Home-Buy the American Dream (HBAD)

Home-Buy the American Dream (HBAD) is a shared-appreciation loan for homebuyers in Madison, Wisconsin, administered by City of Madison Community Development Division (Department of Planning & Community & Economic Development). Down payment and closing cost assistance for low-to-moderate income first-time homebuyers purchasing a single-family home, condominium, or one-half of a duplex located within the City of Madison. Up to $35,000 in deferred assistance with no interest or monthly payments; applications must be submitted by a participating first-mortgage lender. Deferred loan up to $35,000 (minimum $1,000) for down payment and closing costs; no interest, no monthly payments. Funding comes from State of Wisconsin DOA Division of Energy, Housing & Community Resources (DEHCR); federal HUD; City of Madison.

Home-Buy the American Dream (HBAD) offers between $1,000 and $35,000 in assistance. Amounts are the program's published maximums, not an offer — City of Madison Community Development Division (Department of Planning & Community & Economic Development) determines any individual award.

Home-Buy the American Dream (HBAD) is a shared-appreciation loan and is repaid under the terms set by City of Madison Community Development Division (Department of Planning & Community & Economic Development). Repayment is triggered by Sale, cash-out refinance for purposes other than property improvements, transfer of the property, or when it ceases to be the borrower's primary residence. The assistance is recorded in second position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Home-Buy the American Dream (HBAD) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. A homebuyer education course is required. Property must be within the City of Madison (properties outside the city are no longer eligible as of May 1, 2023). Borrower must contribute 1% into the transaction. Maximum CLTV 105%. Maximum ratios 38%/55%; housing-to-income ratio below 25% is ineligible absent an exception. Borrower may not own other property at closing. Liquid assets after closing limited to <12 months PITI (exception possible for households without traditional retirement savings); minimum $50 cash reserves after closing. First mortgage must be at least a 30-year term and escrow taxes and insurance. HQS inspection ordered at City expense; pre-1978 homes also receive a Lead-Based Paint inspection. Repayment equals original loan amount OR original amount plus a proportional share of appreciation based on percentage of assistance, whichever is greater. Cannot be combined with other City-funded DPA (e.g., Movin' Out, Habitat). Funded by State of Wisconsin DEHCR, federal HUD, and the City of Madison.

Home-Buy the American Dream (HBAD) limits household income to 80% of the area median income, which varies by county and household size. 2026 household income limits (subject to annual change): 1=$74,800; 2=$85,450; 3=$96,150; 4=$106,800; 5=$115,350; 6=$123,900; 7=$132,450; 8=$141,000. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Home-Buy the American Dream (HBAD) serves homebuyers purchasing in Madison, Wisconsin.

Applications for Home-Buy the American Dream (HBAD) go through City of Madison Community Development Division (Department of Planning & Community & Economic Development), which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.