HOME Homebuyer Program

 

The HOME Homebuyer Program is designed to assist low to moderate income families with the purchase and/or rehabilitation of a home. Renewal Unlimited, Inc. provides assistance in the form a 0%, deferred loan as a second mortgage to be used for down payment and closing costs associated with the purchase. A homebuyer’s household income must fall below 80% of the County Median Income in order to be eligible for the program. Homebuyers must not have owned a home within a three year period. The homebuyer must also make a contribution to their purchase between $250.00 and $1,000.00 depending on their income. Homebuyer Counseling is also provided for all Homebuyer Program applicants using a one-on-one approach with each household looking for assistance. Counseling will address home buying issues including affordability, refinancing and budgeting.

Quick facts about second mortgages through the HOME Homebuyer Program at Renewal Unlimited:

  • The Renewal Unlimited Homebuyer Program provides money through a 2nd Mortgage for down payment and closing costs for low income home buyers.
  • The homebuyer’s household income must be at or below 80% of County Median Income (CMI) to be eligible for the 2nd Mortgage.
  • Homebuyers whose income is 51-80% of CMI are eligible for a 2nd mortgage in an amount equal to 10% of the purchase price of the home plus $1000 for closing costs.
  • Homebuyers whose income is 50% CMI or less are eligible for a 2nd mortgage equal to $18,000 and $1,000 toward closing costs.
  • The maximum amount allowed for a 2nd mortgage through the Homebuyer Program is $18,000.
  • The homebuyer must make a cash contribution towards the purchase of their home.
  • Those whose income is 30% or less of the CMI must contribute $250 towards the purchase of their home. Those whose income is 31-50% of the CMI are required to contribute $500. Those whose income is 51-80% of the CMI are required to contribute $1000.
  • Homes that qualify for a 2nd mortgage can be stick built, modular, new manufactured or condominium on a permanent foundation. A home on a rented or leased lot does not qualify.
  • An inspection is required of the home being purchased with the 2nd Mortgage. The inspection can be  made by Renewal Unlimited, Inc. to assure that the home meets HUD Housing Quality Standards.
  • The 2nd Mortgage may be re-subordinated to accommodate refinancing. Refinancing must be limited to the amount due on the 1st Mortgage and closing costs unless funds over that amount are used for an approved home improvement.

Affordability

The Renewal Unlimited, Inc. Homebuyer Program is committed to helping eligible families purchase an affordable home. An affordable home is defined as a home with a house payment (PITI) equal to or less than 30% of the buyer’s gross monthly income and total monthly payments equal to or less than 40% of gross monthly income.

To increase the probability that a house payment will remain affordable, the 1st mortgage used to purchase a home must be a fixed rate mortgage. Renewal Unlimited, Inc. will not provide a 2nd mortgage for a house purchase transaction that does not have a fixed rate mortgage.

The regulations, guidelines and information provided here are from the State of Wisconsin, Department of Administration and Renewal Unlimited, Inc. Information, regulations and guidelines may change and will be updated as necessary.

Adams30% County Median Income50% County Median Income80% County Median Income
1124502070033150
2142002365037850
3160002660042600
4177502955047300
5192003195051100

Columbia30% County Median Income50% County Median Income80% County Median Income
1145502420038750
2166002765044250
3187003110049800
4207503455055300
5224503735059750

Dodge30% County Median Income50% County Median Income80% County Median Income
1138002300036800
2158002630042050
3178502960047300
4197003285052550
5213003550056800

Juneau30% County Median Income50% County Median Income80% County Median Income
1124502070033150
2142002365037850
3160002660042600
4177502955047300
5192003195051100

Sauk30% County Median Income50% County Median Income80% County Median Income
1135002245035950
2154002565041050
3173502885046200
4192503250551300
5208003465055450

For household sizes larger than 5 members please contact the office.

Contact the Director of Housing Services…

Director of Housing Services
Renewal Unlimited, Inc.
2900 Red Fox Run
Portage, WI 53901
608-742-5329 ext. 42
The information provided here does not reflect a complete description of programs or eligibility requirements. Guidelines for eligibility may vary by grant and by year. Please contact the program administrator for complete details.