See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated April 9, 2026

Homebuyer Programs in Racine, WI (2026)

Population: 78,000 | Median home price: $205,000 | Est. closing costs: $4,000 - $6,000

Racine is a mid-sized city on the shores of Lake Michigan in southeastern Wisconsin, about 30 miles south of Milwaukee. With a median home price around $205,000, Racine offers relatively affordable homeownership compared to the broader metro area. Buyers here can tap into the City of Racine TID 22 New Homeowner Assistance Program, which provides up to $10,000 as a forgivable loan for down payment and closing costs. At the state level, WHEDA Easy Close DPA offers up to 6% of the purchase price, and the WHEDA Capital Access DPA provides up to $7,500. Additional support is available through the Downpayment Plus Program (up to $6,000 grant), the WORTH Down Payment Assistance Program (up to $8,000 grant), and Habitat for Humanity of Racine and Kenosha Counties. By combining city, state, and federal programs, Racine buyers can potentially stack $20,000 or more in total assistance.

City Programs in Racine

Program Name	Type	Amount	First-Time Only	Details
City of Racine Employee Homebuyer Assistance Program	Forgivable Loan	Up to $10,000	No	View →
City of Racine TID 22 New Homeowner Assistance Program	Forgivable Loan	Up to $10,000	No	View →

City of Racine Employee Homebuyer Assistance Program

Type:: Forgivable Loan
Amount:: Up to $10,000
First-time only:: No

City of Racine TID 22 New Homeowner Assistance Program

Type:: Forgivable Loan
Amount:: Up to $10,000
First-time only:: No

County Programs in Racine County

Program Name	Type	Amount	First-Time Only	Details
WORTH Down Payment Assistance Program	Grant	Up to $8,000	Yes	View →

WORTH Down Payment Assistance Program

Type:: Grant
Amount:: Up to $8,000
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 →

WHEDA Advantage Conventional Loan

Type:: Government-Insured Mortgage
Amount:: Low down payment first mortgage (as low as 3% down)
First-time only:: Yes

WHEDA Advantage FHA Loan

Type:: Government-Insured Mortgage
Amount:: Low down payment first mortgage (3.5% down)
First-time only:: Yes

WHEDA Capital Access DPA

Type:: Deferred Loan
Amount:: $7,500 (0% interest, deferred second mortgage)
First-time only:: No

WHEDA Easy Close DPA

Type:: Repayable Loan
Amount:: Up to 6% of purchase price
First-time only:: Yes

WHEDA Tax Advantage (Mortgage Credit Certificate)

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 →

FHA Loans

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

Good Neighbor Next Door (HUD)

Type:: Government Property Sale Program
Amount:: 50% discount off the list price of HUD-owned homes
First-time only:: Yes

Home Possible Mortgage (Freddie Mac)

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

HomeReady Mortgage (Fannie Mae)

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

HUD $100 Down Program

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

USDA Rural Development Loans

Type:: Government-Guaranteed Mortgage
Amount:: 100% financing (no down payment required); loan amount up to appraised value
First-time only:: No

VA Loans

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 Racine & Kenosha Counties Homeownership Program	Zero-Interest Loan	Affordable new-construction home with zero-interest mortgage	No	View →
NACA Purchase Program	Zero-Interest Loan	No down payment, no closing costs, no PMI, no fees, and below-market fixed interest rate	No	View →

Downpayment Plus Program (FHLBank Chicago)

Type:: Grant
Amount:: Up to $6,000 (3:1 match of buyer contribution, max $6,000)
First-time only:: No

Habitat for Humanity of Racine & Kenosha Counties Homeownership Program

Type:: Zero-Interest Loan
Amount:: Affordable new-construction home with zero-interest mortgage
First-time only:: No

NACA Purchase Program

Type:: Zero-Interest Loan
Amount:: No down payment, no closing costs, no PMI, no fees, and below-market fixed interest rate
First-time only:: No

Free eligibility check

18 programs available in Racine. See which ones you qualify for.

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How to Apply

Step 1: Check your eligibility. Most programs require household income at or below 80% of Area Median Income, and some require first-time buyer status. WHEDA income limits for Racine County are $104,800 for 1-2 person households and $120,520 for 3+ person households.

Step 2: Complete homebuyer education. Contact Housing Resources Inc at their Racine/Kenosha office at 262-994-1847 to enroll in a HUD-approved homebuyer education course. This is required for most assistance programs.

Step 3: Get pre-approved for a mortgage. Work with a WHEDA-approved lender to determine your purchasing power and eligibility for WHEDA first mortgage programs and DPA options like Easy Close (up to 6% of purchase price) and Capital Access (up to $7,500).

Step 4: Explore local assistance programs. Contact the City of Racine Department of City Development at (262) 636-9197 to learn about the TID 22 New Homeowner Assistance Program (up to $10,000 forgivable loan). Also ask Housing Resources Inc about the WORTH grant (up to $8,000) and the Downpayment Plus grant (up to $6,000).

Step 5: Find a home within program limits. The WHEDA purchase price limit for Racine County is $544,232 for a single-family home. If applying for the TID 22 program, confirm the property is within the TID 22 boundaries.

Step 6: Submit your applications and close. Your lender and housing counselor will help you layer multiple programs together. Allow 30-60 days for program processing in addition to your standard mortgage timeline.

Frequently Asked Questions

How much down payment assistance can I get in Racine?+

Racine buyers can access significant assistance by stacking programs. The City of Racine TID 22 program offers up to $10,000 as a forgivable loan. WHEDA Easy Close DPA provides up to 6% of the purchase price (about $12,300 on a $205,000 home). WHEDA Capital Access DPA offers up to $7,500. The WORTH program provides grants up to $8,000, and Downpayment Plus offers up to $6,000. Combined, eligible buyers could potentially receive $20,000 or more in total assistance.

Do I have to be a first-time homebuyer to qualify?+

Not all programs require first-time buyer status. The City of Racine TID 22 program is open to all buyers, not just first-time buyers. However, WHEDA programs generally require first-time buyer status (defined as not having owned a home in the past 3 years), though exceptions exist for purchases in targeted areas or for veterans. The WORTH grant and Downpayment Plus also typically require first-time buyer status.

What is the maximum home price I can pay using these programs?+

The WHEDA purchase price limit for single-family homes in Racine County is $544,232. The City of Racine TID 22 program does not have a specific purchase price limit but the home must be within TID 22 boundaries. Most buyers in Racine will fall well within these limits given the median home price of around $205,000.

What homebuyer education is required?+

Most programs require completion of a HUD-approved homebuyer education course. Housing Resources Inc operates a Racine/Kenosha office at 262-994-1847 and offers homebuyer education and one-on-one counseling. WHEDA requires completion of pre-purchase education for all DPA programs. Habitat for Humanity of Racine and Kenosha Counties also offers homeownership preparation education as part of their program.

What is the City of Racine TID 22 program and who qualifies?+

The TID 22 New Homeowner Assistance Program provides up to $10,000 as a forgivable loan for down payment and closing costs. The loan is forgiven at 20% per year over 5 years of owner-occupancy. The key restriction is that the home must be located within the Tax Incremental District No. 22 boundaries. Contact the City of Racine Department of City Development at (262) 636-9197 to confirm the TID 22 map and current availability.

Are there programs for Racine city employees?+

Yes. The City of Racine Employee Homebuyer Assistance Program provides up to $10,000 in down payment and closing cost assistance to City of Racine employees purchasing a home within the city. The forgivable loan is forgiven at 1/7th per year over 7 years. Funding is limited and awarded on a first-come, first-served basis.