Dane County, WI First-Time Home Buyer Programs and Down Payment Help
Dane County buyers can apply to 1 local down payment program, with help up to $35,000 through Home-Buy the American Dream (HBAD), on top of Wisconsin's statewide programs. Figures below were read from the administering agencies' own pages on September 11, 2026.
Local programs in Dane County
These are run by City of Madison, separate from the state housing finance agency, and can usually be combined with a state loan. Check the program page for current funding before you apply.
| Program | Type | Amount | Income limit | First-time only | Where |
|---|---|---|---|---|---|
| Home-Buy the American Dream (HBAD) City of Madison (City of Madison Community Development Division) · source | second mortgage loan, 10-year term with monthly payments including interest | Up to $35,000 for down payment and/or closing costs | Low-to-moderate income, per the program's Underwriting Manual income limits table | Yes | City of Madison only. |
- Home-Buy the American Dream (HBAD). Combined loan-to-value limit is 105%. Applications must be submitted by a first-mortgage lender; typical processing time is 20 business days. Cannot be combined with other City-funded down payment programs (e.g., Movin' Out, Habitat for Humanity).
Income limits in Dane County
Down payment programs here are keyed to HUD's income limits for Madison, WI HUD Metro FMR Area (Dane County) (fiscal year 2026): the area median family income is $135,300 and the 80% limit that most programs use is $106,800 for a four-person household. Limits scale with household size; each program page has the full table. HUD income limits
Wisconsin statewide programs you can also use in Dane County
Wisconsin Housing and Economic Development Authority (WHEDA) (homebuyer programs page) runs 6 statewide programs open to buyers anywhere in Wisconsin, with down payment help up to 6% of the price (about $20,292 on a median-priced home) through WHEDA Easy Close Advantage DPA. Most local programs above can be combined with a state first mortgage; check each program's pairing rule.
| Program | Type | Amount | First-time only | Min. credit | Income limit |
|---|---|---|---|---|---|
| WHEDA Advantage Conventional source | First mortgage | See program page | No | 620 | Must be under the Total Household Compliance Income limit, which varies by county and whether the property is in a designated target area; |
| WHEDA Advantage FHA source | First mortgage | See program page | No | 640 | Same Total Household Compliance Income limits as WHEDA Advantage Conventional (varies by county/target area). |
| WHEDA Easy Close Advantage DPA source | Second mortgage | Minimum $1,000; maximum 6% of the purchase price | No | n/a | Total Household Compliance Income limits apply, based on the WHEDA first mortgage program (Advantage Conventional or Advantage FHA) it is paired with. |
| WHEDA Capital Access DPA source | Deferred second loan | $7,500 loan amount (Conventional or FHA) | No | n/a | Has separate (generally lower) Total Household Compliance Income limits than Easy Close, set per county; |
| WHEDA Advantage Home Improvement Loan Program (HILP) source | First mortgage | $10,000-$50,000 loan amount (up to 125% combined loan-to-value) | No | n/a | Total Household Income limits apply. |
| WHEDA Advantage Conventional HomeStyle Renovation source | First mortgage | See program page | No | 620 | Same limits as WHEDA Advantage Conventional (see that entry). |
Wisconsin also offers a mortgage credit certificate (WHEDA Tax Advantage Mortgage Credit Certificate (MCC)), a federal tax credit worth 25% of your mortgage interest each year. MCC program page
Dane County closing costs that differ from the rest of Wisconsin
Transfer tax: Wisconsin's real estate transfer fee is $0.30 per $100 of value (equivalent to $3.00 per $1,000, or 0.3%), customarily paid by the seller/grantor, set uniformly by state statute; Dane County has no authority to add a local surtax on top of it. Of the fee collected, 80% goes to the State of Wisconsin and 20% is retained by Dane County. Source
Frequently asked questions
What down payment assistance is available in Dane County, WI?
Home-Buy the American Dream (HBAD) (City of Madison, up to $35,000). Wisconsin statewide programs can be used here too.
What is the income limit for first-time buyer programs in Dane County?
Most programs cap income at 80% of HUD's area median, which is $106,800 for a four-person household in Madison, WI HUD Metro FMR Area (Dane County) (FY2026). Some programs allow up to 120% or 150% of median; each program page lists its own table by household size.
Is there a transfer tax in Dane County?
Wisconsin's real estate transfer fee is $0.30 per $100 of value (equivalent to $3.00 per $1,000, or 0.3%), customarily paid by the seller/grantor, set uniformly by state statute; Dane County has no authority to add a local surtax on top of it. Of the fee collected, 80% goes to the State of Wisconsin and 20% is retained by Dane County.
What is the median home price in Dane County?
About $394,800, per U.S. Census Bureau QuickFacts, Dane County, Wisconsin - Median value of owner-occupied housing units, 2020-2024 (ACS 5-Year). Down payment help of up to $35,000 covers roughly 9% of that price.
Official sources
- City of Madison: Home-Buy the American Dream (HBAD)
- HUD income limits
- Dane County transfer tax
- U.S. Census Bureau QuickFacts, Dane County, Wisconsin - Median value of owner-occupied housing units, 2020-2024 (ACS 5-Year)
Dane County figures last verified against official sources on September 11, 2026.
Other Wisconsin counties
This is general information, not financial advice. Program funding, limits and terms change; confirm the current rules with the administering agency and your lender before you rely on them.
See down payment help in all covered counties