First-Time Homebuyer Programs in Wisconsin

The down payment on a new home is often the biggest hurdle for first-time homebuyers. In Wisconsin, with an average home value of $306,557, a 20% down payment of $61,311 is needed to avoid buying private mortgage insurance.

Fortunately, there are first-time homebuyer programs available in Wisconsin to help you achieve homeownership. There are also mortgages that allow first-time homebuyers to put less down on a home, but these usually have income requirements and require mortgage insurance. MoneyGeek explores several state-specific and government-backed first-time homebuyer programs for people from different financial backgrounds.

Wisconsin offers grants and loans to help first-time homebuyers cover both down payment and closing costs. Below, we have compiled the first-time homebuyer programs offered by the Wisconsin Housing and Economic Development Authority to help you find the best option for your particular needs and situation.

The WHEDA Advantage Conventional program offers 30-year, fixed-rate mortgages with flexible down payment options, designed to assist Wisconsin residents in purchasing single-family homes, condos or multi-unit properties. This program requires a minimum credit score of 620 and is compatible with WHEDA’s down payment assistance options. Borrowers must meet household income limits and can use the loan to purchase and refinance WHEDA loans.

The WHEDA Advantage FHA program provides a fixed-rate, 30-year mortgage for homebuyers in Wisconsin, featuring FHA-backed benefits like lower down payment requirements (as low as 3.5%) and flexible credit qualifications with a minimum score of 640. The program applies to single-family homes, condos and 2-unit properties and is compatible with WHEDA’s down payment assistance options, making it accessible for buyers needing extra financial support.

The WHEDA Easy Close Advantage DPA provides down payment assistance as a second mortgage to qualified homebuyers using WHEDA first mortgages. The program offers up to 6% of the home’s purchase price, with a minimum loan amount of $1,000. This second mortgage has a 10-year fixed-rate term, and the interest rate matches that of the first mortgage, supporting affordable monthly payments. Available for FHA and conventional loans, the program helps buyers bridge financial gaps effectively.

The WHEDA Capital Access DPA offers $7,500 in down payment assistance for eligible Wisconsin homebuyers. This assistance loan is structured as a 30-year second mortgage with a 0% interest rate, requiring no monthly payments. The loan becomes due upon the sale, refinancing or maturity of the primary mortgage. It can be paired with WHEDA’s Advantage loans, providing more flexible and affordable homeownership options.

Aside from statewide first-time homebuyer programs in Wisconsin, there are also city-specific programs available to help you pursue homeownership in a city of your choosing. Check out the table below for some of the cities in Wisconsin that provide first-time homebuyer programs for potential residents.

In Wisconsin, there are zero-down-payment loan programs that allow you to purchase a home without putting money down. USDA and VA loans are two government-backed options that come with no down payment.

USDA loans are designed to assist eligible homebuyers in rural areas. They are issued by the U.S. Department of Agriculture through its Rural Development Guaranteed Housing Loan program.

USDA loans offer several benefits, including low interest rates and zero down payments. They are intended to make homeownership more accessible for those who might not qualify for conventional financing. The program also provides flexible credit guidelines to help more families achieve homeownership.

To qualify for USDA loans, the property must be located in a rural area with a population of less than 35,000 and must not exceed 2,000 square feet. Additionally, applicants must meet income limits specific to their area. For instance, in Bayfield County, Winconsin, the income limit for a four-person, low-income household is $69,300, whereas in Dunn County, Winconsin, it is $75,500.

VA loans are a specialized mortgage option issued by the U.S. Department of Veterans Affairs, designed to help veterans, active-duty service members and eligible surviving spouses become homeowners.

VA loans offer several advantages, including the absence of a down payment requirement. They also do not require private mortgage insurance (PMI), which can save borrowers a significant amount of money over the life of the loan. Additionally, VA loans come with lower interest rates compared to private loans. As of November 2024, the APR for a 15-year fixed-rate VA loan in Wisconsin is 6.28%, while a 30-year fixed-rate option stands at 6.26%.

To be eligible for a VA loan, you must meet specific requirements related to your length of service or service commitment, duty status and character of service. You must also meet certain income limits depending on where you live and provide a valid certificate of eligibility (COE).

First-time homebuyers in Wisconsin can take advantage of low-down-payment loan programs that allow them to finance their home with a down payment of 3.5% or less. These programs include conventional, FHA and FHA 203(k) loans.

FHA loans and conventional loans are the two most common types of mortgages. FHA loans require a minimum down payment of 3.5%, making them accessible for buyers with limited savings. Conventional loans can require as low as a 3% down payment for first-time homebuyers but generally have stricter credit score and debt-to-income ratio requirements than FHA loans.

Interest rates are another important factor to consider. As of November 2024, the current APR for a 15-year fixed-rate conforming loan in Wisconsin is 6.12%, whereas the APR for a 15-year fixed-rate FHA loan is 8.10%. APRs on FHA loans can be higher because there tend to be more fees and extra costs associated with borrowing money on government-backed loans.

Use our FHA vs. conventional loan calculator to help you compare FHA and conventional mortgage programs and find the best option for you.

We have addressed frequently asked questions about first-time homebuyer programs in Wisconsin to help you find the best option and move closer to homeownership.

Explore additional MoneyGeek resources for first-time homebuyers in Wisconsin to help you with the homebuying process.