The Definitive Guide to Wisconsin Mortgage Relief & Homeowner Assistance Programs

The financial pressure of maintaining a home can be immense. For many Wisconsin homeowners, the fear of falling behind on mortgage payments is a significant source of stress, whether due to job loss, medical bills, or rising costs. This situation often leaves homeowners feeling isolated and unsure where to turn for reliable help.

This guide is the single most comprehensive resource for navigating mortgage relief in Wisconsin. It cuts through the confusion, provides clear information, and empowers you with the knowledge needed to find stability.

While some pandemic-era relief programs have ended, a robust network of state, local, and non-profit support systems remains active. This article provides a roadmap, starting with an update on the "Wisconsin Help for Homeowners" program, detailing active financial assistance, and offering a step-by-step guide to foreclosure prevention.

An Important Update: The Wisconsin Help for Homeowners (WHH) Program

For anyone searching for "Wisconsin mortgage relief," the Wisconsin Help for Homeowners (WHH) program is often the first result. Understanding its current status is a critical first step.

Program Status: Closed to New Applications

The Wisconsin Help for Homeowners (WHH) program officially closed to new applications as of 11:59 p.m. on Friday, March 8, 2024.

This program is no longer an option for new applicants. It was a specific, targeted response to the COVID-19 pandemic, designed to prevent mortgage delinquencies, defaults, and foreclosures for low- and moderate-income households.

Purpose and Funding

The WHH program was Wisconsin's implementation of the national Homeowner Assistance Fund (HAF), a $9.961 billion fund established under the American Rescue Plan Act of 2021. The U.S. Department of the Treasury distributed these funds to states to support homeowners impacted by the pandemic. Wisconsin received $92.7 million for its program.

The Wisconsin Department of Administration (DOA) administered the program, partnering with organizations like the Wisconsin Community Action Program Association (WISCAP) and Take Root Wisconsin to process applications and distribute aid.

Program Impact

By the time it closed, the WHH program had proven to be a vital lifeline.

• It successfully distributed nearly $70 million in assistance.
• Aid was provided to over 8,600 households across all 72 of Wisconsin's counties.
• The average assistance per household was $8,438, with a maximum award of $40,000.
• Aid covered overdue bills for mortgages, property taxes, condo fees, and utilities, with payments made directly to the service providers.

The program's closure marks a shift away from large-scale emergency relief. Homeowners must now focus on the state's more traditional and ongoing support systems.

Active Financial Assistance Programs for Wisconsin Homeowners

With the WHH program closed, homeowners can turn to an established network of state and local programs. The following table provides a high-level overview of prominent active programs.

A. Wisconsin Housing and Economic Development Authority (WHEDA): A Pillar of Support

The Wisconsin Housing and Economic Development Authority (WHEDA) is the state's primary housing authority and a foundational resource for affordable home financing. For over 50 years, WHEDA has partnered with private lenders to offer low-cost financing programs, helping Wisconsin residents purchase and maintain their homes.

WHEDA First Mortgage Programs

WHEDA offers two main 30-year, fixed-rate first mortgage products. A key feature is that an applicant does not need to be a first-time homebuyer to qualify.

• WHEDA Advantage Conventional: A conventional loan that follows Fannie Mae guidelines.
• WHEDA Advantage FHA: A loan backed by the Federal Housing Administration (FHA).

Both programs require the property to be an owner-occupied primary residence in Wisconsin and have household income limits. The table below highlights their key differences.

WHEDA Down Payment Assistance (DPA)

WHEDA helps overcome the barrier of a down payment with its DPA programs, which are structured as second mortgage loans and can be combined with a WHEDA first mortgage.

• WHEDA Easy Close DPA: This is the primary DPA option, providing a loan for up to 6% of the home's purchase price. It is a 10-year, fixed-rate second mortgage with the same interest rate as the primary WHEDA mortgage.
• WHEDA Capital Access DPA: This program has historically offered a no-interest, no-payment loan. However, as of May 1, 2025, this program is not available for the remainder of the year due to funding constraints. Homebuyers should check with WHEDA for updates on its potential reopening. 

WHEDA Home Improvement & Renovation Loans

WHEDA's support extends to maintaining and improving properties.

• Home Improvement Loan Program (HILP): This program offers a 15-year fixed-rate loan for current homeowners needing to finance repairs or improvements. The property's existing mortgage does not have to be a WHEDA loan to qualify.
• Advantage Conventional Home Style® Renovation: This program allows a borrower to finance both the purchase and renovation of a home with a single loan. It can be combined with WHEDA DPA for up to 100% financing.

B. Statewide Initiatives for Low-to-Moderate-Income (LMI) Households

Beyond WHEDA, Wisconsin has a safety net of initiatives designed to assist low-to-moderate-income (LMI) households, often during a housing crisis.

The Housing Cost Reduction Initiative (HCRI)

Established in 1989, the HCRI program supports LMI households in achieving and maintaining homeownership. The program is administered by the state and delivered through local government and non-profit grantees. It focuses on two areas:

1. Acquisition Assistance: Provides help with down payments and closing costs for prospective homebuyers, often as a 0% interest, deferred-payment loan.
2. Foreclosure Prevention: Offers financial assistance for mortgage payments and property taxes to prevent foreclosure.

To be eligible, a household's annual income must not exceed 80% of the County Median Income (CMI).

The Foundation for Rural Housing

This non-profit organization focuses on preventing homelessness in rural Wisconsin by providing one-time assistance to very low-income households.

• Geographic Focus: The Foundation serves 69 counties, specifically excluding the urban centers of Milwaukee, Dane, and Racine.
• Assistance Offered: It provides crisis-based aid for mortgages, property taxes, utilities, and security deposits. To qualify for mortgage assistance, a homeowner must be at least two months behind on payments.

Other State-Funded Emergency Relief

Two other statewide programs provide critical, short-term emergency aid.

• Emergency Assistance (EA): This program provides a payment to families with children facing a housing emergency, such as impending homelessness. Eligibility is strict, requiring a household income at or below 115% of the Federal Poverty Level.
• DEHCR Critical Assistance (CA) Program: This program offers a one-time payment for mortgage, rent, or utilities for households at or below 80% of the CMI in areas not served by other federal grants. The current statewide grantee is the Foundation for Rural Housing.

C. Local & Regional Relief Programs

The final tier of support comes from programs at the city and county level. Homeowners should always investigate what resources are available locally.

Focus on Milwaukee

The city's Neighborhood Improvement Development Corporation (NIDC) administers several robust programs.

• Milwaukee Home Down Payment Assistance: Offers forgivable grants up to $7,000 to help current city residents become first-time homebuyers.
• Homebuyer Assistance Program: Provides forgivable loans up to $35,000 to help buyers with the costs of rehabilitating a vacant, city-owned foreclosed home.

Focus on Madison/Dane County

The City of Madison offers its own flagship program to promote homeownership.

• Home-Buy the American Dream: This program provides down payment and closing cost assistance from $1,000 to $35,000 for eligible homebuyers in Madison. The assistance is a 0% interest, deferred-payment loan.

Other Regional Programs

Regional consortiums often pool resources to serve multiple counties.

• The HOME Consortium: This partnership serves Washington, Waukesha, Jefferson, and Ozaukee counties, offering a forgivable down payment assistance loan of up to $10,000.
• Local Community Action Agencies: Organizations like CAP Services and NeighborWorks Green Bay often administer local DPA programs or act as grantees for statewide initiatives.

Proactive Foreclosure Prevention: Resources and Strategies

For homeowners who have missed payments or anticipate they will soon, taking immediate, proactive steps is key. Wisconsin has a strong network of resources to help homeowners avoid foreclosure.

Step 1: Contact Your Mortgage Servicer Immediately

The first and most important call is to your mortgage servicer. Lenders are often willing to work with borrowers who communicate their difficulties early. Ask about loss mitigation options, which may include:

• Special Forbearance: A temporary suspension or reduction of payments.
• Repayment Plan: An agreement to catch up on past-due amounts over time.
• Loan Modification: A permanent change to your loan terms to make payments more affordable.

Step 2: The Critical Role of HUD-Approved Housing Counseling

Navigating negotiations with a lender can be daunting. A HUD-approved housing counselor is an invaluable, free or low-cost ally . These certified professionals can:

• Provide a confidential review of your financial situation.
• Explain the law and all available options without bias.
• Help organize the necessary paperwork for assistance.
• Represent you in negotiations with your lender.

Engaging a counselor is a no-risk step that will not impact your credit score. You can find a counselor by using HUD's online locator tool or by calling their toll-free hotline at (800) 569-4287.

Step 3: Accessing Legal and Mediation Services

In some cases, legal advice or formal mediation may be necessary.

• Legal Assistance: Non-profits like the Legal Aid Society of Milwaukee provide free legal services to income-eligible residents facing foreclosure.
• Foreclosure Mediation: Programs like Mediate Milwaukee provide a structured process for homeowners and lenders to meet with a neutral mediator to find a mutually agreeable alternative to foreclosure.  

Warning: Identifying and Avoiding Foreclosure Rescue Scams

Financial distress can attract predatory actors. Be vigilant and watch for these warning signs of a scam:

• Demands for up-front fees.
• Guarantees to stop a foreclosure.
• Instructions to stop paying your mortgage servicer.
• Pressure to sign over the deed to your property.

If you suspect a scam, report it to an organization like the Metropolitan Milwaukee Fair Housing Council.

Directory of Wisconsin Foreclosure Prevention & Counseling Agencies

A Comprehensive Guide to Eligibility Requirements

Qualifying for assistance depends on a combination of criteria. Understanding these interconnected requirements is essential for a successful application.

Understanding Income Limits

Household income is the most common eligibility gatekeeper. Most programs measure a household's gross annual income against a percentage of the Area Median Income (AMI) or County Median Income (CMI).

• Program Thresholds: The required income level varies. The closed WHH program used a 100% of AMI threshold, while the active HCRI program uses 80% of CMI.
• Reading the Tables: For programs like WHEDA's, you must find your specific county and household size on their income limit tables to determine your eligibility.
• Total Household Income: This typically includes the pre-tax income of all household members aged 18 and over, not just those on the mortgage.

Defining Financial Hardship

For crisis-based programs, applicants must document a qualifying financial hardship. This is generally a material reduction in income or increase in living expenses. Common examples include:

• Job loss or a reduction in work hours.
• A significant reduction in business income for the self-employed.
• Illness or the need to care for a sick family member.
• Unexpected medical or funeral expenses.
• Increased household costs for fuel, utilities, or childcare.

Property and Homeownership Requirements

Programs almost universally have requirements related to the property itself.

• Primary Residence: The property must be the owner's primary residence, meaning they currently own and occupy it.
• Eligible Property Types: Most programs cover single-family homes, condominiums, duplexes (if owner-occupied), and permanently affixed manufactured homes.
• First-Time Homebuyer Status: Many local down payment assistance programs are restricted to first-time homebuyers. However, major statewide programs from WHEDA and HCRI are open to repeat buyers as well.

Other Key Requirements

Several other factors can play a role in eligibility.

• Credit Scores: Proactive financing programs like WHEDA's have minimum credit score requirements, typically starting at 620.
• Homebuyer Education: Completing a homebuyer education course from a HUD-approved agency is a common prerequisite, especially for first-time homebuyers.

The Application Process: A Step-by-Step Overview

The specific application steps vary by program, but a general pathway can help you prepare. For nearly all mortgage and utility assistance programs, payments are made directly to the service provider, not the homeowner.

General Application Steps

1. Initial Contact and Pre-Screening: The process often begins with an online application, a call to a program hotline, or a visit to a local agency.
2. Gathering Documentation: Being prepared with the correct documents can significantly speed up the review. A typical application package will require:

• Proof of Hardship: A signed written statement explaining your financial hardship.
• Proof of Income: Recent pay stubs, W-2s, signed federal tax returns, and bank statements. 
• Housing and Debt Information: Recent mortgage statements, property tax bills, and utility bills.
• Personal Identification: Copies of photo IDs and Social Security number documentation.

3. Submitting the Application: Applications may be submitted through an online portal, in person, or with the help of an approved lender for WHEDA loans.

4. Review and Decision: A case worker or loan officer will review your file to determine eligibility . This process can take time; for example, the Foundation for Rural Housing notes a processing time of approximately 30 business days.

Frequently Asked Questions (FAQ) About Wisconsin Mortgage Assistance

This section addresses common questions from Wisconsin homeowners.

• Is the main Wisconsin mortgage relief program still open? No. The Wisconsin Help for Homeowners (WHH) program closed to new applications on March 8, 2024. However, many other state and local programs remain active.
• Can I get help if I'm not behind on my mortgage yet? Yes. Proactive programs, like refinancing through a WHEDA-approved lender, are available for homeowners who are current but anticipate future difficulty. Reactive programs are for those already delinquent.
• Do I have to be a first-time homebuyer to get help? It depends. Many local down payment assistance grants are for first-time homebuyers. However, major statewide programs from WHEDA and HCRI do not have this requirement.
• What if my income is too high for some programs? You may still qualify for WHEDA's programs, which have higher income thresholds. If not, your best course of action is to work directly with your mortgage servicer or a HUD-approved housing counselor.
• I live in a rural area. Are there special programs for me? Yes. The Foundation for Rural Housing is dedicated to serving 69 of Wisconsin's more rural counties. Additionally, WHEDA offers a reduced interest rate for homebuyers in 15 designated rural counties.
• Is foreclosure prevention counseling really free? Yes, counseling from HUD-approved non-profit agencies is free or very low-cost . Be wary of any company that demands a large up-front fee, as this is a primary sign of a scam.
• Will receiving mortgage assistance affect my credit score? Seeking counseling will not affect your credit score. Missing mortgage payments is what damages credit. Receiving assistance helps resolve the delinquency, stops further damage, and begins the process of recovery.

Conclusion: Taking the First Step Toward Housing Stability

Navigating financial hardship as a homeowner can be stressful. While the large-scale, pandemic-era Wisconsin Help for Homeowners program has ended, its closure does not mean help is unavailable. A multi-tiered support network remains in place.

WHEDA continues to provide affordable financing, while statewide initiatives like HCRI and local programs in cities like Milwaukee and Madison offer a critical safety net. Specialized organizations like the Foundation for Rural Housing ensure assistance reaches every corner of the state.

For those facing the immediate threat of foreclosure, the path forward is clear: communicate with your servicer and connect with professional guidance. You do not have to navigate this complex landscape alone.

The single most empowering action a Wisconsin homeowner can take is to contact a free, confidential, HUD-approved housing counselor. An expert advocate can assess your situation, explain all available options, and help you forge a clear plan toward lasting housing stability.

Frequently Asked Questions