Purpose: Provide home improvement loans for homebuyers and homeowners to help improve the quality of DeForest’s housing stock.

Financial Assistance:

• Home Improvement Loan: Up to $30,000 at 0% interest, repaid over 10 years or due upon sale of the home.

Eligibility and Requirements Specific to this Category:

• The property must be located within the Village of DeForest municipal boundaries and must have its most recent assessed value be no greater than 120% of the median average assessed home value in the Village, as established by the Village Assessor on an annual basis. Exhibit B (PDF) includes a chart showing the median assessed home value in DeForest in 2025. This chart is intended as a reference to help applicants for funding determine whether the property in their application may qualify. The chart may be updated periodically as assessed values change.
• Applicants must contribute a minimum 20% funding of total project costs. Applicants combining a down payment assistance grant with their home improvement loan are exempt from this requirement.

Eligible Home Improvement Projects: Home improvements and modifications eligible under this program include, but are not limited to: repairs to structural components of the home, repair or replacement of windows and doors, exterior façade improvements, repair or replacement of gutters, trim, soffit and fascia, painting or staining, concrete or driveway repairs, repairs or upgrading of mechanical systems, etc.

Ineligible Projects: Home improvements and modifications that are not eligible under this program include, but are not limited to: purchase and installation of appliances, equipment or tools, demolition only, landscaping and site work, interior projects to accessory structures or garages, repair or replacement of outdoor dog houses, animal structures, or other accessory structures.

Criteria specific to individual categories are listed under each category, but all categories share the following common eligibility criteria:

• Applicant must be the owner of the property that will be improved with the funding being requested or, in the case of down payment assistance, must be the owner-occupant of the property upon purchase.
• The property must be located within the Village of DeForest municipal boundaries.
• Household income must be at or below 80% of Area Median Income (AMI). In addition to income, the Village considers accessible household assets, including financial accounts, investments, retirement accounts, and certain higher-value primary residences (assessed at $500,000 or more). If total liquid assets exceed $150,000, 10% of those assets will be added to annual household income to determine eligibility. Households exceeding the AMI limit after this calculation will be ineligible. Vehicles, personal property, and other non-financial assets are excluded. Income Limited Chart (PDF)
• Applicant must contribute a minimum of 20% funding of total project costs and demonstrate a minimum household debt service coverage ratio of 1.05. This means that household income must be 1.05 times the amount needed to cover total household debt payments, including both mortgage and consumer debt.
• Applicant must submit a $50.00 application fee along with a completed application and supplemental materials, including:
  • Proof of income for all household members. This includes the most recently filed taxes (Form 1040) or a signed statement explaining non-filing, 60 days of income proof (paystubs, SSA, 401k benefit statements, bank statements reflecting income deposits, etc.)
  • A copy of the homeowner’s insurance policy.
  • A completed IRS Form W-9.
  • For Accessibility project, hazard mitigation project, and home improvement project loans:
    • Construction plans, design materials, or other descriptive project documentation, and a tentative project schedule. Projects must be substantially completed within twelve (12) months of funding approval, unless otherwise approved by the Village Board.
    • Itemized description of the proposed/estimated cost for labor and materials necessary for completing the project. All project work must pass all requisite inspections.