Quick check: are you in the ballpark?

Before the steps, here are the three gates that stop most people. If you clear these, you are very likely eligible:

• Credit: 620+ for a conventional WHEDA loan, 640+ for FHA.
• Income: household income at or below the Dane County limits ($99,120 for 1–2 person, $129,800 for 3+ person households).
• First-time status: no ownership interest in a principal residence in the past 3 years, with exemptions for veterans, target areas, and some divorced or displaced buyers.

WHEDA requires a homebuyer education course, and it is smart to do this first because the certificate is good for a set window and you want it ready when you apply. You can take it online or through a Madison-area HUD-approved counselor or UW Extension. The course covers budgeting, the mortgage process, and what to expect at closing, and completion rates correlate with much lower default rates down the road.

Knock this out early. It is the one step you control completely, and having the certificate in hand removes a common last-minute delay.

WHEDA income limits count the combined income of the adults in the household, and they vary by county and household size. For Dane County, the non-target limits are $99,120 for a 1–2 person household and $129,800 for a household of 3 or more. Target-area properties can carry higher limits.

The same Dane County limits apply across Madison, Sun Prairie, Middleton, Fitchburg, Verona, Oregon, and Stoughton. If your income is near the line, this is worth confirming with a lender before you shop, because it determines which WHEDA products you can use.

The minimum credit score is 620 for conventional and 640 for FHA WHEDA loans, and the underwriting is more flexible than many people expect. Rental payment history and steady employment can support an application, not just the raw score.

First-time buyer means no ownership interest in a principal residence in the past three years. Several groups are exempt:

• Military veterans (no first-time requirement)
• Buyers purchasing in designated target areas
• Displaced homemakers and single parents who previously owned a home only with a former spouse

WHEDA is not one product. The pieces you are most likely to use in Madison are:

Easy Close Advantage (active)

Down payment assistance of up to 6% of the purchase price, structured as a second mortgage at the same rate as your first loan. It works for condos, townhomes, and single-family homes, and conventional WHEDA loans carry no PMI.

Tax Advantage MCC (active)

A mortgage credit certificate that can save up to $2,000 a year on federal taxes, equal to a percentage of your annual mortgage interest, for up to 30 years. This can be combined with a WHEDA first mortgage.

Capital Access DPA Currently suspended

A 0% deferred down payment loan when funded. As of the last program update it was temporarily suspended due to funding constraints, so confirm current availability before counting on it.

Before you apply, pull together the standard file a lender will ask for:

• Two years of tax returns
• Recent pay stubs and proof of income for all household adults
• Recent bank statements
• Your homebuyer education certificate

Choose a WHEDA-approved lender and get pre-approved. Pre-approval typically comes back in one to three business days and tells you your price range and which WHEDA products fit. Two Madison-area loan officers experienced with WHEDA are Mike Schroeder at Guaranteed Rate and Tony Burns at Fairway Mortgage.

Once you are under contract on a home, the lender submits the full WHEDA application. Underwriting usually runs 7 to 14 days, and most Dane County buyers move from contract to closing in 30 to 45 days. The biggest thing you can do to protect the timeline is keep your finances stable: no new debt, no job changes, no large unexplained deposits.

Frequently asked questions