City of Racine Employee Homebuyer Assistance Program

What is City of Racine Employee Homebuyer Assistance Program?

City of Racine Employee Homebuyer Assistance Program is a forgivable loan for homebuyers in Racine, Wisconsin, administered by City of Racine Department of City Development (Division of Economic Development and Housing).

• An employer-assisted homebuyer benefit providing up to $10,000 in down payment and closing-cost assistance to employees of the City of Racine or the Racine Water/Wastewater Utility who buy a principal residence in the City of Racine. The assistance is a 0% forgivable loan secured by a recorded second mortgage, forgiven 1/7th per year and fully forgiven after seven years of continuous owner-occupancy. The actual award (between $1,000 and $10,000) is limited to the down payment and closing costs shown on the closing disclosure.
• Up to $10,000 toward down payment and closing costs.
• 0% interest, no monthly payment.
• Fully forgivable after 7 years of owner-occupancy.
• Funding comes from City of Racine municipal funds (City/utility employee benefit program).

How much assistance does it provide?

City of Racine Employee Homebuyer Assistance Program offers between $1,000 and $10,000 in assistance.

• The program can be combined with Borrower's primary mortgage; funded as a standalone municipal employee benefit.
• Amounts are the program's published maximums, not an offer — City of Racine Department of City Development (Division of Economic Development and Housing) determines any individual award.

Do you have to pay it back?

City of Racine Employee Homebuyer Assistance Program is forgiven after 7 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, transfer, cash-out refinance, ceasing owner-occupancy, or leasing the property before the 7-year forgiveness period elapses; unforgiven balance becomes due. Forgiven 1/7th per year.
• The assistance is recorded in Second (recorded mortgage behind the first mortgage) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Racine Employee Homebuyer Assistance Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

City of Racine Employee Homebuyer Assistance Program sets its income limit as follows: No published income cap in the program term sheet; household income collected on intake only to refer applicants to additional income-based funding. Eligibility is driven by employment, not an AMI limit.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Racine Employee Homebuyer Assistance Program can be used for Single Family.

• New construction is eligible.

Where does it apply?

City of Racine Employee Homebuyer Assistance Program serves buyers purchasing in Racine, Wisconsin.

How do you apply?

Applications for City of Racine Employee Homebuyer Assistance Program go through City of Racine Department of City Development (Division of Economic Development and Housing), which publishes the current terms and the application steps on its own site.

1. 1

   Contact City of Racine Department of City Development (Division of Economic Development and Housing) to reserve funds

   Funds are reserved through First-come, first-served; funding limited. Intake application to City Development; approval letter/term sheet issued for the lender., and are subject to availability.

2. 2

   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.