Down Payment Assistance in Madison & Dane County, WI: Every Program You Need to Know

The down payment is the single biggest barrier standing between most Madison-area renters and homeownership. In a market where the median home price is pushing above $450,000, even a conventional 5% down payment means coming to the table with more than $22,000 — plus closing costs. That number stops a lot of buyers before they even start the conversation.

What many buyers don't realize is that there are multiple down payment assistance programs available specifically for Madison and Dane County buyers — some forgivable, some zero-interest, some stackable with each other. Used correctly, these programs can cut the upfront cash requirement dramatically.

Rob Miller and the MadCity Home Loans Team with ProVisor, Inc. walk buyers through these options as a standard part of every purchase consultation. Here's the full breakdown.

Program 1: City of Madison HBAD (Home Buyer Assistance for Down Payment)

The City of Madison's Housing Buyer Assistance for Down Payment (HBAD) program is one of the most valuable and least-discussed tools available to Madison homebuyers.

What it offers: Up to approximately $35,000 in down payment and closing cost assistance for income-qualifying buyers purchasing within the City of Madison limits.

Key terms: - The HBAD loan carries no monthly payments for eligible buyers - The loan is due and payable at the time of sale, when the property is no longer owner-occupied, or when the first mortgage is refinanced for cash-out purposes unrelated to home improvement - Shared appreciation provisions may apply — meaning the city shares in a portion of any value gain when the home is eventually sold - Buyers must meet income limits (based on area median income guidelines for Dane County)

What makes HBAD powerful: Most buyers think of down payment assistance in the $5,000–$10,000 range. HBAD's ceiling of approximately $35,000 is exceptional for a local program — it can substantially close the gap for a first-time buyer getting into a Madison home without depleting their savings.

Important: HBAD is for properties within the City of Madison limits. Buyers interested in suburban communities like Waunakee, Sun Prairie, or Middleton will look to other programs below.

Program 2: WHEDA First Mortgage + WHEDA Easy Close DPA

The Wisconsin Housing and Economic Development Authority (WHEDA) operates the state's flagship affordable homebuying program — and it's available throughout Dane County, not just within Madison city limits.

WHEDA First Mortgage: A below-market-rate first mortgage — either FHA or conventional — with a fixed 30-year term. WHEDA sets rates that are typically competitive with or below what buyers would access through standard market programs.

WHEDA Easy Close DPA: A second mortgage available alongside a WHEDA first that provides down payment and closing cost assistance. The amount is calculated as a percentage of the purchase price (typically up to 6%) and is structured as a 10-year term at a below-market rate.

Who qualifies for WHEDA: - Income limits apply based on household size and county - In Dane County, limits are higher than many Wisconsin counties, which means more buyers qualify than they expect - Does not have to be a first-time buyer (though first-time buyers access additional benefits) - Must occupy the home as a primary residence

Credit requirements: WHEDA programs have minimum credit score requirements that vary by product. Rob's team confirms eligibility early in the process to avoid any surprises.

Program 3: Downpayment Plus (Federal Home Loan Bank)

The Federal Home Loan Bank of Chicago's Downpayment Plus program provides up to approximately $10,000 in forgivable grant assistance — money that doesn't have to be repaid as long as the buyer occupies the home for a minimum period after purchase.

Key features: - Available through participating lenders (MadCity Home Loans qualifies) - Income limits apply based on area median income - Forgivable over a five-year retention period - Can be combined with WHEDA and other programs

Downpayment Plus is often the third piece of a stacking strategy — layered on top of a WHEDA first mortgage and Easy Close DPA to further reduce the buyer's out-of-pocket cost.

Program 4: REALTORS® Association of South Central Wisconsin Housing Foundation

The RASCW Housing Foundation provides assistance of up to $6,000 or 3% of the purchase price (whichever is lower) for income-qualifying buyers throughout South Central Wisconsin — which includes Dane County.

Key features: - Zero-interest loan with no monthly payments required - No income-based repayment — the loan is forgiven over time as long as the home remains owner-occupied - Funding is limited and operates on a first-come basis

Program 5: Movin' Out

Movin' Out provides down payment and closing cost assistance of up to approximately $75,000 for qualifying households where at least one member has a documented permanent disability.

Key features: - Not restricted to first-time buyers - Maximum purchase price limit applies (verify current threshold) - Buyers should contact Movin' Out to reserve funds prior to pre-approval, as funding is allocated in advance

This is one of the largest assistance amounts available anywhere in Wisconsin and is significantly underutilized by buyers who qualify.

Stacking: Using Multiple Programs Together

The most powerful approach — and the one Rob Miller actively walks buyers through — is combining programs to eliminate or dramatically reduce the required cash at closing.

An example stack: A first-time buyer purchasing a home in Madison at approximately $320,000 with a WHEDA FHA first mortgage might combine: - WHEDA Easy Close DPA (up to 6% of purchase price) - Downpayment Plus ($10,000 forgivable grant) - HBAD (up to $35,000 for properties within city limits)

The result, for a buyer who qualifies for all three, could be a near-elimination of required down payment and closing cost cash — turning what felt like an impossible savings hurdle into a real closing.

Not every buyer qualifies for every program. Income limits, property location, credit thresholds, and funding availability all factor in. But the principle of stacking — using every eligible source simultaneously — is what turns assistance programs from a small help into a genuine game-changer.

Why Most Buyers Don't Know About These Programs

These programs exist and are well-funded. The reason most buyers don't use them isn't eligibility — it's awareness. A buyer who calls a big bank for a mortgage pre-approval is often not being walked through local DPA options. These programs require lenders who know the programs exist, have relationships with the administering agencies, and are willing to do the extra work of combining multiple products on a single transaction.

Rob Miller's team structures these combinations regularly. It's not an exception — it's a standard part of the first-time buyer consultation process.

How to Find Out What You Qualify For

The first step is a direct conversation about your income, household size, target property location, and credit profile. From there, Rob's team maps your profile against the programs above and identifies which ones apply — and which can be layered together.

There is no cost to have this conversation, and it doesn't require a formal application.

Call or text Rob directly: 608-227-2002 Email: rob@provisor.com Schedule a free strategy session at MadCityHomeLoans.com