Down Payment and Closing Cost Assistance
View Down Payment Assistance Program Chart pdf.
Pick a County: Richland, Crawford, La Crosse, Vernon, Grant, Lafayette, Iowa, Green
Pick an income:
At or Below 80% County Median Income (CMI):
| Family Size | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Maximum Income | $30,750 | $35,100 | $39,500 | $43,900 | $47,400 | $50,900 | $54,450 | $57,950 |
More than above, and applying for a USDA - Rural Development Guaranteed Loan through your lender? Click here.
More than above, but less than 115% CMI:
| Family Size | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Maximum Income | $44,160 | $50,485 | $56,810 | $63135 | $68,195 | $73,255 | $78,315 | $83,375 |
NHS is currently averaging $9,000 for down payment assistance to qualified buyers who purchase pre-existing houses in Richland County.
See the payment comparison chart with down payment assistance vs. without down payment assistance.
NHS Home Ownership Program (HOP) assistance may be in the form of:
- Down Payment Assistance (amount of assistance based on need)
- Closing Cost Assistance
- Point of Purchase Rehab Assistance
When purchasing a home, LI households (see income limits) in Richland County can apply for assistance to help pay their down payment and closing costs. This program can be used to purchase one of NHS's new houses or an existing house within the limits of Richland County.
This assistance can be used in conjunction with:
- reputable lenders (who provide 1st mortgage financing - go to Links page)
- USDA Direct and Guaranteed Loans
- WHEDA loans
- Down Payment Plus Program
- Movin' Out, Inc down payment, closing cost, and rehab loans for persons with disabilities
- Community Development Block Grant (CDBG)
- And other sources
What NHS Expects from Applicants
NHS expects mortgage-ready clients to have:
- Income at or below 80% of Richland County Median Income (see income limits)
- good or repaired credit (credit counseling available)
- a modest existing debt load (not a lot of current monthly payments - budget counseling available)
- purchase a house/mobile home on land/condo within the limits of Richland County, WI
- And other program requirements which may also apply.
Overview
- Source of Funding
The NHS Home Ownership Program (HOP) funding comes from the Wisconsin Division of Housing HOME and HCRI funds. This HOME/HCRI money may be used to provide direct assistance for households at or below 80% of County Median Income (LI Households) for home purchase. See income limits.
The NHS HOME/HCRI Down Payment Assistance and Closing Cost funds will be secured by a second mortgage and the payment will be deferred at 0% interest until the home ceases to be the buyer's principal residence, is sold, or if the buyer wishes to refinance with a loan that is not approved by NHS (for instance a loan which is not equal to or better than the existing 1st mortgage). Households will make one payment to NHS for the exact amount borrowed. Typically, this payment would come from proceeds from the sale of the property.
Applicants are required to attend a homebuyer seminar (see seminar info) or to participate in personal homebuyer counseling with a HUD approved counselor such as those found at NHS.
Applicants are required to use between $500 and $1,000 of their own money - depending on income (the cost of the inspection, homeowners insurance, earnest money, and other expenses will all count toward this requirement).
Applicants are required to purchase property insurance adequate to cover all purchase and rehab costs and to name NHS of Richland County as an additional mortgage holder.
A $500.00 administrative fee is charged by NHS and can be paid out-of-pocket or (if the 1st mortgage allows) from the proceeds of the loan.
Between 81% and 115% CMI - New Home Purchase
Families whose incomes are between 81% and 115% CMI may apply for down payment assistance to purchase a new NHS house (see new construction).
Between 81% and 115% CMI - MIHOP
Families whose incomes are between 81% and 115% CMI may apply for NHS's Moderate Income Home Ownership Program (MIHOP) to purchase either a new NHS house or an existing house within the limits of Richland County.
NHS MIHOP assistance may be in the form of:
- Down Payment Assistance
- Closing Cost Assistance
This assistance can be used in conjunction with:
- reputable lenders (who provide 1st mortgage financing - go to Links page)
- WHEDA loans
- And other sources
What NHS Expects from MIHOP Applicants
NHS expects mortgage-ready MIHOP clients to have:
- Income between 81% and 115 % of Richland County Median Income (see income limits)
- good or repaired credit (credit counseling available)
- a modest existing debt load (not a lot of current monthly payments - budget counseling available)
- purchase a house/mobile home on land/condo within the limits of Richland County, WI
- Combined loan to value ratio at or below 105% (Sum of all liens on the property must not exceed 105% of appraised value).
- And other program requirements which may also apply.
Other Points of Interest:
The NHS MIHOP Down Payment Assistance and Closing Cost funds will be secured by a second mortgage and the payment will be deferred at 0% interest until the home ceases to be the buyer's principal residence, is sold, or if the buyer wishes to refinance with a loan that is not approved by NHS (for instance a loan which is not equal to or better than the existing 1st mortgage). Households will make one payment to NHS for the exact amount borrowed. Typically, this payment would come from proceeds from the sale of the property.
Applicants will be required to spend at-least $500.00 of their own money toward purchase (cost of homeowners insurance premium, earnest money, inspection fee, appraisal fee, administrative fee, or any other closing costs paid out-of -pocket will count toward this requirement).
Applicants are required to attend a homebuyer education seminar (see seminar info) or to participate in personal homebuyer counseling with a HUD approved counselor - such as those found at NHS.
Applicants are required to purchase property insurance adequate to cover all purchase and rehab costs and to name NHS of Richland County as an additional mortgage holder.
A $500.00 administrative fee is charged by NHS and can be paid out-of-pocket or (if the 1st mortgage allows) from the proceeds of the loan.
All properties purchased with MIHOP funds must pass an inspection conducted by the appraiser (this inspection will be the same as the inspection which is required by the USDA - Rural Development - Rural Housing Guaranteed Loan Program). Health, Safety, and Code violation issues (HQS) will need to be addressed by the seller or with a lender-provided rehab loan at the time of closing.
Families who wish to purchase housing in one of these counties and who are also applying for a USDA - Rural Development Direct or Guaranteed Loan can apply to NHS for the Pilot Implementation Program. For more information, contact Linda Smith.
Families who wish to purchase housing in one of these counties and who are also applying for a USDA - Rural Development Direct or Guaranteed Loan and whose incomes are below 80% CMI can apply to NHS for the Pilot HCRI Loan Program. For more information, contact Linda Smith.
visitors since 11/01/04