WI AB454

Creates a workforce home loan fund administered by WHEDA to provide zero-interest gap financing for first-time homebuyers purchasing new construction or substantially rehabilitated single-family homes in Wisconsin

Limits loans to the lesser of $60,000 (adjusted annually for housing price increases) or 25% of the home's purchase price/fair market value, with eligibility capped at 100% of area median income

Sets loan terms at 15 years for households above 80% AMI, 30 years for those at 60-80% AMI (with 60-month payment deferral), and 40 years for those at or below 60% AMI (with deferral until first mortgage is paid off)

Requires full repayment of remaining principal if the borrower sells the home or no longer uses it as a primary residence; loans are secured as second-lien mortgages and cannot be forgiven

Authorizes WHEDA to allocate up to $10 million in the 2025-27 biennium from existing housing program funds to capitalize the new loan fund