City of Madison's Home Buyer's programs

By Laura Salinger

    Having been called everything from sluggish to an outright crisis, the national housing market continues to struggle in the wake of
declining home purchases and rising foreclosures. Likewise, the word 'recession' lurks in consumers’ minds as buying slows down, gas
prices increase, and wallets tighten. It is a trying time for those working to increase home buying opportunities for first-time homebuyers.
Yet, City of Madison Economic Revitalization Supervisor Percy Brown remains optimistic. After all, he says, mortgage interest rates
continue to decline and that popular home buying time (spring) is on its way.
   "I am somewhat hopeful," Brown said about the housing market. "Now that we are entering the spring season and interest rates have
dropped, we may see a little upswing."
   Yet, even Brown admits it hasn't been pretty as of late. "Right now, home buying activity is really down," he said. "Even in Madison,
we are struggling with the housing market."
   While Madison has not been nearly as hard hit as some cities, the housing market here has not escaped hardship. For a man charged
with overseeing a number of home-buying initiatives in Madison, it has been a challenging time. Yet, Brown remains a strong proponent
of the notion that increased home buying is one of the most effective ways to promote economic sustainability in the community.
   "Every time people buy homes or improve their businesses, it is economic revitalization," he said.
Increased homeownership is also an effective way to create strong and safe neighborhoods. "It's a proven fact that owner-occupied
housing stabilizes a neighborhood," Brown said. "By allowing low-income families to own their own homes, we are creating
strengthened neighborhoods."
   So while people tighten up their wallets, Brown is encouraging them to do just the opposite. He wants them to buy; a home that is.
And even in a sluggish economy, he asserts that home buying is never a mistake.
   "Investing in buying a home is still the most guaranteed and safest investment anyone could make," Brown said.
Regardless of a rocky housing market, Brown is correct. If one is safe and smart (avoiding, by all means, predatory lending practices), it is
almost never a bad time for a first-time home buyer. While home purchases in Wisconsin have declined, home values have not.
According to the Wisconsin Realtors Association, Wisconsin home sales declined 10.8 percent in 2007, but median prices rose 0.2
percent.   
   So, Brown is encouraging potential homebuyers to take the plunge and purchase a home. Madison offers a number of ways to help.
Madison's Office of Economic Revitalization administers a number of programs that support first-time, low-income homebuyers in order
to spur on a healthy economy:

The HOME-BUY Program
    Madison's HOME-BUY program is a down payment/closing cost assistance loan program that provides a no-interest and no-monthly
payment mortgage loan to eligible first-time homebuyers. The loan is due when the property is no longer owner-occupied or the first
mortgage is refinanced. The program helps offset the extra costs incurred when a first-time homebuyer purchases a home, including
appraisal fees, credit report fees, settlement closing costs, title insurance, property inspection, and other costs.
"A few years ago, the number one barrier to homeownership was the down payment," Brown said. "The down payment program, to me,
has really been a key to opening the door to home-owning opportunities."

The Homebuyer's Assistance (HBA) Loan Program
    This city program provides loans to eligible borrowers to help finance a portion of the acquisition, rehabilitation, and closing costs on
a property. Under HBA there is a variety of different loans including an installment loan, deferred payment loans, matching down
payment funds, and short-term financing for developers.

The Housing Rehabilitation Services Program Deferred Payment Loans
This program provides financial incentives for homeowners to upgrade eligible housing units in need of rehabilitation, thus resulting in
an improved housing stock. Loans are provided to eligible families, with no required monthly payments (provided the owner's income
continues to meet program guidelines.)  
   "If people are investing in their homes, they are bettering themselves economically and benefiting the community," Brown asserted.
"In the areas where we are promoting home ownership and home improvement projects, we are really seeing improvement in the city's
housing stock."
   In addition to housing initiatives, Madison's Office of Economic Revitalization also provides grants to small businesses with their
Facade Improvement Grant program and they help staff a number of CDA (Community Development Authority) redevelopment projects.
They also work in conjunction with other departments and organizations that help low-income, first-time homebuyers. Other area
programs that aid first-time home buyers include the Dane County Housing Authority's Down Payment Assistance program, Madison's
American Dream down payment and closing cost deferred loan program, and WHEDA's Home Plus program.
   For more information on these and other programs, visit Dane County's Home Buyer's Round Table at www.homebuyersrountable.org.
Laura Salinger is a
freelance writer based in
Madison, Wis.