Madison Wisconsin First Time Home Buyer Programs
Get up to 6% down payment assistance with WHEDA loans in Madison, Dane County, and surrounding areas. Over 141,800 Wisconsin families have achieved homeownership with no PMI required.
Available Programs in 2025
🏠 Madison & Dane County Success Stories
WHEDA has helped over 4,200 Madison area families achieve homeownership in Dane County alone. $13 million in down payment assistance distributed statewide in 2024, with competitive programs for Sun Prairie, Middleton, Fitchburg, Verona, and surrounding communities. Learn more about WHEDA's official homebuyer programs.
Easy Close Advantage DPA Madison
Up to 6% of purchase price for Madison, Sun Prairie, Middleton, Fitchburg first time home buyers. No PMI required on WHEDA conventional loans.
- $1,000 minimum assistance for Dane County
- Same interest rate as first mortgage
- Available for condos, townhomes, single family homes
- Up to 105% financing in Madison area
Capital Access DPA
$3,050 to $7,500 as a 30-year deferred loan at 0% interest. Temporarily suspended as of May 1, 2025 due to funding constraints.
- No monthly payments when active
- 0% interest rate
- Full balance due only at sale or refinance
- Targeted to high-need housing areas
Madison Area Tax Advantage MCC
Save up to $2,000 annually on federal taxes with mortgage credit certificate. Perfect for Madison professionals and Dane County families.
- 25% of mortgage interest as tax credit
- 40% credit rate for veterans in Madison area
- Benefits last up to 30 years
- Combine with other WHEDA first time buyer programs
Madison Wisconsin First Time Home Buyer Requirements
💰 Dane County Income Limits 2025
Madison Area Limits: Up to $99,120 (1-2 person) / $129,800 (3+ person) for non-target areas in Dane County.
- Sun Prairie, Middleton, Fitchburg: Same Dane County limits
- Target area properties: Higher income limits available
- Verona, Oregon, Stoughton: Standard Dane County limits
- Combined household income from all adults
📊 Madison Credit Score Requirements
620 minimum for conventional, 640 for FHA with flexible underwriting for Madison area first time buyers.
- WHEDA Way Home: Character-based lending in Milwaukee/Kenosha
- Madison area lenders offer pre-qualification
- Rental payment history considered
- UW-Madison employees: Special consideration available
🏡 Madison First-Time Home Buyer Definition
No ownership in past 3 years in Madison, Dane County, or anywhere else with key exceptions.
- Military veterans: No first-time requirement
- Divorced/separated: Previous ownership with ex-spouse OK
- Target area purchases: First-time requirement waived
- Madison area condos and townhomes eligible
🎯 Madison Area Purchase Price Limits 2025
Dane County (Madison, Sun Prairie, Middleton, Fitchburg): $524,225 single-family homes / $671,200 duplexes
Includes: Madison condos, Verona townhomes, Oregon single family, Stoughton properties
Why Choose WHEDA for Madison Home Buying?
🚫 No PMI for Madison Buyers
WHEDA conventional loans in Madison require no private mortgage insurance, saving $200-400 monthly compared to traditional financing on Dane County homes.
💵 Competitive Madison Mortgage Rates
WHEDA offers below-market rates for Madison area first time buyers, with additional rate reductions available for target area properties in Dane County.
🎓 Madison Home Buyer Education
Required homebuyer education available online or through Madison-area HUD counselors ensures successful homeownership with default rates below 2%.
🏪 Madison WHEDA Lenders
Preferred Madison area WHEDA lenders include Mike Schroeder at Guaranteed Rate and Tony Burns at Fairway Mortgage - both specializing in first time home buyer programs.
💪 Wisconsin Self-Sustaining Program
No taxpayer subsidies - WHEDA reinvests earnings into competitive rates and expanded programming for future Madison area homebuyers.
📈 Madison Success Stories
Over 4,200 Dane County families served with high satisfaction rates. Madison area buyers report successful homeownership outcomes exceeding national averages.
How to Apply for Madison WHEDA Loans
1️⃣ Complete Madison Home Buyer Education
Mandatory first time home buyer education available through Madison-area HUD counselors, UW Extension, or online platforms. Certificate valid 12 months.
2️⃣ Gather Financial Documents
Collect 2 years tax returns, recent pay stubs from Madison employers, bank statements, and all household income documentation for WHEDA application.
3️⃣ Choose Madison WHEDA Lender
Select from preferred Dane County lenders: Mike Schroeder at Guaranteed Rate or Tony Burns at Fairway Mortgage - both experienced with Madison first time buyers and WHEDA programs.
4️⃣ Submit WHEDA Application
Madison area pre-approval in 1-3 days. Full underwriting 7-14 days. Most Dane County applications approved within 2-3 weeks for qualified buyers.
⏱️ Madison Home Buying Timeline: 30-45 Days
Working with experienced Madison WHEDA lenders like Mike Schroeder at Guaranteed Rate and Tony Burns at Fairway Mortgage streamlines the process. Maintain stable employment during application.
Frequently Asked Questions
For Madison and Dane County, income limits are up to $99,120 for 1-2 person households and $129,800 for larger families in non-target areas. Target areas may have higher limits up to $175,230. These limits include all adult household members' income, not just borrowers on the loan.
The Easy Close Advantage program provides up to 6% of the purchase price as down payment assistance, with a minimum of $1,000. This is structured as a 10-year second mortgage at the same interest rate as your first mortgage. You can use these funds for down payment, closing costs, or prepaid expenses.
Generally, yes. First-time buyer means no ownership interest in a principal residence during the past 3 years. However, veterans, purchases in target areas, displaced homemakers, and single parents who previously owned only with a former spouse may be exempt from this requirement.
WHEDA requires a minimum credit score of 620 for conventional loans and 640 for FHA loans. They offer more flexible underwriting than traditional lenders, considering factors like rental payment history and employment stability beyond just credit scores.
Preferred WHEDA lenders in the Madison area include Mike Schroeder at Guaranteed Rate and Tony Burns at Fairway Mortgage. These loan officers specialize in first-time home buyer programs and have extensive experience with WHEDA loan products and requirements.
No, conventional WHEDA loans do not require private mortgage insurance (PMI), potentially saving borrowers $200-400 monthly compared to traditional financing. This is one of the major benefits of WHEDA programs for Madison area homebuyers.
The Tax Advantage Mortgage Credit Certificate allows you to save up to $2,000 annually on federal taxes. You receive a tax credit equal to 25% of your annual mortgage interest (40% for veterans), which reduces your tax liability dollar-for-dollar for up to 30 years.
The typical timeline is 30-45 days from contract to closing. Pre-approval can be obtained within 1-3 business days, full underwriting takes 7-14 days, and conditional approval is usually achieved within 2-3 weeks when working with experienced WHEDA lenders.
For Dane County (including Madison, Sun Prairie, Middleton, Fitchburg), the 2025 purchase price limits are $524,225 for single-family homes and $671,200 for duplexes. These limits apply to all WHEDA program-eligible properties in the Madison area.