferred loan (repayable upon sale) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 20% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with WHEDA loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Wisconsin areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.