See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 9, 2026
Homebuyer Programs in Madison, WI (2026)
Madison is Wisconsin's capital city and home to the University of Wisconsin, with a thriving economy and a median home price of around $420,000. First-time buyers can access the city's Home-Buy the American Dream program offering up to $35,000 in zero-interest, deferred-payment assistance, while the Own It: Building Black Wealth program provides $19,000 grants to qualifying families. Movin' Out offers up to $40,000 in deferred loans for buyers with disabilities. At the state level, WHEDA's Capital Access DPA provides up to $7,500 as a deferred zero-interest loan, the Easy Close DPA offers up to 6% of the purchase price, and the Tax Advantage Mortgage Credit Certificate saves buyers up to $2,000 per year in federal taxes. By combining city, state, and federal programs, eligible Madison buyers could access over $40,000 in total assistance.
City Programs in Madison
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Home-Buy the American Dream (HBAD) | Deferred Loan | Up to $35,000 | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- Up to $35,000
- First-time only:
- Yes
State Programs in Wisconsin
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| WHEDA Advantage Conventional Loan | Government-Insured Mortgage | Low down payment first mortgage (as low as 3% down) | Yes | View → |
| WHEDA Advantage FHA Loan | Government-Insured Mortgage | Low down payment first mortgage (3.5% down) | Yes | View → |
| WHEDA Capital Access DPA | Deferred Loan | $7,500 (0% interest, deferred second mortgage) | No | View → |
| WHEDA Easy Close DPA | Repayable Loan | Up to 6% of purchase price | Yes | View → |
| WHEDA Tax Advantage (Mortgage Credit Certificate) | Tax Credit | Up to $2,000 per year in federal tax credits | Yes | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Low down payment first mortgage (as low as 3% down)
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- Low down payment first mortgage (3.5% down)
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- $7,500 (0% interest, deferred second mortgage)
- First-time only:
- No
- Type:
- Repayable Loan
- Amount:
- Up to 6% of purchase price
- First-time only:
- Yes
- Type:
- Tax Credit
- Amount:
- Up to $2,000 per year in federal tax credits
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Downpayment Plus Program (FHLBank Chicago) | Grant | Up to $6,000 (3:1 match of buyer contribution, max $6,000) | No | View → |
| Habitat for Humanity of Dane County Homeownership Program | Zero-Interest Loan | Affordable new-construction home with zero-interest mortgage | Yes | View → |
| Madison Area Community Land Trust (MACLT) | Zero-Interest Loan | Homes priced 30% below market (recent sales between $157,000 and $235,000) | Yes | View → |
| Movin' Out Down Payment Assistance (Madison) | Deferred Loan | Up to $40,000 in City of Madison (up to $35,000 in other Dane County areas) | Yes | View → |
| Own It: Building Black Wealth Down Payment Grant | Grant | $19,000 grant | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $6,000 (3:1 match of buyer contribution, max $6,000)
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- Affordable new-construction home with zero-interest mortgage
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Homes priced 30% below market (recent sales between $157,000 and $235,000)
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $40,000 in City of Madison (up to $35,000 in other Dane County areas)
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- $19,000 grant
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. The Home-Buy the American Dream program has income limits ranging from $52,850 for a 1-person household to $99,700 for an 8-person household. WHEDA programs have separate county-based income limits.
Step 2: Complete homebuyer education. All Madison programs require HUD-approved homebuyer education. The Urban League of Greater Madison offers free courses and can be reached at (608) 729-1222. The Home Buyers Round Table of Dane County also coordinates education at homebuyersroundtable.org.
Step 3: Contact a housing counselor. The City of Madison Community Development Division administers the HBAD program and can be reached at (608) 266-6520. For disability-related assistance, contact Movin' Out directly.
Step 4: Get pre-approved for a mortgage. Work with a WHEDA-approved lender to explore WHEDA Advantage Conventional or FHA loans, which can be paired with state DPA programs. You must obtain a 30-year first mortgage that escrows for taxes and insurance.
Step 5: Contribute your minimum down payment. The HBAD program requires a 1% borrower contribution. Your housing counselor will help you understand the total funds needed.
Step 6: Find a home within program guidelines. The property must be located within Madison city limits and be a single-family home, condominium, or one-half of a duplex. The Madison Area Community Land Trust also has affordable homes priced 30% below market.
Step 7: Close on your home. Your lender and housing counselor will coordinate all DPA funds to be applied at closing. The HBAD loan has no monthly payments and is repaid only when you sell or refinance.
Frequently Asked Questions
How much down payment assistance can I get in Madison?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay?+−
What homebuyer education is required?+−
What is the Madison Area Community Land Trust and how does it work?+−
Are there programs for buyers with disabilities?+−
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