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Home-Buy the American Dream (HBAD)

City of Madison Community Development Division (Department of Planning & Community & Economic Development) · Madison, Wisconsin

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Assistance

$1,000–$35,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Shared appreciation

Settled on the terms set by City of Madison Community Development Division (Department of Planning & Community & Economic Development)

What is 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.

How much assistance does it provide?

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.

Do you have to pay it back?

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.

Who qualifies?

Home-Buy the American Dream (HBAD) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • A completed homebuyer education course
  • 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.

The program excludes

  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

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.

Where does it apply?

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

How do you apply?

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.

  1. Take a homebuyer education course

    Required by the program before funds are reserved.

  2. Contact City of Madison Community Development Division (Department of Planning & Community & Economic Development) to reserve funds

    Funds are reserved with the provider and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

Learn this program

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Home-Buy the American Dream (HBAD), explained

A short, free course on Home-Buy the American Dream (HBAD): what it is, who it is for, when it is repaid, where it applies and how to apply. Based on program data from July 2026. About ten minutes.

5 modules · About 10 minutes

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