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Home
Program
The HOME Program is a
Federal program designed to expand the supply of affordable housing for
low-income families. To accomplish this objective the Federal Government
through the HOME Program has given grants to States and local governments.
The State of Wisconsin is a recipient of a HOME Program grant. The State has
contracted with Renewal Unlimited, Inc. to implement the grant in Columbia,
Sauk, Juneau, and Adams counties. Renewal Unlimited does this through its
Homebuyer Program.
Renewal Unlimited, Inc. Homebuyer Program is designed to expand the
availability of affordable housing while complying with Federal and State
regulatory requirements. This is accomplished by providing financing for
low-income households which is used for the acquisition, rehabilitation, or
new construction of single family homes. A deferred payment second mortgage
is the method by which the financing is provided. The mortgage accrues no
interest and there are no scheduled payments. The cash from the 2nd mortgage
can be used for down payment in the acquisition and/or construction of a
home. It can also be used for the rehabilitation of an existing home. The
2nd mortgage is due in full when the property purchased and/or rehabilitated
is sold.
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 equal to or less than 30% of the home 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 purchasing transaction that does not have a fixed rate 1st mortgage.
The Homebuyer Program also provides closing cost assistance through the
Housing Cost Reduction Initiative (HCRI) program or the Housing Organization
and Direct Assistance Program (HODAP). Closing cost assistance is
provided as a grant with no lien or repayment requirements.
Home
2nd Mortgage Program
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The Home Program is a housing
assistance program for low to moderate income households. |
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The assistance is provided
through a 2nd mortgage, the funds from which can be used as down payment. |
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The second mortgage amount is
limited to 10% of the purchase price of the home being bought. |
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For those whose income is
less than 50% of the county median income, the mortgage amount limit is
15% of the purchase price of the home. |
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The second mortgage is
provided as a 0% interest loan with payment deferred until the sale of the
home. |
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To obtain a Home Program 2nd
Mortgage, home buyers must contribute $250 up to $1000 in cash, towards
the purchase of their home. The amount to be contributed will depend on
income. |
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Homes that qualify for a 2nd
Mortgage can be stick built, modular, manufactured or condominium on a
permanent foundation. A home on a rented or leased lot does not qualify. |
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An inspection is required of
the home being purchased with the 2nd mortgage. The inspection is made by
Renewal Unlimited, Inc. to assure that the home meets HUD Housing Quality
Standards. |
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The 2nd mortgage may be
re-subordinated to accommodate refinancing. Refinancing must be limited to
the amount due on the 1st mortgage unless funds over the amount due are
used for home improvement. |
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A homebuyer education
class and counseling will be provided for those who are eligible and
participate in the Homebuyer Program. |
Housing
Cost Reduction Initiative Program (HCRI) and the Housing Organization and
Direct Assistance Program (HODAP)
Income eligible households can
receive up to $2,500 for closing costs assistance, which is provided as a
grant with no lien or repayment requirements. Closing costs assistance can
be provided in conjunction with the 2nd mortgage.
Homebuyer
Rehabilitation Program
This program is for households that have owned
their home for less than 2 years. The program provides home repair
assistance for homes not meeting HUD Housing Quality Standards. Assistance
is provided as a 0% interest loan with payment deferred until the sale of
the home.
If you have any
questions regarding the Homebuyer Program please contact
Tami Mueller at (608) 742-5329
Or
(800) 344-7543 Monday-Friday 8:00 a.m.-4:30 p.m.
Those who wish to apply
for a 2nd mortgage and/or closing costs assistance should call for an
appointment. |
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HOME Homebuyer Program
A Program to Assist Low to Moderate Income Families
with the Purchase and /or rehabilitation of a home.
Serving Adams, Columbia, Juneau, and Sauk Counties. |
