New Program Offers Interest-Free Mortgages to Wisconsin Families
GREEN BAY — A new initiative could provide hundreds of families in Wisconsin with a chance at homeownership through interest-free secondary mortgages.
The local Habitat for Humanity chapter believes this program could also play a role in increasing the number of homes being built.
This effort is seen as a response to the ongoing housing crisis, which has seen the average age of first-time homebuyers rise to an unprecedented 40 years.
“Homeownership appears to be slipping further away from regular people,” commented state Rep. Amado Rivera Wagner, a Democrat from Green Bay. “It suggests that there’s something fundamentally broken about the system right now.”
Habitat for Humanity’s 29 chapters throughout Wisconsin are noticing similar trends and are encouraging legislators from both parties to seek solutions.
“The challenges we face are not just for those we assist at Habitat, but for all potential homeowners in our area,” noted Jessica Diederich, CEO of Greater Green Bay Habitat for Humanity.
Recent legislation has established a workforce mortgage program, which is run by the Wisconsin Housing and Economic Development Authority (WHEDA). People whose income falls below their county’s median might qualify for a second interest-free mortgage to help bridge the gap in buying either a newly built or significantly renovated home.
Those approved for the program could see savings of around $270 each month.
“This is one of the rare programs without a statewide minimum requirement,” Rivera-Wagner explained. “So anyone from any community can apply.”
Up to $10 million is available for this initiative, expected to benefit around 200 families, with plans to allow more families to participate as loans are repaid.
Greater Green Bay Habitat for Humanity already offers similar secondary financing. These loans, which may take up to 30 years to pay off, are now accessible through the state, and Habitat aims to boost its own offerings.
“While constructing six or seven homes, the total from these second mortgages can equate to building one additional home,” Diederich remarked.
Homeowners through Habitat purchase their homes with a modified payment plan and must complete 250 to 500 hours of sweat equity, which can include activities like taking workshops, volunteering at the Greater Green Bay Habitat for Humanity Restore, participating in events, and helping build their own or others’ homes.
The current application window for the Home Ownership Program at Greater Green Bay Habitat for Humanity is open until Friday.
