Homebuyer Programs:
Downpayment/Closing Cost Loans and Housing Rehabilitation Loans
Eau Claire County Housing Authority Homebuyer Assistance Programs
The Housing Organization Direct Assistance Program (HODAP), Housing Cost Reduction Initiative (HCRI) and HOME programs are funded by the State of Wisconsin Department of Commerce, Division of Housing and Community Development, to reduce the housing costs of low and moderate – income households and to encourage the purchase of affordable housing units. The programs use state and federal funds to help people stabilize their housing situation, enabling individuals and families to obtain affordable housing.
Program participants are responsible for finding a suitable housing unit. All housing units to be assisted must be located in eau Claire County, but outside the city limits of Eau Claire; and they must meet federal Housing Quality Standards and local standards before receiving assistance or upon completion of rehabilitation, if applicable.
In addition to meeting income and other eligibility criteria, all program participants must be in financial need of the assistance requested, as determined by the Housing Authority.
Applicants who owe money to the Eau Claire City County Housing Authority or any other housing authority are not eligible to participate in Housing Authority-funded programs until that debt has been paid in full.
HODAP, HCRI and/or HOME beneficiaries may not again receive assistance from the same funding source for three years from the date of prior assistance.
Downpayment & Closing Cost Loans
No-interest, deferred-payment loans up to $5,000 are made to eligible renters to obtain a first mortgage for home purchase. Monthly income cannot exceed 80% of the county’s median income. Preference is given to families with incomes less than 50% of the are median.
Buyers with incomes less than 50% of the area median must contribute at least $500 of their own funds; buyers with incomes between 51-80% of the are median must contribute at least $1000 of their own funds.
Funds will be disbursed directly to the lender, on the buyer’s behalf, at the time of loan closing. Eligible closing costs include; loan origination fees, loan discount points, appraisal costs, credit report, title search and preparation charges, title insurance, transfer fees, recording costs, and surveyor charges.
Total monthly housing costs and other indebtedness will be evaluated and must be determined to be affordable. Total indebtedness in the property may not exceed 100% of the property’s fair market value at time of closing. The mortgage interest rate may not be 2% or more above the average local lending rate for similar type loans.
The loan must be repaid in full if any interest in the property is transferred other than to a spouse, the housing unit ceases to be the borrower’s principal place of residence, the assisted household does not stay current on payment of their property taxes, or fails to maintain adequate property insurance.
Buyers must complete pre-purchase education, including real estate transactions & disclosures, the purchase process, Fair Housing Laws, insurance, budgeting, and payment affordability.
Housing Authority of the City of Eau Claire:
Downpayment/Closing Cost Assistance Program
The Downpayment/Closing Cost Assistance Program will provide assistance to low to moderate-income families buying their first home. The amount of assistance will be up to the lesser of $3,300 or 5% of the purchase price, contingent upon the homebuyer contributing at least $500 of their own money to the down payment and/or closing costs. The average fee ($200) charged for a professional home inspection will be in addition to the grant amount, as the inspection is a program requirement.
The down payment/closing cost assistance will be in the form of a Deferred Payment Loan and will be secured with a second mortgage. HUD requires a minimum of a five-year affordability period for the Down Payment Closing Cost Assistance Program. The terms are as follows: 1) 0% interest; 2) repayment is deferred until the owner either sells or transfers title to another owner, the property is no longer fully occupied by the original purchasers, or five years, whichever comes first. If the homeowner is still occupying the home at the end of five (5) years, the loan is forgiven. (During the five-year affordability period, one-fifth of the down payment/closing cost assistance is forgiven in each of the five years of homeownership, until the loan is forgiven;) 3) During the five-year term of this agreement, the Housing Authority will not subordinate to the financing or refinancing of primary and/or secondary mortgages. Note: Down Payment/Closing Cost Assistance includes only the grant amount, not the fee for the home inspection.
Selection Criteria
Homebuyer Housing Rehabilitation Loans
The purpose of the Housing Rehabilitation Loan Program is to make loans to help bring substandard housing up to decent, safe, and sanitary conditions and to improve neighborhood conditions overall. It is hoped that the program will also stimulate neighborhood reinvestment and revitalization.
No-interest, deferred payment housing rehabilitation loans of up to $12,000 are available to low and moderate-income homebuyers who also borrow down payment and closing cost funds to finance up to 100 percent of the cost to remove code violations, improve structural conditions, prolong the life expectancy and otherwise improve living conditions, of the housing they are purchasing.
Eligible repairs include siding, windows, plumbing, heating, electrical, roofs, and handicapped accessibility. Monthly payments are not required for this program and the loans are not repaid until the property is sold or title to the property is transferred.
Eau Claire County Income Limits
Effective February 13, 2008 subject to change)
AMI=Area median income
*Preference is given to very-low income families
Other Housing Authority Programs
Housing Choice Rental Vouchers – Rent subsidies and paid to landlords on behalf of very-low income families. The subsidy-amount is based on the family’s income. Housing chosen by the family must meet minimum Housing Quality Standards.
Public Housing– Large, scattered-site, single-family low-rent housing is owned by the Housing Authority. Occupants must participate in the FSS Program and may be able to purchase the home they occupy if successful in achieving self-sufficiency.
Family Self-Sufficienty (FSS)- Supportive services are coordinated to assist families to achieve economic independence and self-sufficiency. This program is operated with the Housing Voucher and Public Housing Programs.
Security Deposit Loans -No-interest security deposit loans up to $500 will be made to eligible renters. Participants must make monthly payments to the Housing Authority of at least $25. Preference is given to families also participating in the rent subsidy program. Security deposit funds are disbursed directly to the landlord on behalf of the family.
Emergency Rehabilitation- No-interest loans are available to low-and moderate-income households of up to $2500 to make critical repairs to their homes which, if not completed, may jeopardize the immediate health and safety of the home’s occupants. Monthly payments are required to repay these program funds.
Housing Rehabilitation- No-interest, deferred payment loans are made to owners, buyers and rental owners for up to 100% of the cost of housing rehabilitation to remove code violations, improve structural conditions, prolong the life expectancy, and otherwise improve housing conditions. Owner and buyer loans need not be repaid until title to the property is transferred. Monthly interest-bearing payments are required for rental loans.
Financial & Homeownership Counseling- Counseling programs help families who wish to get on track with their spending and possibly plan for long term goals like home purchases. Trained staff will work with families to set up a realistic budget so they are able to stick with it. Families who are interested in homeownership can receive help to improve credit, clear up past debt, deal with bankers and determine down payments and closing cost funds needed. Staff will help clients understand and determine future housing needs and affordability along with the responsibilities of homeownership.
Other- The Housing Authority also provides assistance in the forms of briefings, housing and financial counseling sessions, landlord outreach, and information services to aid with housing needs.
For more information, or to apply for any of the County Housing Authority’s Programs, contact:
Eau Claire County Housing Authority
Courthouse, Room 1590
721 Oxford Ave
Eau Claire, WI 54703
715.839.6240
Fair Housing & Equal Opportunity
Under the federal, state and local Fair Housing Laws, as amended, it is illegal to treat any person unequally because of sex, race, color, handicap/disability, religion, national origin, sex or familial status, lawful source of income, age, or ancestry, or sexual orientation in the connection with the sale or rental of most housing and any vacant land offered for residential construction use.
In you believe you have been discriminated against for any of these reasons, you may file a complaint with the Eau Claire Housing Authority of the Equal Rights Division at either of the following offices:
Downpayment/Closing Cost Loans and Housing Rehabilitation Loans
Eau Claire County Housing Authority Homebuyer Assistance Programs
The Housing Organization Direct Assistance Program (HODAP), Housing Cost Reduction Initiative (HCRI) and HOME programs are funded by the State of Wisconsin Department of Commerce, Division of Housing and Community Development, to reduce the housing costs of low and moderate – income households and to encourage the purchase of affordable housing units. The programs use state and federal funds to help people stabilize their housing situation, enabling individuals and families to obtain affordable housing.
Program participants are responsible for finding a suitable housing unit. All housing units to be assisted must be located in eau Claire County, but outside the city limits of Eau Claire; and they must meet federal Housing Quality Standards and local standards before receiving assistance or upon completion of rehabilitation, if applicable.
In addition to meeting income and other eligibility criteria, all program participants must be in financial need of the assistance requested, as determined by the Housing Authority.
Applicants who owe money to the Eau Claire City County Housing Authority or any other housing authority are not eligible to participate in Housing Authority-funded programs until that debt has been paid in full.
HODAP, HCRI and/or HOME beneficiaries may not again receive assistance from the same funding source for three years from the date of prior assistance.
Downpayment & Closing Cost Loans
No-interest, deferred-payment loans up to $5,000 are made to eligible renters to obtain a first mortgage for home purchase. Monthly income cannot exceed 80% of the county’s median income. Preference is given to families with incomes less than 50% of the are median.
Buyers with incomes less than 50% of the area median must contribute at least $500 of their own funds; buyers with incomes between 51-80% of the are median must contribute at least $1000 of their own funds.
Funds will be disbursed directly to the lender, on the buyer’s behalf, at the time of loan closing. Eligible closing costs include; loan origination fees, loan discount points, appraisal costs, credit report, title search and preparation charges, title insurance, transfer fees, recording costs, and surveyor charges.
Total monthly housing costs and other indebtedness will be evaluated and must be determined to be affordable. Total indebtedness in the property may not exceed 100% of the property’s fair market value at time of closing. The mortgage interest rate may not be 2% or more above the average local lending rate for similar type loans.
The loan must be repaid in full if any interest in the property is transferred other than to a spouse, the housing unit ceases to be the borrower’s principal place of residence, the assisted household does not stay current on payment of their property taxes, or fails to maintain adequate property insurance.
Buyers must complete pre-purchase education, including real estate transactions & disclosures, the purchase process, Fair Housing Laws, insurance, budgeting, and payment affordability.
Housing Authority of the City of Eau Claire:
Downpayment/Closing Cost Assistance Program
The Downpayment/Closing Cost Assistance Program will provide assistance to low to moderate-income families buying their first home. The amount of assistance will be up to the lesser of $3,300 or 5% of the purchase price, contingent upon the homebuyer contributing at least $500 of their own money to the down payment and/or closing costs. The average fee ($200) charged for a professional home inspection will be in addition to the grant amount, as the inspection is a program requirement.
The down payment/closing cost assistance will be in the form of a Deferred Payment Loan and will be secured with a second mortgage. HUD requires a minimum of a five-year affordability period for the Down Payment Closing Cost Assistance Program. The terms are as follows: 1) 0% interest; 2) repayment is deferred until the owner either sells or transfers title to another owner, the property is no longer fully occupied by the original purchasers, or five years, whichever comes first. If the homeowner is still occupying the home at the end of five (5) years, the loan is forgiven. (During the five-year affordability period, one-fifth of the down payment/closing cost assistance is forgiven in each of the five years of homeownership, until the loan is forgiven;) 3) During the five-year term of this agreement, the Housing Authority will not subordinate to the financing or refinancing of primary and/or secondary mortgages. Note: Down Payment/Closing Cost Assistance includes only the grant amount, not the fee for the home inspection.
Selection Criteria
- Applicants may not have owned a home for 3 years from the time of making application.
- Family gross income may not exceed 80% of the area median income as defined by U.S. Department of HUD.
- An interview with the client will be conducted by Housing Authority to confirm income, per HUD requirements.
- Value of applicant's capital assets cannot exceed $5,000.
- Purchase/appraised price of home may not exceed $135,035.
- Home must be located within the city limits of Eau Claire and will be limited to single family owner-occupied homes only. (Tenant-occupied units do not qualify due to relocation restrictions)
- The home to be purchased must meet Federal Housing Quality Standards, must be real property, land plus improvements (no trailers), and cannot have been previously purchased in the last 5 years with the assistance of Federal HOME funds.
- Applicant must have participated in/completed "budget counseling".
- Applicant must complete a short Follow-up Survey.
- Applicant will be required to sign a Second Mortgage prior to the release of funds.
- The Down Payment Closing Cost Assistance Loan has a five-year affordability period.
- Applicant will be required to obtain a professional home inspection prior to closing and provide a copy of the appraisal. A $200 inspection fee will be added to the grant amount to help pay for the inspection.
- Applicants will be processed on a first-come, first-served basis until the funds are depleted.
- Preference will be given to City of Eau Claire Housing Authority tenants.
- The Loan to Value Ratio including the Down Payment Loan may not exceed 100% of the appraised value.
Homebuyer Housing Rehabilitation Loans
The purpose of the Housing Rehabilitation Loan Program is to make loans to help bring substandard housing up to decent, safe, and sanitary conditions and to improve neighborhood conditions overall. It is hoped that the program will also stimulate neighborhood reinvestment and revitalization.
No-interest, deferred payment housing rehabilitation loans of up to $12,000 are available to low and moderate-income homebuyers who also borrow down payment and closing cost funds to finance up to 100 percent of the cost to remove code violations, improve structural conditions, prolong the life expectancy and otherwise improve living conditions, of the housing they are purchasing.
Eligible repairs include siding, windows, plumbing, heating, electrical, roofs, and handicapped accessibility. Monthly payments are not required for this program and the loans are not repaid until the property is sold or title to the property is transferred.
Eau Claire County Income Limits
Effective February 13, 2008 subject to change)
Family Size |
*Very-Low Income Limits (50% AMI) |
Moderate Income Limits (80% AMI) |
1-Person |
$20,295 |
$33,550 |
2-Person |
$23,950 |
$38,300 |
3-Person |
$26,950 |
$43,100 |
4-Person |
$29,950 |
$47,100 |
5-Person |
$32,350 |
$51,750 |
6-Person |
$34,750 |
$55,500 |
7-Person |
$37,150 |
$59,400 |
8-Person |
$39,550 |
$63,250
|
AMI=Area median income
*Preference is given to very-low income families
Other Housing Authority Programs
Housing Choice Rental Vouchers – Rent subsidies and paid to landlords on behalf of very-low income families. The subsidy-amount is based on the family’s income. Housing chosen by the family must meet minimum Housing Quality Standards.
Public Housing– Large, scattered-site, single-family low-rent housing is owned by the Housing Authority. Occupants must participate in the FSS Program and may be able to purchase the home they occupy if successful in achieving self-sufficiency.
Family Self-Sufficienty (FSS)- Supportive services are coordinated to assist families to achieve economic independence and self-sufficiency. This program is operated with the Housing Voucher and Public Housing Programs.
Security Deposit Loans -No-interest security deposit loans up to $500 will be made to eligible renters. Participants must make monthly payments to the Housing Authority of at least $25. Preference is given to families also participating in the rent subsidy program. Security deposit funds are disbursed directly to the landlord on behalf of the family.
Emergency Rehabilitation- No-interest loans are available to low-and moderate-income households of up to $2500 to make critical repairs to their homes which, if not completed, may jeopardize the immediate health and safety of the home’s occupants. Monthly payments are required to repay these program funds.
Housing Rehabilitation- No-interest, deferred payment loans are made to owners, buyers and rental owners for up to 100% of the cost of housing rehabilitation to remove code violations, improve structural conditions, prolong the life expectancy, and otherwise improve housing conditions. Owner and buyer loans need not be repaid until title to the property is transferred. Monthly interest-bearing payments are required for rental loans.
Financial & Homeownership Counseling- Counseling programs help families who wish to get on track with their spending and possibly plan for long term goals like home purchases. Trained staff will work with families to set up a realistic budget so they are able to stick with it. Families who are interested in homeownership can receive help to improve credit, clear up past debt, deal with bankers and determine down payments and closing cost funds needed. Staff will help clients understand and determine future housing needs and affordability along with the responsibilities of homeownership.
Other- The Housing Authority also provides assistance in the forms of briefings, housing and financial counseling sessions, landlord outreach, and information services to aid with housing needs.
For more information, or to apply for any of the County Housing Authority’s Programs, contact:
Eau Claire County Housing Authority
Courthouse, Room 1590
721 Oxford Ave
Eau Claire, WI 54703
715.839.6240
Fair Housing & Equal Opportunity
Under the federal, state and local Fair Housing Laws, as amended, it is illegal to treat any person unequally because of sex, race, color, handicap/disability, religion, national origin, sex or familial status, lawful source of income, age, or ancestry, or sexual orientation in the connection with the sale or rental of most housing and any vacant land offered for residential construction use.
In you believe you have been discriminated against for any of these reasons, you may file a complaint with the Eau Claire Housing Authority of the Equal Rights Division at either of the following offices:
| Equal Rights Division 201 E. Washington Ave. Madison, WI 53702 608.266.6860 |
Equal Rights Division 819 N Sixth St Milwaukee, WI 53203 414.224.4384 |
Homebuyer Assistance Programs
Downpayment & Closing Cost Loans
Downpayment/Closing Cost Assistance
Homebuyer Housing Rehabilitation Loans
Other Housing Programs
Fair Housing / Equal Opportunity
