Down Payment and Closing Cost Assistance Loans

NHS of Southwest Wisconsin has funding available to provide eligible households with the down payment and closing costs to help make the mortgage payment affordable.

Who is eligible?

  • Funding is available for households determined to be at or below 80% of the Area Median Income.
    • We use your current income and project it forward and include all sources of income from all people who will be living in the home.
  • Credit history must be good or repaired; there is no minimum credit score
  • Must be able to secure a fair and affordable first mortgage
  • Must be able to contribute at least $1,000 of own funds to the purchase

How much money am I eligible for?

The amount of the loan is determined by several factors:

  • What your lender requires for down payment and closing costs
  • What may be needed to make your payment affordable
  • What may be needed to make required repairs before moving into your new home
  • Maximum amounts are affected by funds available

What are the Property Guidelines?

  • Homes to be purchased must be located in Richland County or the municipalities of Woodman, Boscobel, Muscoda, Blue River, Avoca or Arena
  • Properties in the flood plain or with excess acreage are not eligible
  • Maximum value of an existing home in Richland and Grant Counties is $143,000
    Maximum value of an exiting home in Iowa County is $145,000
  • The property must be inspected by a state certified housing inspector to determine if it is in need of improvements to meet housing quality standards.    Some properties may not warrant the investment of funds and be deemed ineligible by NHS for assistance
  • Other guidelines can be discussed in your counseling session

What are the terms and conditions of the loan?

  • Loans are mortgages on your property
  • Are 0% deferred – no payments or interest accrues
  • Are repayable if home is no longer your primary residence, at sale, or refinance
  • Refinances may be eligible for a loan subordination
  • Loans are given final approval by the NHS Loan Committee

Get started on an application for funds:

  • If you have not done so already, fill out the Homeownership Consultation Application and set up an appointment with an NHS advisor
  • Take homebuyer education at an NHS seminar or on-line.  Must be completed before closing
  • Fill out a Down Payment Application after you have received a pre-approval letter from NHS and have an accepted offer to purchase

Home Ownership Brochure

Homebuyer – How to Apply Page

Home Ownership Done Right Page

 

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NHS of Southwest Wisconsin is a NeighborWorks America HomeOwnership Center.   Counselors receive extensive training at the NeighborWorks’ National Training Institutes in order to provide clients with the most up-to-date and effective information on all areas of homeownership.

NHS of Southwest WI is an official adopter of the National Industry Standards for Homeownership Education and Counseling and Code of Ethics.

NHS of Southwest Wisconsin is a HUD approved counseling agency.