WisconsinWisconsin would offer eligible home buyers interest-free loans for purchases
The failed proposal would let the Wisconsin Housing and Economic Development Authority offer eligible home buyers interest-free purchase loans, depending on available money.
What it does
If money is available, eligible buyers could receive interest-free loans, normally capped at $35,000 or 10% of the home price, whichever is less. Single-family purchases would get priority when money runs short.
Buyers who never owned a home or lost one to foreclosure could qualify with household income at or below the county median, adjusted for family size. They would also need training and WHEDA financing.
Borrowers would have portions of their debt canceled over time. Selling, moving out, or breaking loan rules would make the unpaid balance due, though WHEDA could grant hardship relief.
Argument forIf money is available, interest-free loans could help eligible buyers cover purchase costs without paying interest on that assistance.
Argument againstMaking the unpaid loan balance due when borrowers sell or move out could make it harder for them to relocate.
More detail
The Wisconsin Housing and Economic Development Authority (WHEDA) would run a program offering interest-free loans for home purchase costs. Loans could cover costs such as down payments and closing costs. Eligible homes could have up to four units or be manufactured or mobile homes. Loans would depend on available fund money and WHEDA's approval. The fund would receive state money and loan repayments. WHEDA could adjust the loan limit for market conditions and delay payments. When money cannot cover all acceptable applications, WHEDA would give priority to single-family home purchases.
Buyers would have to meet income, homeownership, education, and financing rules to qualify. Buyers must have never owned a home or have lost one to foreclosure. The income limit would use the county's median family income, adjusted for family size. Buyers would need to finish a WHEDA-approved home buyer course and agree to live in the home as their main residence. They would need to agree to use a WHEDA first mortgage and contribute at least $1,000 toward the down payment or closing costs. They would need to agree to a purchase price within the Federal Housing Administration's loan limit for the county. The income limit would apply when the buyer receives the loan.
WHEDA would cancel portions of borrowers' loans at scheduled milestones. These rules would apply to people receiving purchase assistance loans. Selling, moving out, refinancing in a way WHEDA disallows, or otherwise breaking the loan agreement would make the entire unpaid loan balance due. WHEDA could forgive the amount due for financial or personal hardship. WHEDA would cancel 12.5% of the original loan at 2.5 years, 25% at five years, 37.5% at 7.5 years, and 50% at ten years after the loan is provided. Each cancellation would be capped at the remaining balance.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 7Fiscal estimate receivedLatest
- Mar 23Failed to pass pursuant to Senate Joint Resolution 1Major
- Mar 19Read first time and referred to Committee on Insurance, Housing, Rural Issues and ForestryMinor
- Mar 19Introduced by Senators Drake, Spreitzer, Smith, Wirch, Roys, Hesselbein, Larson and Keyeski; cosponsored by Representatives Haywood, Bare, Prado, Sinicki, DeSmidt, Stubbs, Doyle, Neubauer, Goodwin, Joers, Taylor, Kirsch, Sheehan, Mayadev, Snodgrass, Subeck, Moore Omokunde, Arney, Emerson, Miresse, Palmeri, Madison, Fitzgerald, Roe, Hysell, Brown, Clancy, Udell, Tenorio, Andraca and ViningIntroduced
Housing