Purpose: Assist employees of local public service entities in purchasing a home within the Village.

Downpayment Grant: Up to $20,000 or 50% of the required downpayment (whichever is less).

Eligibility and Requirements Specific to this Category: All eligibility criteria and requirements are the same as in the Category 3 Downpayment Assistance Program with the addition of the following:

• Applicant must demonstrate that a full-time member of the household is a current full-time employee in good standing of any of the following organizations at the time of purchasing the property:
  • Village of DeForest
  • DeForest Windsor Fire/EMS
  • DeForest Area School District
  • DeForest Area Public Library
  • Cornerstone Community Center
• If applicant initiates termination of employment at the qualifying organization within one (1) year of purchasing the property, the Village shall require repayment of any funds, unless the applicant demonstrates that he or she has obtained employment with another qualifying entity within 30 days after termination. Recipients may petition the Village for an exception in the case of hardship.
• Applicants receiving funding through this program may be eligible to apply for, and receive funding through, the Home Improvement Loan program.

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.