Ephraim, WI
Down Payment Assistance Loans
Down Payment Assistance Programs (DPA) in Ephraim
Most individuals wrongly assume that you need a 20% down payment to buy a house. This used to be true, and there are still traditional mortgage lenders out there who will insist on 20%. However, times have since changed for the better.
It is now possible to pay a down payment of as little as 3.5%. Not only that, but you can also receive assistance for the amount required.
Ephraim, WI down payment assistance (DPA) programs designed to help people make the initial payment on their future home. As long as certain criteria are fulfilled, even those on low incomes can now purchase a home to live in. Contact Compass Mortgage today and let us walk you through the mortgage loan process.
What Are the Different Types of Ephraim, WI DPA Programs?
Overall, four DPA programs are available. Depending on your area, all of them may not be offered:
- Grants: Money given with no repayment required.
- Loans: These are second mortgages that must be repaid monthly.
- Forgivable Loans: Second mortgages that are forgiven over a determined number of years (usually five). They must be repaid if you sell, refinance, or move.
- Deferred Loans: Second mortgages on a property. Repayment is only required when you sell, move, or refinance the home.
Loans can be interest-based, with the interest percentage lower or higher than your mortgage rate. That said, the most common type of DPA is a grant, which never has to be repaid, though they are not offered in the state of Wisconsin.
Any interest rate applied is determined by your circumstances and the type of DPA taken.
How Do You Qualify for Home Down Payment Assistance in Ephraim, WI?
The qualifying criteria will vary slightly according to your area. There are several defining criteria that are required no matter where you live, as long as:
- You are a first-time buyer.
- You are on a low-moderate income.
- You wish to purchase a home in a target area.
- The home you buy will be your primary residence.
- You use an approved mortgage lender.
- You obtain an approved mortgage.
A targeted area is somewhere that has been federally identified as needing economic growth. Therefore, homebuyers are encouraged to purchase in these areas to stimulate the economy. For this reason, it is generally easier to obtain DPA if you are looking to move to such an area.
How Much Down Payment Assistance is Available in Ephraim?
The amount of DPA you receive in the Ephraim, WI area is generally dependent on the area you are looking to buy in. Ranging from zero, to tens of thousands of dollars, many factors play into how much you will receive, and whether or not you ever have to pay it back.
You can often use your DPA loan to pay for closing costs as well. You will be told whether you can do this when you apply.
What Kind of Mortgage Do You Need for a DPA?
You can only obtain a Ephraim down payment assistance loan if you obtain a mortgage from an approved lender, such as Compass Mortgage. Furthermore, you may be obliged to take out a specific type of mortgage, although the most common mortgage types are generally accepted:
- Conventional loans (Fannie Mae, Freddie Mac, etc.)
- VA (Veterans Affairs) loans.
- FHA (Federal Housing Administration).
- USDA (US Department of Agriculture) loans.
What DPA Programs Does the State of Wisconsin Offer?
Ephraim, WI home loan down payment assistance, unfortunately, does not include grants. If you intend to buy a home in this state, your options are limited. The Wisconsin Housing and Economic Development Authority (WHEDA) has a program called “Capital Access:”
- Borrow up to $3,050 for your down payment and closing costs.
- No monthly payments.
- Only repayable when you have paid off your first mortgage, you sell or refinance the house, or move.
There is also something called the Easy Close DPA program. This provides up to 6% of your primary mortgage amount as a ten-year loan at a fixed rate. This is repayable monthly.
Learn More About What You Qualify For
If you would like to make an application for a DPA program in Ephraim, or understand more about how you qualify, it is best to speak to an approved mortgage lender. They will be able to give you specific details surrounding your personal circumstances.
For the Ephraim, WI area, contact our team at Compass Mortgage. We have experts in the Wisconsin home buying market who can advise you on the best type of mortgage and which assistance you qualify for. You may find that a previously out-of-reach home now fits within your budget. DPAs are designed to make home-buying more affordable, so it is important to take advantage of them.