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Homebuyer Programs in Racine, WI (2026)

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

Last updated April 9, 2026

Skyline of Racine, WI

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

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

WORTH Down Payment Assistance Program
Type:
Grant
Amount:
Up to $8,000
First-time only:
Yes

State Programs in Wisconsin

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:
Up to $7,500 (between $3,050 and 3% of purchase price)
First-time only:
Yes
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

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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
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

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, below-market fixed interest rate
First-time only:
No

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.

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