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Home-Buy the American Dream (HBAD)

Administered by: City of Madison Community Development Division · City · Deferred Loan

Funding status: Active

How much assistance

Up to $35,000 (Deferred Loan)

Zero-interest, no monthly payments. Shared appreciation loan repaid when the home is sold or the first mortgage is refinanced. Borrower repays original loan amount plus a portion of home appreciation.

Eligibility

  • Income limits: 1-person: $52,850; 2-person: $60,400; 3-person: $67,950; 4-person: $75,500; 5-person: $81,550; 6-person: $87,600; 7-person: $93,650; 8-person: $99,700
  • First-time buyer required: Yes — Must not have owned a home in the past 3 years.
  • Geographic restrictions: Property must be located within City of Madison limits. Must be a single-family home, condominium, or one-half of a duplex.
  • Homebuyer education required: Yes

How to Apply for Home-Buy the American Dream (HBAD)

Step 1: Complete HUD-approved homebuyer education. Contribute a 1% down payment. Obtain a 30-year first mortgage that escrows for taxes and insurance. Contact the City of Madison Community Development Division at (608) 266-6520.

Notes

Housing-to-income ratio minimum is 25%. Total debt-to-income ratio maximum is 55%.

Cities Where This Program Is Available