Bill > SB1169

Introduced Session

This bill establishes a loan fund under the jurisdiction and control of the Wisconsin Housing and Economic Development Authority for the purpose of issuing interest-free loans to first-time home buyers for costs associated with purchasing a home, including closing costs, down payment costs, mortgage insurance costs, interest rate buy-down, and principal reduction. The maximum loan amount is $35,000 or 10 percent of the purchase price of the home, whichever is less. WHEDA may adjust the maximum loan amount to reflect market conditions. WHEDA may, in its discretion, defer payments on a loan. Under the bill, an individual is eligible for a loan if the individual has either never owned a home or owned a home but lost it due to foreclosure, the individual’s household income is at or below 100 percent of the area median income at the time of receiving the loan, the individual completes a home buyer education course, the individual agrees to occupy the home as a primary residence, the individual agrees to purchase the home within the maximum loan amount established by the Federal Housing Administration for the county in which the home is located and agrees to personally contribute no less than $1,000 toward down payment costs or closing LRB-6623/1 MDE:cdc&wlj 2025 - 2026 Legislature SENATE BILL 1169 costs, and the individual agrees to finance the home using a WHEDA-administered first mortgage program. WHEDA must forgive 12.5 percent of the original loan amount or the entirety of the remaining loan amount, whichever is less, 2.5 years after the loan is provided; 25 percent of the original loan amount or the entirety of the remaining loan amount, whichever is less, 5 years after the loan is provided; 37.5 percent of the original loan amount or the entirety of the remaining loan amount, whichever is less, 7.5 years after the loan is provided; and 50 percent of the original loan amount or the entirety of the remaining loan amount, whichever is less, 10 years after the loan is provided. The total amount of unpaid principal on a loan will become due and payable to WHEDA if the recipient sells the home, the home ceases to be the recipient’s primary residence, the recipient subjects the home to an ineligible refinance, or the recipient otherwise violates the loan agreement. WHEDA may forgive the amount due in the event of financial or personal hardship. If in any application cycle there are insufficient moneys available in the first- time home buyer purchasing assistance fund to fund all applications that meet the requirements of the bill and are otherwise acceptable to WHEDA, WHEDA is required to prioritize funding loans for purchasing single-family housing. Because this bill may increase or decrease, directly or indirectly, the cost of the development, construction, financing, purchasing, sale, ownership, or availability of housing in this state, the Department of Administration, as required by law, will prepare a report to be printed as an appendix to this bill. For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

Committee Categories

Dora Drake (D)*,  Dianne Hesselbein (D)*,  Sarah Keyeski (D)*,  Chris Larson (D)*,  Kelda Roys (D)*,  Jeff Smith (D)*,  Mark Spreitzer (D)*,  Bob Wirch (D)*,  Deb Andraca (D),  Margaret Arney (D),  Mike Bare (D),  Brienne Brown (D),  Ryan Clancy (D),  Ben DeSmidt (D),  Steve Doyle (D),  Jodene Emerson (D),  Joan Fitzgerald (D),  Russell Goodwin (D),  Kalan Haywood (D),  Andrew Hysell (D),  Alex Joers (D),  Karen Kirsch (D),  Darrin Madison (D),  Renuka Mayadev (D),  Vincent Miresse (D),  Supreme Moore Omokunde (D),  Greta Neubauer (D),  Lori Palmeri (D),  Pricilla Prado (D),  Ann Roe (D),  Joe Sheehan (D),  Christine Sinicki (D),  Lee Snodgrass (D),  Shelia Stubbs (D),  Lisa Subeck (D),  Sequanna Taylor (D),  Angelito Tenorio (D),  Randy Udell (D),  Robyn Vining (D), 

Fiscal estimate received (on 04/07/2026)

Official Document