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💰 Downpayment Plus (DPP)
Federal grant program offering up to $10,000 for down payment assistance. This grant becomes completely free if you stay in the home for 5 years - perfect for both first-time and repeat buyers throughout Wisconsin.
Quick Answer
Downpayment Plus (DPP) provides up to $10,000 in grant money that becomes completely free after 5 years. Available statewide for Wisconsin homebuyers with 620+ credit scores and income under 80% of area median income. Works with any loan type.
Understanding Downpayment Plus (DPP)
For voice assistants: Downpayment Plus (DPP) is a federal grant program providing up to $10,000 for Wisconsin homebuyers. Grant is forgiven after 5 years of homeownership. Requirements include 620+ credit score, income under 80% AMI, and can be used with FHA, conventional, VA, or other loan types statewide.
What Makes DPP Special
DPP is a federal grant program (not a loan) that provides real money for your down payment and closing costs. Unlike loans, this money becomes completely yours after 5 years - no repayment required. It's designed to help qualified buyers overcome the biggest barrier to homeownership: the upfront costs.
Up to $10,000 Free
Purpose: Provide real grant money for down payment and closing costs.
How It Works:
- Receive up to $10,000 at closing
- Use for down payment and closing costs
- Completely forgiven after 5 years
- No monthly payments required
- Combines with any loan type
Becomes 100% Free
Purpose: Reward homeowners for long-term commitment to their community.
Forgiveness Schedule:
- Stay 5 years = 100% forgiven
- Move before 5 years = prorated repayment
- No monthly payments during 5 years
- Automatic forgiveness (no paperwork)
- Builds community stability
DPP Grant Details & Forgiveness Timeline
Grant Forgiveness: DPP grants are forgiven proportionally over 5 years. If you sell or move before 5 years, you repay only the remaining unforgiven portion. For example, if you move after 3 years with a $10,000 grant, you'd repay $4,000 (40% remaining).
Grant Forgiveness Schedule
Real Example: $10,000 DPP Grant Scenarios
Scenario 1 - Stay 5+ Years:
Grant Received: $10,000
Amount to Repay: $0
You keep the entire $10,000!
Scenario 2 - Move After 3 Years:
Grant Received: $10,000
Forgiven (60%): $6,000
Amount to Repay: $4,000
Still got $6,000 in free assistance!
Scenario 3 - Move After 18 Months:
Grant Received: $10,000
Forgiven (30%): $3,000
Amount to Repay: $7,000
Even short-term, you benefit from the assistance
How DPP Grant Money Can Be Used
Down Payment: Reduce your required cash down payment
Closing Costs: Cover loan fees, title insurance, inspections
Prepaid Items: Property taxes, homeowner's insurance, HOA fees
Cannot Be Used For:
• Moving expenses or furniture
• Home improvements or repairs
• Paying off existing debt
• Investment or second homes
Who Can Qualify for DPP Grants?
DPP Eligibility: To qualify for DPP grants in Wisconsin 2025, you need a credit score of 620+, household income under 80% of area median income, must purchase in Wisconsin as primary residence, and can be either first-time or repeat buyers. Works with any loan type.
Basic Requirements
- Credit score 620 or higher
- Household income under 80% of Area Median Income
- Primary residence in Wisconsin
- U.S. citizen or permanent resident
- Complete homebuyer education (if required by lender)
- Work with DPP-participating lender
Buyer Type Flexibility
- First-time buyers welcome
- Repeat buyers welcome
- No previous homeownership restrictions
- Move-up buyers can qualify
- Divorced individuals rebuilding qualify
- Can combine with other assistance programs
DPP vs Other Programs: Buyer Type Comparison
DPP Advantage: Unlike many assistance programs, DPP welcomes both first-time AND repeat buyers!
| Program | First-Time Buyers | Repeat Buyers | Max Grant/Assistance |
|---|---|---|---|
| DPP | ✅ Yes | ✅ Yes |