Greater Fox Cities Habitat for Humanity kicks off Rock the Block 2018 in Little Chute. PC: Fox 11 Online
GREEN BAY, WI (WTAQ-WLUK) — Hundreds of Wisconsin families trying to become homeowners could benefit from a new program that will provide zero-interest secondary mortgages.
Habitat for Humanity chapters say the program will also help them build more homes.
It’s being viewed as one way to attack the well-documented housing crisis that has led to the median age of a first-time homebuyer sitting at an all-time high of 40 years old.
“We’re seeing home ownership the furthest it’s ever been from everyday people,” said State Rep. Amaad Rivera-Wagner, D-Green Bay. “It tells us something is broken right now.”
The 29 Wisconsin affiliates of Habitat for Humanity have been seeing the same thing — influencing them to work on solutions with state lawmakers from both sides of the aisle.
“The odds are stacked against people who are trying to become homeowners in our community — not just families that we’re serving at Habitat,” said Jessica Diederich, CEO of Greater Green Bay Habitat for Humanity.
Legislation was just passed for a workforce home loan program administered through the Wisconsin Housing and Economic Development Authority, or WHEDA. If your income is at the median or below for your county, you could apply for a secondary, zero-interest mortgage to close the gap in landing a new construction or largely-rehabbed home.
It’s expected to save recipients up to $270 a month.
“It’s one of the few programs across the state that doesn’t have a lower cutoff,” said Rivera-Wagner. “So, regardless of whatever community you’re in, you can apply for this program.”
Up to $10 million is available for this program statewide. It’s expected to help up to 200 families. The plan is to get more families involved once the loans start being repaid.
Greater Green Bay Habitat for Humanity provides these types of secondary loans. With some taking 30 years to repay and now being available through the state, Habitat has hopes of increasing its home production.
“Over the course of six or seven houses, these second mortgages could add up to the construction of one brand-new home,” said Diederich.
Habitat homeowners purchase their homes with adjusted payment plans, while also completing 250-500 hours of sweat equity, which can be achieved “through activities such as attending classes and workshops, working at the Greater Green Bay Habitat for Humanity ReStore, participating in Habitat or ReStore events and contributing to the construction of their own home or other Habitat homes.”
The current application cycle for Greater Green Bay Habitat for Humanity’s Homeownership program is open through Friday.
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