Purchase/Rehab Program

The HOME Consortium operates a Purchase/Rehab Program to provide low and moderate income households with access to loans funds to buy a home of their own and make needed modest home repairs.

The Purchase/Rehab Program provides two loans, both closed at the time of home purchase:

• The first is a Down Payment Assistance Loan (DPA), which provides homebuyers with a forgivable loan of up to $5,000 to be used for down payment and/or closing costs. This loan is forgiven at a rate of 20% a year over five years, as long as the homeowner remains in the home and maintains it as a primary residence.
• The second loan is the Homeowner Rehabilitation Deferred Loan. This loan is a 0% interest deferred loan of up to a maximum of $20,000. There are no monthly payments and the loan is repayable upon time of sale or transfer of the property.

Eligible homebuyers must apply for this program as they do for the DPA program, through a participating lender of their choice. The lender will receive a loan commitment from the HOME Consortium program administrator once the applicant’s income has been verified. The home is then inspected by the HOME Consortium’s qualified inspector to identify any violations of HOME Consortium Code Requirements. Any violations must be fixed.

Once the inspection has been completed, the homeowner obtains bids for the rehab work from contractors. These bid estimates make up the total of the Rehab loan. The DPA and the Rehab loan are closed at the applicant’s home purchase closing. The new homeowner has a maximum of 6 months to complete the repairs on the home after the loan is closed. WPHD staff will work with the homeowner to obtain bids and monitor construction until the work is finished. Another inspection is required at that time to ensure the work meets HOME Consortium Code Requirements. Contractors are paid by WPHD after the work is completed and passes inspection.

Eligibility

• Eligible Properties: The home must be owner-occupied, single family attached or detached units (such as condominiums). In addition, the value of the home to be purchased (including rehab costs) must be below HUD After-Rehab Value limits set for each county.

2008 MAXIMUM PURCHASE PRICE LIMITS
Jefferson County Ozaukee County Washington County Waukesha County	$190,152 $208,567 $208,567 $208,567

• Eligible buyers must have an annual household income below 80% of the area county median.
• All home buyers who receive DPA loans must attend the HOME Consortium homebuyer counseling program prior to release of DPA funds.
• Priority repair activities include repairs to mechanical or structural items that present an imminent health and safety problem, such as:
  
  - roofs
  - mechanical systems (e.g., furnaces and hot water heaters)
  - plumbing, water or water/sewer laterals in disrepair
  - windows in disrepair
  - foundations
  - siding
  - improvements to the interior of the home in bathrooms and kitchens
  - any accessibility improvements
  - items that the Administrator determines pose or will soon pose a health or safety problem to the home owner