MADISON, WI — Yesterday Senator Dora Drake and Representative Kalan Haywood proudly announced the introduction of the “First-Time Homebuyers Act,” a groundbreaking bill designed to make homeownership more accessible for Wisconsin residents. This legislation establishes a loan fund managed by the Wisconsin Housing and Economic Development Authority (WHEDA), offering interest-free loans to first-time homebuyers and those who have lost homes to foreclosure.
“Owning a home is a cornerstone of the American Dream, but for many hardworking Wisconsinites, that dream has become unaffordable” said Senator Drake. “This bill provides the financial support needed to help families overcome the barriers to homeownership.”
The First-Time Homebuyers Act will cover essential expenses such as closing costs, down payments, mortgage insurance, interest rate buy-downs, and principal reduction. The loan amount is capped at $35,000 or 10% of the home’s purchase price, whichever is lower, with WHEDA retaining the flexibility to adjust this cap based on market conditions.
Eligibility criteria include:
- First-time homebuyer status or having experienced a foreclosure.
- Household income at or below 100% of the area’s median income.
- Completion of a homebuyer education course.
- Commitment to occupy the home as a primary residence.
- Purchase within Federal Housing Administration loan limits.
- A minimum personal contribution of $1,000 towards the purchase.
- Financing through a WHEDA-administered first mortgage program.
Loan forgiveness is structured incrementally, with up to 50% forgiven after 10 years of continuous occupancy. In cases of financial hardship, WHEDA has the discretion to forgive the loan entirely.
“This legislation is not just about financial assistance; it’s about building communities and giving families the stability they deserve,” added Rep. Haywood. “We’re committed to making Wisconsin a place where everyone has the opportunity to own a home.”
