Homeownership

closing day on the house with proud new owners standing outside.

IndependenceFirst provides assistance to persons with disabilities who have a goal of homeownership. This includes homebuyer education counseling, teaching money management skills, conducting benefits counseling and providing referrals for credit counseling agencies. Currently, we also have forgivable loans available for qualified households that include a member with a disability. The forgivable loan is for first-time homebuyers only and can be used for down-payment, closing costs, and/or accessibility modifications. Staff will also assist homebuyers to identify other sources of home purchase assistance and/or other appropriate resources in the community. A peer support group of homebuyers who have completed their purchase through IndependenceFirst meets on a quarterly basis to assist with post-purchase support.

To increase the number of persons with a disability that are qualified homeowners in the community.

Goals

  • To encourage the integration of people with disabilities into the community.
  • To increase the homeownership rate of people with disabilities.
  • To increase the assets of persons with disabilities.
Contact Information

Staff Name: Mia Lott-Rogers
Title: Home Ownership Specialist
Phone: 414-226-8339 (V/Relay), 414-291-7520 (V/TTY)
E-mail: Mia Lott-Rogers

Program Availability

Homeownership services are available on a first-come, first-served basis in Milwaukee, Ozaukee, Washington, and Waukesha Counties. The downpayment assistance is available statewide via the local independent living center.

Q&A

Who is this program for?

Low-income households that has a member with a disability. The person with a disability can be the homebuyer, a child, or another family member.

Type of Assistance/Information

  • Homebuyer Forgivable Loan
  • Homebuyer Education and Counseling
  • Information and Referral
  • Homeowner Peer Group
Eligibility Requirements
For general homeownership information and education, anyone with a disability may inquire.

Eligibility for the downpayment assistance:

  • Wisconsin residents with disabilities or those who have family members with disabilities living with them
  • Good credit
  • Approved mortgage application with AnchorBank or another participating lender that is a member of the Chicago Federal Home Loan Bank
    •  
  • First-time homebuyer (has not owned a home in the past 3 years)
  • Income Limitations - Must be at or less than 60% of the HUD Area Median Income. To determine if a household falls under the income limit, go to www.huduser.org/datasets/il/il05/index.html . Scroll down the page to the Wisconsin Income Limits. Then look at the county or metropolitan area and the household size to find the income limit.
  • Property must be evaluated by a qualified home inspector

Types of classes Offered (Individual or Group)

  • Homebuyer counseling is required in order to be eligible for a downpayment grant. A list of organizations that provide homebuyer counseling is available.
  • MoneySmart, a money management class using curriculum developed by the Federal Deposit Insurance Corporation (FDIC), is offered three times during the year.

Consumer Responsibilities/Expectations

  • Consumer is responsible for qualifying for a mortgage.
  • Consumer is responsible for locating and attending a homebuyer counseling class.
  • Consumer is responsible for locating a house to purchase.
  • Consumer must participate fully in the homebuying process.

Cost
There is no cost for this service Additional Information 

Subsidy Amounts
If the homebuyer meets the eligibility requirements, the homebuyer may receive $5,600 in funding assistance (while available).  $600 will be reserved for counseling fees.

Grant Term
Although the term "grant" is sometimes used, it is actually a "forgivable" 5-year loan. For each month that passes, a portion of the loan is "granted" and that portion then does not need to be repaid. At the end of five years, the entire loan has become a grant with nothing owed even if the house is sold. HOWEVER, if the house is sold before the five years are up, the homebuyer will be required to repay the part of the loan that has not already been granted. There is no interest charge on the loan. If the home is refinanced with cash out, the portion not forgiven yet will have to be repaid. 

AHP Subsidy Restrictions

     The borrower has to be a first-time homebuyer.   Due to concerns about predatory lending, we will not give a subsidy to homebuyers with a mortgage interest rate that is more than 2.5% above the current WHEDA rate (www.wheda.com and click on “My Home”).  This number is adjusted weekly, so check the website at the time of application.  Additionally, the Loan-to-Value (LTV) ratio cannot exceed 105%.  There also can be no pre-payment penalty clause on the mortgage. If the person with the disability is over 18 years old the person must be included on the title.  The grant can only be used to purchase single family homes* using a 15-year or 30-year fixed loan.

          * “Single-family homes” covers single-family homes, condominiums, or duplexes.  In a duplex, 75% of the estimated rental income may be counted toward the person’s household income.  The homebuyer is also required to complete a landlord-training course, which can usually be taken through a local government entity or through Fannie Mae’s or Mortgage Guaranty Insurance Corporation’s home study course.

Section 8 Homeownership Program

     We encourage households with Section 8 Rental Assistance Vouchers to consider Section 8 Homeownership through Public Housing Authorities (PHA) that offer this.   The Housing Authority of City of Milwaukee and the Brown County Housing Authority have successful programs.  Other PHAs may have programs; contact your local PHA for details.

Social Security Concerns

     The AHP funds are “forgivable loans” and are given directly to the lending institution for the costs associated with buying or modifying the home.  The funds do not come directly to the homebuyer and do not count as income.

Lender Information and Concerns

     Over the years, we have incorporated changes to our program to prevent predatory lending.  They are described in the AHP Subsidy Restrictions section.  Unfortunately, due to issues with certain lenders not completing the paperwork properly, we are able to work only with banks that are members of the Chicago Federal Home Loan Bank.  A complete list of CFHLB Members in Wisconsin can be found at:  http://www.fhlbc.com/fhlbc/about/memberlist.asp?state=wi. 

      For your convenience, we have also created a list of Milwaukee-area members.  Contact the Homeownership Specialist for the list.


Reserved AHP Subsidy Funds
We have a limited amount of funds. This is a first-come, first-served program. Funds will be "reserved" only for households that are already pre-approved for a mortgage, and have an accepted offer on a home. If the downpayment assistance is not used within 90 days, the household risks losing the assistance.

Publications and Resources