Down Payment Assistance for First Time Homebuyers
Home-Buy the American Dream (HBAD) is a down payment and closing cost assistance program aimed at supporting low-to-moderate income homebuyers purchase a single-family home, condominium, or one-half of a duplex in the City of Madison. Applications for this program must be submitted on your behalf by a first mortgage lender. Qualified homebuyers may be eligible for up to $35,000.
For more information about the program and eligibility requirements, please review the Home-Buy the American Dream Fact Sheet (English) (Hmoob) (Español). (updated 05/20/2024)
- Frequently Asked Questions (updated 05/20/2024)
- Education and Counseling Requirements
Lenders
Home-Buy the American Dream made the following changes effective May 1, 2023:
- Properties outside the City of Madison are no longer eligible for funding.
- The combined loan-to-value limit will increase to 105%.
- Applicants who do not invest in any financial retirement accounts, may request a waiver for liquid asset requirements.
The typical processing time for Home-Buy the American Dream is 20 business days.
At the City’s expense, a Housing Quality Standards (HQS) inspection will be ordered on all properties. Properties constructed prior to 1978 will also receive a Lead-Based Paint inspection. Inspections will be conducted through the City of Madison’s contracted inspector. Any failed health and safety items must be repaired prior to closing or 60 days after loan closing, if funds are escrowed.
Home-Buy the American Dream cannot be used with other City-funded down payment programs, such as Movin' Out or Habitat for Humanity.
Home-Buy the American Dream Handbook (updated 06/2024)
Lenders, please submit loan packages securely via email to homeloans@cityofmadison.com.
Application Appeal Procedure
If an application is rejected by the Housing Rehabilitation Specialist, Community Development Specialist and/or the Community Development Grants Supervisor, the applicant will be given written notification of the rejection and the basis for the rejection.
The applicant will also be informed, in writing, of their rights. If the applicant, within 30 days of the notification of rejection, files a written appeal request with the Community Development Director/Grants Supervisor, they will then schedule with the CDBG Committee to hold an appeal hearing at the next CDBG Committee meeting.
The applicant’s appeal request must include the applicant’s name, address, name of the loan program -- the Home-Buy the American Dream Loan -- and a short summary of why they are requesting the appeal. A written determination based upon the appeal hearing will be provided to the applicant within 30 days following the hearing.
The appeal should be sent to:
City of Madison
Community Development Director/Grants Supervisor
P.O. Box 2627
Madison, WI 53701-2627
Downloadable forms
Home-Buy the American Dream Brochure (also available in Hmoob, Español)
Home-Buy the American Dream Checklist