Updated · Mike Certo, NMLS #260555
Wisconsin Down Payment Assistance Programs Guide
Wisconsin's down payment help runs through WHEDA, and it arrives as a second mortgage behind your main loan. The catch is that WHEDA has two of them, and they repay in completely different ways. Easy Close Advantage you pay back every month. Capital Access sleeps until you sell. This page digs into the mechanics: how each second is structured, what triggers repayment, the county limits, and how the WHEDA tax credit stacks on top.
How does WHEDA down payment assistance actually work?
The help is never a standalone loan. WHEDA places it as a second mortgage behind your first, so it fills the down payment and closing-cost gap while the primary loan does the heavy lifting. Two seconds carry the volume: Easy Close Advantage, which you repay on a monthly schedule, and Capital Access, which defers with no payment. You pick one, not both. Underneath sits a WHEDA Advantage first mortgage, either the conventional version or the FHA version.
What does Easy Close Advantage give you, and how do you repay it?
Easy Close Advantage lends between a $1,000 minimum and 6% of the purchase price. On a $280,000 Green Bay home, that 6% ceiling is $16,800 toward down payment and closing. Here is the part national pages get wrong: it is a repayable second, not forgivable. It amortizes over a ten-year term with a monthly payment set at the same rate as your first mortgage. You start paying it the month after closing. Because you pay it down over time, whatever principal is left is the only balance that settles when you sell or refinance.
How is Capital Access different from Easy Close?
Capital Access is the deferred one. It lends a flat $7,500 at zero percent, and it carries no monthly payment at all. The balance sits quietly behind your first mortgage and comes due only when you sell, refinance, or pay the first loan off in full. Your only out-of-pocket cost to set it up is a recording fee, and it can reach up to 105% combined loan-to-value. Two limits matter. It stops at $7,500, well short of Easy Close's 6%, and the 2026 allotment is capped at 78 loans starting January 15, 2026, first come first served.
Easy Close vs Capital Access, side by side
The two seconds solve the same gap in opposite ways. One you pay monthly, one you defer. This is the comparison Mike walks through on almost every WHEDA call.
| Feature | Easy Close Advantage | Capital Access |
|---|---|---|
| Amount | $1,000 min, up to 6% of price | $7,500 flat |
| Structure | Repayable second | Deferred second |
| Monthly payment | Yes, over 10 years | None |
| Interest | Same rate as your first mortgage | 0% |
| When it settles | Paid monthly; remaining principal at payoff | Full $7,500 at sale, refinance, or payoff |
| 2026 availability | Standard | Capped at 78 loans from Jan 15, 2026 |
| Pairs with | Advantage Conventional or FHA | Advantage Conventional or FHA |
What first mortgage does the help ride behind, and what are the limits?
The down payment second sits behind a WHEDA Advantage first mortgage. Advantage Conventional needs a 620 middle score; Advantage FHA needs 640 and the standard 3.5% borrower investment. Both are 30-year fixed loans, neither requires you to be a first-time buyer, though first-time buyers finish a homebuyer education course, and both hold to WHEDA's county income ceilings and a purchase-price ceiling. As of the June 13, 2026 tables, the income line varies by county and family size.
| Area | Income (1 to 2 people) | Income (3 or more) |
|---|---|---|
| Dane County / Madison | $135,300 | $155,595 |
| Milwaukee County | $108,400 | $124,660 |
| Most rural counties | $105,800 | $121,670 |
WHEDA income limits, effective June 13, 2026. The non-target purchase-price ceiling is $566,364 on a one-unit home, higher in target areas. These are volatile; confirm your county's current figure at wheda.com before you rely on it.
Does WHEDA offer a mortgage tax credit on top of the second?
Yes, and it is worth adding to the plan because it does not fill the same slot as the down payment second. WHEDA's MCC, branded Tax Advantage, returns a share of your annual mortgage interest as a federal income-tax credit, capped at $2,000 a year for the life of the loan. The rate is 25% of interest statewide, rising to 40% for military veterans and buyers in HUD target areas. Confirm the current rate at WHEDA, since the rate matrix predates the newest sheets. Because it is a tax credit rather than a lien, it can ride alongside your WHEDA first mortgage and the down payment second.
How does WHEDA help layer with FHA, conventional, VA, and USDA?
The second sits on top; the first mortgage decides most of the terms. WHEDA Advantage FHA is the usual base for a thinner credit file or a slim down payment, with a 2026 Wisconsin floor of $541,287 in every county except Pierce and St. Croix, which run $552,000 inside the Twin Cities metro. WHEDA Advantage Conventional fits once your score clears the low 600s, because its mortgage insurance cancels at 20% equity. VA is zero down for eligible veterans. Most rural Wisconsin qualifies for zero-down USDA, with the Milwaukee, Madison, and Green Bay metro cores excluded.
What triggers repayment, and what are the limits?
Three events settle a WHEDA second: selling the home, refinancing the first mortgage, or paying the first loan off. Easy Close Advantage is already being paid down each month, so only the remaining principal comes due at that point. Capital Access was deferred with no payments, so the full $7,500 settles all at once. Neither is a grant, and neither is forgivable. Both hold to WHEDA's county income ceiling and the $566,364 non-target purchase-price ceiling, and you cannot combine the two seconds on one purchase.
Which WHEDA option fits which buyer?
If you need real dollars to clear the down payment, Easy Close Advantage does more work, up to 6% of the price, at the cost of a second monthly payment for ten years. If your gap is small and you would rather owe nothing month to month, Capital Access is the cleaner choice, provided the 78-loan cap still has room for 2026. A buyer on the fence between the two often comes down to budget: can you carry the extra payment, or do you want it deferred? Layer the Tax Advantage MCC on either one and you pick up a yearly federal tax credit on top.
Related Wisconsin guides
- Wisconsin first-time home buyer guide
- Wisconsin transfer fee and closing costs
- All Wisconsin loan programs
- Talk to Mike about your scenario
Wisconsin down payment assistance FAQ
Is WHEDA down payment help a grant?
Mostly no. WHEDA offers two down payment loans, and neither is an outright grant. Easy Close Advantage is a repayable ten-year second mortgage with a monthly payment. Capital Access is a $7,500 deferred second at zero percent with no monthly payment, but it is still repaid when you sell, refinance, or pay off the first mortgage. National pages that call Easy Close 6% forgivable are wrong.
How does WHEDA Easy Close Advantage get repaid?
Easy Close Advantage amortizes over ten years, so you make a monthly payment on it from the start, at the same rate as your first mortgage. It ranges from a $1,000 minimum up to 6% of the purchase price. Because you pay it down month by month, the only balance that settles at sale or refinance is whatever principal is left. It is a real second lien, not forgiven money.
How is WHEDA Capital Access different from Easy Close?
Capital Access is deferred, Easy Close is repayable each month. Capital Access lends a flat $7,500 at zero percent with no monthly payment, and the balance sleeps until you sell, refinance, or pay off the first mortgage. Easy Close lends up to 6% of the price but carries a ten-year monthly payment. Capital Access is also capped at 78 loans starting January 15, 2026, so it can run out.
Does WHEDA offer a mortgage tax credit?
Yes. WHEDA's MCC, called Tax Advantage, returns a share of your annual mortgage interest as a federal income-tax credit, capped at $2,000 a year for the life of the loan. The credit rate is 25% statewide and 40% for military veterans and buyers in HUD target areas; confirm the current rate at WHEDA. It is a tax credit, not a second mortgage, so it can pair with your WHEDA first mortgage.
What triggers repayment of WHEDA down payment help?
Selling the home, refinancing the first mortgage, or paying the first loan off in full. For Easy Close Advantage you already pay monthly, so only the remaining principal settles at that point. For Capital Access the full $7,500 comes due, since it was deferred with no payments. Easy Close carries a monthly payment at your first mortgage's rate, while Capital Access is a flat zero percent.