Dane County CDBG
Down Payment and Closing Cost Program Guidelines

 

Dane County Momentum Down Payment
and Closing Cost Program Guidelines

The Momentum Program is a gap financing program for income eligible first time home buyers providing up to $10,000 per transaction in the form of a zero interest, deferred payment loan. Full details

Eligible Area: Dane County outside the City of Madison. Contact: Call the Movin’ Out, Inc. (“MOI”) intake line at 251-4446 Ext 7.

First Time Buyer: Applicants must be first time buyers defined as not having owned a home in the past three years, or being a single parent or a displaced homemaker.

Income Eligibility: Gross household income from all sources may not exceed 80% of the County Median Income adjusted for household size as determined by U.S. Department of Housing and Urban Development (“HUD”) guidelines.

Maximum Home Purchase Price: $220,000.

Minimum Down Payment: One percent or the purchase price from the buyer’s own funds.

Eligible Property Types: Detached single family home, condominium, or ½ duplex.

Ratios: Total combined debt to income ratios cannot exceed 40%. However, if the buyer’s income is adequate to complete the first mortgage transaction without MOI funds, MOI will not participate.

Loan Amount: $10.000

Eligible Costs: Down payment and/or closing costs standard to the industry such as appraisal, credit report, title insurance, settlement fees, other.

Home Buyer Education: Face to face homebuyer education from MOI is required. Loan Conditions: The loan is deferred until such time borrower sells the property, terminates occupancy as the primary residence, or upon a cash-out refinance.

Home Inspections: HUD Housing Quality Standard (“HQS”) Inspection must be conducted by a Dane County inspector. Independent third party inspection must be performed by an inspector licensed in the state of WI and selected by the home buyer.

Other Provisions: Interest rate on first mortgage loan no more than two percentage points more than the prevailing rate offered by Wisconsin Housing and Economic Development Authority. The maximum loan origination, points and/or funding fees may not exceed two percent of the first mortgage loan amount. Prepayment penalties are prohibited.

   Contact Us