Down Payment Assistance Loans

Program Overview

• Type of Loan: 2nd Mortgage (CWCAC is not the Superior Mortgage lender)
• Eligible Use: Lender-required down payment / closing costs
• Loan Amounts: Fixed increments of $1,000 up to $10,000
• Interest Rate: 2.5% Fixed
• Repayment Terms: Monthly payments — 1 year per $1,000 borrowed

Example:

• $1,000 → 1-year term at 2.5%
• $5,000 → 5-year term at 2.5%
• $10,000 → 10-year term at 2.5%
• Only whole $1,000 amounts allowed. No partial amounts (e.g., $7,350).

DPA PROGRAM SUMMARY

Property Eligibility

• Location: Adams, Columbia, Dodge, Juneau, Sauk Counties
• Property Type: Owner-occupied, residential, single-family homes (No new construction, condos, duplexes, mobile/manufactured homes, leased lots, or land contracts)
• Condition: Move-in ready
• ADU Restrictions: Must be and maintain primary residence. No part of property rental or partial rentals allowed.

Buyer Eligibility

• Limitation: First-time home buyers (or no home ownership in the last 10 years)
• Minimum Credit Score: 640
• Income Limit: 80% of County Median Income (based on property location)
• Borrower Contribution: $1,000 minimum from borrower’s own funds (Not financed or gifted. May be used for earnest money, inspection, HOI premium, cash to close.)
• Borrower Asset Limitations: Excessive assets may disqualify (401K, IRA, CDs, Bonds, MM accounts)
• PITI & Debt Ratios:
  • Housing (PITI) ≤ 30% of gross income
  • Total Debt (incl. PITI) ≤ 44% of gross income

2025 INCOME LIMITS SUMMARY
80% INCOME LIMITS

Persons In Family

Loan Compatibility

• Eligible First Mortgage Types:
  • 30-year fixed from Bank or Credit Union
  • Ineligible Loans: USDA, FHA, VA, balloon, portfolio, in-house, subprime
• Maximum Purchase Price: $275,000 (income-dependent)
• Cash Back at Closing: Not allowed
• Predatory Lending Limitations:
  • No excessive fees or interest on Superior Mortgage
  • Superior mortgage interest may not exceed 2% above the national average

LENDER INFORMATION 

Education Requirement

Required: 6 hours of Home Buyer Education (HBE) from an approved provider
Click on this link to complete the ONLINE HOME BUYER Education Course.

Processing & Program Limitations

• Processing Time: Minimum 20 business days (No preapprovals)
• Subordination: CWCAC will not subordinate its 2nd mortgage
• Lien Position: Must remain in 2nd position — no 3rd liens
• Exclusivity: Funds cannot be used with other DPA or forgivable loan programs

Application Process

• Step 1: Obtain pre-qualification for a 30-Year Fixed Conventional Loan by a Bank or Credit Union before applying.
• Step 2: Complete and submit the Down Payment Assistance application
• Fees Due Before Closing:
  • $250 Administrative Fee
  • $30 Recording Fee (Payable to CWCAC)

• Program Example

Purchase Price: $275,000
LTV: 97% → Required down payment = $8,250
DPA Loan Provided: $10,000
Buyer Contribution: $1,000
Total Available Funds: $11,000
Surplus: $2,750 — can be used for closing costs/prepaid expenses
Note: Surplus cannot be used to reduce the first mortgage amount or provide borrower cash back.