Home Purchaser Information

The Community Development Block Grant (CDBG) program can help make the dream of owning your own home a reality.

How do I qualify?

You must be Low- to Moderate- Income. If you currently own your own home, you are not eligible for this program. The Low- to Moderate- Income guidelines for Sauk County are:

How can the program assist you in purchasing a home?

Down payment and closing costs are available in the form of a 0% deferred payment loan. No payments are made and the funds are paid back to the program when the owner no longer lives in or owns the home.

Are there any restrictions on the location or type of home I purchase?

All homes purchased must be located within Sauk County. The homes also must be vacant or occupied by the seller or buyer. You should look for a home that does not have peeling or deteriorated paint. State regulations for lead-based paint may make purchasing a home with paint problems unfeasible.

How much money is available?

CDBG funds can pay for up to ½ of a reasonable down payment, not to exceed 10% of the purchase price. It may also be possible to use rehab as equity for down payment. The program can also pay for eligible closing costs, not to exceed $2,500 (NOTE: pre-paid taxes and insurances are not eligible closing costs). There will also be funds available to do rehab to the home that is purchased.

Do I still need to go to a bank?

Yes, you will need to get financing for your mortgage. Typically, the interest rate should not be more than 2% above the current interest rate offered by local lenders in your area. We may not be able to fund your project under this program if the interest rate is too high.

How much money will I be required to have toward the down payment?

It will depend upon the amount the bank is requiring, but this program requires that you have at least $1,000 of your own money to go toward the purchase. Earnest money can be applied to the $1,000.

What is the most I can receive?

The most you can receive will depend upon the repairs needed to the home that is purchased. Each project is considered on a case-by-case basis.

Counseling Requirement

All participants in the CDBG Program will be required to receive home purchaser counseling. Counseling will be provided one-on-one with each applicant by program staff.