Do you qualify?

1st Time Homebuyer Down Payment Assistance Program

Program Overview

The City of La Crosse’s Homebuyer Down Payment Assistance Program, funded with American Rescue Plan Act Funds (ARPA), is available to help first-time homebuyers achieve an affordable mortgage payment.

Please read before you Apply. 

Staff will work with Applicants to determine their eligibility.

To participate in the program, you must purchase a home in the City of La Crosse, qualify for a 30-year fixed mortgage and meet the eligibility requirements below.

Eligibility Requirements

• Must be a first-time homebuyer as defined by HUD.
• Have an income of 120% CMI or below.
• Maximum total cash asset of $25,000.
• Applicant must be able to obtain 30-year fixed rate mortgage financing.
• Mortgage interest rate may not be greater than 2% of the national mortgage rate average.
• Applicant required to provide a cash contribution of $1,000 or 1% of the purchase price; whichever is greater.
• Purchase price may not exceed HUD’s area median purchase price
• Homebuyers must participate in a HUD approved First-time Homebuyer Education Class.
• May not be paired with other Down Payment Assistance (DPA) grant or forgivable loan programs.
• Ineligible properties include those conveyed with a land contract, rent or lease-to-own properties, mobile homes, homes that are not located in the City of La Crosse
• Homes must meet the minimum housing quality standards defined by the US Department of Housing and Urban Development Terms
• Sign a 5-year owner occupied deed restriction if the grant amount is between $1-$15,000 and a 10-year owner occupied deed restriction if the grant amount is between $15,001-$25,000.
• Grant amounts are based on the applicant’s household income.

Applicants that earn:

• 80% CMI or less may be eligible to receive a grant up to 20% of the purchase price
• 81-100% CMI may be eligible to receive a grant up to 15% of the purchase price
• 101-120% CMI may be eligible to receive a grant up to 10% of the purchase price
• Maximum DPA grant is $25,000

Applicant has 90 days from grant award date to provide the City of La Crosse Community Development office with a signed offer to purchase.

Mortgage payments must be affordable to the Buyer. Monthly payments cannot exceed 30% of the applicant’s income. Maximum overall debt to income ratio cannot exceed 43%.

A home inspection must be performed on the property and submitted to the City Community Development Office, to ensure the property is safe and sanitary.

Applicant may not receive cash back on the purchase.

1. Actual income from assets will be counted towards the household’s income.

2. Current limits are $214,000 for existing housing and $267,000 for newly constructed housing.

More information at HUD:   

https://www.hudexchange.info/resource/2312/home-maximum-purchase-price-after-rehab-value/

https://hudgov-answers.force.com/housingcounseling/s/