Homebuyers must have a combined household income below 80% of County Median Income (CMI). Click to see CURRENT INCOME LIMITS (scroll down on the linked page to Winnebago County). In calculating income, add the gross (pre-tax) income amounts from all sources for all household members, excluding wages earned by minors, from financial aid, and benefits received for medical and child care*. Homebuyers must be able to afford the home purchase costs including mortgage, taxes and insurance, without spending more than 32% of their month income on these expenses. *Income calculations entail a comprehensive review of all income sources, including verifications and underwriting. Additional excluded income sources may be applicable.
The adult members of the purchasing party must complete 8 hours of approved homebuyer education training. The Winnebago Homebuyer Program administers this training in partnership with FISC. Visit our HOMEBUYER UNIVERSITY resource page for information on homebuyer preparation.
Potential homebuyers must meet high standards of financial management, consistent with standard mortgage loan underwriting principles, including: -- Current on all debt obligations, including credit cards, loans, judgements, and other debts. -- Maximum household debt of 11% (not counting housing costs) of gross monthly income. -- Demonstrated budget with ability to meet all current obligations without incurring additional debt. -- Ability to put aside a minimum monthly amount of dollars for home purchase, home maintenance and emergency savings. -- A minimum three years from most recent bankruptcy discharge. -- Completion of homebuyer education course and one-on-one financial assessment. Visit our HOMEBUYER UNIVERSITY resource page for information on homebuyer preparation.
The homebuyer will need to invest an estimated minimum of $2,100 in the purchase, while having an estimated $2,000 in set-aside emergency savings that is not spent. Homebuyers purchasing a home from the Winnebago Homebuyer Program will be eligible for downpayment support designed to make the home affordable for LMI families, including: -- $20,000 in 0% interest loans with deferred payments due at the time in which the homeowner sells, transfers possession, or no longer utilizes property as primary residence. -- $2,000 in 0% interest forgivable loan with $400 forgiven for each of the first five years of homeownership. The homebuyer is will need to qualify for first mortgage financing to cover the cost not covered by assistance and the homebuyer investment. Total monthly cost of mortgage, interest, taxes, and a $50 per month maintenance savings can not exceed 32% of gross monthly income.
All interested parties will need to complete an application with the Winnebago Homebuyer Program. Properties will be listed with a partner realtor, with information available online and home showings available. Prior to completing the application, you are encouraged to spend a few hours reviewing the homebuyer resources at our HOMEBUYER UNIVERSITY to help determine if homeownership is right for you at this time, and what steps you can take to better position yourself for successful homeownership. You can complete the Winnebago Homebuyer Program application by DOWNLOADING A COPY, filling it out and returning it to the office at 600 Merritt Avenue, Oshkosh, WI 54901. The application is valid for all Winnebago Homebuyer Program purchase assistance programs.
The Homes 4 Sale program helps to stabilize and improvement neighborhoods through the rehabilitation and sale of a home to a buyer who will utilize the home as their primary residence. The Winnebago Homebuyer Program collaborates with municipal planning staff to identify strategic locations that will have maximum impact, working to preserve owner-occupied neighborhoods while improvement the neighborhood through the investment of much needed capital into the restoration of often neglected homes. Often the units purchased require extensive repairs that prohibit a traditional homebuyer from acquiring, leaving the homes unsold for extended periods. When eventually purchased, these homes are frequently transitioned into rental units, with few of the needed repairs finished. The purchase and rehab by the Winnebago Homebuyer Program improves the property and neighborhood while creating additional home ownership opportunities.
The Winnebago Homebuyer Program and municipal partners will invest up to $350,000 between 2015 and 2024 on the rehabilitation of homes through the Homes 4 Sale program. This home rehab entails many benefits, including: -- Elimination of defects and blight from project homes. -- Removal of health hazards including lead and asbestos. -- Improvement of property values and municipal tax base. -- Support of local workforce through rehab contracts. -- Homebuyer acquires home that meets all health and safety standards, and conforms to municipal home requirements. All investment of public dollars is recovered as part of a revolving loan system that entails the repayment of assistance provided to homebuyers, with the repayment funds re-invested into new homebuyer assistance projects.
Through affordable homeownership, income restricted and LMI households who demonstrate long-term responsible financial management have the opportunity to develop equity ownership in their home. This development of an asset can serve as an important part of a family's path to self-sufficiency and long-term financial security.