Purchase/Rehab Program

How it works

The HOME Consortium Purchase/Rehab Program helps low- and moderate-income households buy a home and make qualified repairs at the same time. The program is offered in Jefferson, Ozaukee, Washington, and Waukesha Counties.

The program provides two loans, both closed at the time of home purchase:

• a Down Payment Assistance Loan (DPA)
• a Homeowner Rehabilitation Deferred Loan

The DPA is forgivable at a rate of 20% per year over five years, as long as the homeowner remains in the home and maintains it as a primary residence.

What the money covers

The DPA can be used for down payment and/or closing costs.

The rehab loan funds qualified home repairs. Priority activities include repairs to mechanical or structural items that present an imminent health and safety problem, including:

• roofs
• mechanical systems, such as furnaces and hot water heaters
• plumbing
• water or water/sewer laterals in disrepair
• windows in disrepair
• foundations
• siding
• improvements to the interior of the home in bathrooms and kitchens
• any accessibility improvements
• items the Administrator determines pose, or will soon pose, a health or safety problem to the homeowner

After repairs are completed, all homes must meet HOME Consortium Code Requirements, or additional work will be required.

Amounts and matching

• DPA loan: up to $10,000
• DPA forgiveness: 20% per year over five years, if the homeowner remains in the home and maintains it as a primary residence
• Rehab loan: up to $14,999
• Rehab loan interest rate: 0%
• Monthly payments: none
• Rehab loan repayment: due upon sale or transfer of the property
• Home value limit: the purchase price plus rehab costs must be below HUD After-Rehab Value limits for the county; the page says these limits are updated annually by HUD and lists effective September 1, 2024 values for each county
  • Jefferson: Existing $274,000; New $337,000
  • Ozaukee: Existing $380,000; New $385,000
  • Washington: Existing $346,000; New $385,000
  • Waukesha: Existing $390,000; New $440,000

How to apply

Eligible homebuyers apply through a participating lender of their choice. The lender receives a loan commitment from the HOME Consortium program administrator once income is verified.

The process described on the page includes:

• the home is inspected by the HOME Consortium’s qualified inspector to identify violations of HOME Consortium Code Requirements
• any violations must be fixed
• the homeowner obtains bids for the rehab work from contractors
• the DPA and rehab loan are closed at the applicant’s home purchase closing
• the new homeowner has a maximum of 6 months to complete repairs after the loan is closed
• Waukesha County staff work with the homeowner to obtain bids and monitor construction until work is finished
• another inspection is required to ensure the work meets code requirements
• contractors are paid by Waukesha County after the work is completed and passes inspection

Timing and deadlines

The page says the new homeowner has a maximum of 6 months to complete the repairs after loan closing.