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  (The link to the online home buyer course has not changed and can stay)

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.