Last updated: July 27, 2026 · Verified against WHEDA, HUD, FHA official data
Wisconsin First-Time Home Buyer Programs 2026: WHEDA Grants & Loans
WHEDA provides up to $22,000 in down payment assistance with 0% interest, no monthly payments, and full forgiveness after 6 years. Combined with an FHA loan, you can buy a Wisconsin home with virtually no money out of pocket. Here's everything you need to qualify and apply.
Max DPA
$22,000
Min Credit
640
DPA Interest
0%
Forgiveness
6 Years
⚠️ ATTENTION: NOT ALL LENDERS ARE APPROVED FOR WHEDA
Don't Waste Time with the Wrong Lender — Most Are Not WHEDA-Approved
The WHEDA program requires you to work with a WHEDA-approved participating lender. Using a lender that isn't certified means your $22,000 DPA grant disappears — even if you qualify. Match with a verified WI-approved lender right now:
| Lender | Best For | Min Credit | Est. Rate | DPA Eligible | Apply |
|---|---|---|---|---|---|
| BEST OVERALLRocket Mortgage | Fastest close (21 days) | 580 | 6.50% | ✓ Yes | Check Rates → |
| $0 FEESBetter.com | Lowest cost, $0 lender fees | 580 | 6.45% | ✓ Yes | Check Rates → |
| DPA SPECIALISTGuild Mortgage | DPA + rural WI programs | 580 | 6.55% | ✓ Yes | Check Rates → |
| COMPARE ALLLender Match (300+) | Compare all WI-approved lenders | 580 | From 6.25% | ✓ Yes | Check Rates → |
What Is the WHEDA Program?
WHEDA (Wisconsin Housing and Economic Development Authority) is a state agency created to provide affordable mortgage financing to first-time home buyers and low-to-moderate-income residents. Unlike conventional loans, WHEDA offers below-market interest rates, reduced mortgage insurance, and up to $22,000 in down payment assistance — all through a network of approved lenders across Wisconsin.
The program is designed for buyers who can afford a monthly mortgage payment but struggle to save for a down payment. With Wisconsin home prices averaging $375,000 statewide (and over $450,000 in Dane County), the $22,000 DPA grant is often the difference between renting and owning.
WHEDA works with FHA, VA, USDA, and conventional loan products. The DPA is a 0% interest second mortgage with no monthly payments — and it's fully forgiven after 6 years if you remain in the home. That's free money, plain and simple. Want to see if you qualify? Check your eligibility now.
WHEDA Down Payment Assistance: Up to $22,000
How the DPA Works
- Amount: Up to 6% of the purchase price, capped at $22,000
- Interest rate: 0% — no interest ever charged
- Monthly payments: $0 — no payments until you sell, refinance, or pay off the first mortgage
- Forgiveness schedule: 20% forgiven per year starting in Year 1. Fully forgiven after Year 6.
- Example: Buy a $350K home → receive $22,000 DPA. Stay 6 years → the entire $22,000 is forgiven. You never repay a penny.
DPA Forgiveness Timeline
| Year in Home | % Forgiven | Amount Forgiven (on $22K) | Remaining Balance |
|---|---|---|---|
| Year 1 | 20% | $4,400 | $17,600 |
| Year 2 | 40% | $8,800 | $13,200 |
| Year 3 | 60% | $13,200 | $8,800 |
| Year 4 | 80% | $17,600 | $4,400 |
| Year 5 | 100% | $22,000 | $0 (FREE) |
| Year 6+ | 100% | $22,000 | $0 (FREE) |
If you sell or refinance before Year 6, you repay the remaining DPA balance from the sale proceeds. There are no prepayment penalties.
WHEDA Income Limits by County (2026)
Income limits vary by county and household size. Check your county below:
| County | 1-2 Person Household | 3+ Person Household | Median Home Price |
|---|---|---|---|
| Dane (Madison) | $128,400 | $149,800 | $450,000 |
| Waukesha | $128,400 | $149,800 | $425,000 |
| Milwaukee | $112,400 | $131,100 | $325,000 |
| Brown (Green Bay) | $98,400 | $114,800 | $295,000 |
| Racine | $98,400 | $114,800 | $285,000 |
| Kenosha | $98,400 | $114,800 | $310,000 |
| Outagamie (Appleton) | $98,400 | $114,800 | $275,000 |
| Winnebago (Oshkosh) | $98,400 | $114,800 | $255,000 |
| La Crosse | $98,400 | $114,800 | $265,000 |
| Marathon (Wausau) | $98,400 | $114,800 | $245,000 |
Income limits are based on HUD AMI calculations and updated annually. Limits may be higher in targeted areas designated by WHEDA.
WHEDA Requirements: Do You Qualify?
✅ You Qualify If:
- • First-time home buyer (or haven't owned in 3 years)
- • Credit score 640+
- • DTI ratio below 45%
- • Income within county limits (see table above)
- • Complete HUD-approved homebuyer education course
- • Purchase price within WHEDA limits ($575K most areas)
- • Primary residence only (no investment properties)
❌ You Don't Qualify If:
- • Owned a home in the past 3 years (unless in targeted area)
- • Credit score below 640
- • DTI ratio above 45%
- • Income exceeds county limits
- • Buying a second home or investment property
- • Purchase price exceeds WHEDA limits
💡 Good news: The 3-year ownership rule is waived if you're buying in a targeted area (designated by WHEDA as needing revitalization). Many neighborhoods in Milwaukee, Racine, Beloit, and Green Bay qualify. Check if your target area qualifies →
How to Apply for WHEDA: Step-by-Step
Complete Homebuyer Education
Take a HUD-approved homebuyer education course online ($75-$125). WHEDA requires completion before applying. The course covers budgeting, credit, mortgage basics, and closing costs.
Get Pre-Approved with a WHEDA Lender
You MUST use a WHEDA-approved lender. Not all lenders are certified — using the wrong one means losing the $22K grant. Get matched with approved lenders here.
Get Pre-Approved Now →Find Your Home & Make an Offer
Once pre-approved, work with a real estate agent to find a home within WHEDA purchase price limits. Your pre-approval letter shows sellers you're serious.
Close & Receive Your DPA
At closing, the $22,000 DPA is wired as a second mortgage. You pay $0 down (in many cases), receive your keys, and the DPA begins its 6-year forgiveness countdown.
Wisconsin Cities: What $22K DPA Buys You
| City | Median Home Price | DPA ($22K = % Down) | Est. Monthly Payment | Income Needed |
|---|---|---|---|---|
| Madison | $450,000 | 4.9% | $2,640 | $90K+ |
| Milwaukee | $325,000 | 6.8% | $1,910 | $65K+ |
| Green Bay | $295,000 | 7.5% | $1,730 | $59K+ |
| Kenosha | $310,000 | 7.1% | $1,820 | $62K+ |
| Appleton | $275,000 | 8.0% | $1,610 | $55K+ |
| Racine | $285,000 | 7.7% | $1,670 | $57K+ |
| Eau Claire | $295,000 | 7.5% | $1,730 | $59K+ |
| Wausau | $245,000 | 9.0% | $1,440 | $49K+ |
Estimates based on 6.50% rate, 30-year FHA loan with 3.5% down + $22K WHEDA DPA. Actual costs vary by lender, taxes, and insurance.
Ready to Claim Your $22,000 WHEDA Grant?
Get pre-approved with a WHEDA-approved lender in 3 minutes. Soft pull, no credit impact, no obligation.
Frequently Asked Questions
What is the WHEDA first-time home buyer program?
WHEDA offers below-market-rate mortgages and up to $22,000 in down payment assistance (DPA) for first-time home buyers in Wisconsin. The DPA is a 0% interest second loan with no monthly payments — and it's fully forgiven after 6 years if you stay in the home. Check if you qualify for the $22K grant →
What are the WHEDA income limits for 2026?
Income limits vary by county. For 2026, most WI counties have limits around $98,400 (1-2 person) and $114,800 (3+ person). Higher-cost areas like Dane County (Madison) may go up to $128,400 (1-2 person) and $149,800 (3+ person). See our county table above for exact limits. Compare WI-approved lenders →
How much down payment assistance does WHEDA provide?
WHEDA provides DPA up to $22,000 (6% of purchase price) as a 0% interest, deferred second mortgage. It's forgiven at 20% per year starting in Year 1 and fully forgiven after 6 years — meaning if you stay 6 years, the entire $22,000 is free. Get your DPA pre-approval →
What credit score do I need for WHEDA?
Minimum 640 credit score for all loan types (conventional, FHA, VA, USDA). A score of 680+ may qualify you for better first mortgage rates. Maximum DTI ratio is 45%. Check your rate with a 640+ score →
Can I use WHEDA with FHA, VA, or USDA loans?
Yes. WHEDA pairs with FHA, VA, USDA, and conventional loans. FHA + WHEDA DPA is the most popular combination — 3.5% down requirement is easily covered by the $22K grant. Get FHA pre-approval with WHEDA DPA →