WI AB917

Establishes a $150 million first-time home buyer purchasing assistance fund administered by the Wisconsin Housing and Economic Development Authority (WHEDA) to provide interest-free loans for closing costs, down payments, mortgage insurance, interest rate buy-downs, and principal reduction

Maximum loan amount is $35,000 or 10% of the home purchase price, whichever is less; eligible properties include single-family homes, multifamily housing up to 4 units, and manufactured or mobile homes

Eligibility requires household income at or below 100% of area median income, completion of a home buyer education course, agreement to occupy the home as primary residence, minimum $1,000 personal contribution toward down payment or closing costs, and use of a WHEDA first mortgage program

Loans are progressively forgiven over 10 years: 12.5% forgiven at 2.5 years, 25% at 5 years, 37.5% at 7.5 years, and 50% at 10 years

Full unpaid principal becomes due if the recipient sells the home, stops using it as primary residence, conducts an ineligible refinance, or violates the loan agreement, though WHEDA may forgive amounts due in cases of financial or personal hardship