Benefits of Owning a Home

Owning a home comes with numerous benefits, including building equity, tax advantages, and a sense of community. For many, homeownership is a key component of the American dream, providing a stable and secure environment for families to grow and thrive. In addition to these personal benefits, homeownership also contributes to the local economy and community development. In cities like Mequon, Wisconsin, homeowners can enjoy a range of community amenities, from parks and recreation centers to excellent schools and local businesses. By investing in a home, individuals can also invest in their community, helping to create a vibrant and thriving neighborhood.

Understanding the First-Time Home Buyer Status

In Wisconsin, a first-time home buyer is defined as someone who has not owned a principal residence in the past three years, per the U.S. Department of Housing and Urban Development (HUD). This definition also includes single parents or displaced homemakers who only owned a home with a spouse. This broader eligibility opens doors for many Mequon residents to access specialized loan programs and assistance, making it important to understand the definition of a first-time home buyer.

Financial Assistance Programs for Mequon Home Buyers

Wisconsin, and by extension Mequon, offers several programs to ease the financial burden for first-time home buyers. These programs provide funds that must ultimately be repaid by the borrower, often linked to the sale of the property or refinancing of the mortgage. Below are key options through the Wisconsin Housing and Economic Development Authority (WHEDA) and local initiatives:

• Meeting specific program requirements is crucial for eligibility and successful application.
• The U.S. Department of Housing and Urban Development (HUD) is a key source of information for these programs.

WHEDA Advantage Conventional Loan

• Overview: A 30-year fixed-rate mortgage conforming to Fannie Mae guidelines, ideal for single-family homes, condos, or 2–4 unit properties.
• Eligibility: Minimum credit score of 620, completion of a homebuyer education course (for first-time buyers), and income within WHEDA’s limits. The home must be your primary residence.
• Benefits: Low monthly payments and no closing costs or down payment for single-family homes unless required by the lender.
  
  

WHEDA Advantage FHA Loan

• Overview: A federally backed loan requiring a 3.5% down payment, suitable for buyers with lower credit scores.
• Eligibility: Minimum credit score of 640, homebuyer education course, and income limits. The property must be in Wisconsin and serve as your primary residence. Accurate information entry in FHA Connection is crucial for identifying first-time homebuyers and ensuring the success of these programs.
• Benefits: Flexible credit requirements and access to down payment assistance.
  
  

WHEDA Easy Close Down Payment Assistance (DPA)

• Overview: Provides $1,000 to 6% of the home’s purchase price as a 10-year fixed-rate second mortgage.
• Eligibility: Paired with a WHEDA Advantage Conventional or FHA loan.
• Benefits: Covers down payment and closing costs, with the same interest rate as the first mortgage. Note: The WHEDA Capital Access DPA program ($7,500 assistance) is unavailable as of May 1, 2025, due to funding constraints. The purchase price limits for existing homes will remain in effect until HUD issues new limits, providing stability for potential homebuyers.
  
  

Local and Regional Grants

• Downpayment Plus® Program: Offers up to $6,000 in forgivable grants for down payment and closing costs, available statewide for buyers meeting income guidelines. Funds are forgiven after five years of owner occupancy. This program is available statewide, including in major cities like Green Bay, ensuring broad access to financial assistance.
• HOME Consortium: Provides up to $5,000 in forgivable loans for buyers in Ozaukee County (including Mequon), ideal for low- to moderate-income households.
• Movin’ Out Program: Offers up to $8,000 for first-time buyers with a permanent disability or a family member with one, usable anywhere in Wisconsin.

Mortgage Credit Certificate (MCC)

• Overview: Allows first-time buyers to claim up to $2,000 of mortgage interest as a tax credit annually, significantly reducing the number of federal tax liabilities.
• Eligibility: Must live in the home, meet income and purchase price limits, and not have owned a home in the past three years.
• Benefits: Reduces federal tax liability, freeing up funds for homeownership costs.
  
  

Steps to Buying Your First Home in Mequon

Assess Your Finances:

• Check your credit score (aim for 620+ for conventional loans, 640+ for FHA). Work on improving it if needed.
• Calculate your debt-to-income ratio (DTI). Lenders prefer a DTI below 28% before a mortgage, and 50% including the mortgage payment.
• Save for a down payment. While WHEDA programs allow 3–3.5% down, a larger down payment (e.g., 20%) can avoid private mortgage insurance (PMI).

Get Pre-Approved:

• Contact a WHEDA-approved lender, like Joonago Mortgage Services, for pre-approval. This clarifies your budget and strengthens your offer in Mequon’s competitive market.
• Joe Huljak and his team can guide you through WHEDA’s network of lenders to compare rates and lock in competitive offers.

Explore Assistance Programs:

• Apply for WHEDA loans and DPA programs. Combine with local grants like Downpayment Plus® or HOME Consortium for maximum support.
• Complete a HUD-certified homebuyer education course, available online or in-person, to meet WHEDA requirements and gain valuable insights. Accurate information entry is crucial for tracking and supporting first-time homebuyers throughout the process.

Find the Right Home:

• Work with a local real estate agent familiar with Mequon’s market. First Weber REALTORS, for example, lists 95+ properties, including single-family homes and condos.
• Focus on neighborhoods like The Pines or central Mequon, which are in high demand. Ensure the home meets WHEDA’s purchase price limits (varies by property type and location).

Make an Offer and Close:

• Submit a competitive offer with your pre-approval letter. In Mequon, homes in popular areas may see bidding wars, so act quickly.
• Schedule a home inspection to ensure the property meets Housing Quality Standards (required for some assistance programs).
• Finalize your WHEDA loan and DPA details. Closing costs in Wisconsin typically range from 2–3% of the purchase price, but assistance programs can offset these.

Community Amenities in Mequon

Mequon, Wisconsin, offers a unique blend of urban and rural amenities, making it an attractive destination for homebuyers. The city boasts a range of parks and recreation centers, providing ample opportunities for outdoor activities and community events. Residents can also enjoy excellent schools, local businesses, and a strong sense of community. With its mix of rural and urban areas, Mequon provides a unique and desirable lifestyle for homeowners. From the scenic beauty of the surrounding countryside to the convenience of nearby Milwaukee, Mequon offers the perfect balance of natural beauty and urban amenities.

Location and Transportation

Mequon’s location in Milwaukee County provides easy access to a range of transportation options, including major highways and public transportation. The city is also conveniently situated near several major employers, making it an attractive destination for commuters. With its proximity to Milwaukee and other nearby cities, Mequon offers a range of cultural, educational, and recreational opportunities. Whether you’re looking to explore the city, visit local attractions, or simply commute to work, Mequon’s location and transportation options make it an ideal choice for homeowners.

Home Inspection and Tour

When purchasing a home, a thorough home inspection and tour are essential steps in the process. These inspections provide buyers with a detailed understanding of the property’s condition, highlighting any potential issues or needed repairs. By completing a home inspection and tour, buyers can make informed decisions about their purchase, ensuring they find the perfect home for their needs and budget. In Wisconsin, homebuyers can work with licensed inspectors and real estate professionals to navigate the inspection and tour process, providing peace of mind and confidence in their purchase. Whether you’re a first-time homebuyer or an experienced homeowner, a thorough home inspection and tour are crucial steps in finding your dream home.

Tips for Success

• Shop Around for Rates: Interest rates fluctuate, so compare offers from WHEDA lenders. Locking in a low rate can save thousands over the loan’s life.
• Understand Total Costs: Beyond the down payment, budget for closing costs, property taxes, and insurance. WHEDA’s “True Costs of Homeownership” guide is a helpful resource.
• Leverage Local Expertise: Partner with professionals like Joe Huljak at Joonago Mortgage Services for personalized mortgage advice and seamless navigation of WHEDA programs.
• Stay Informed: Mequon’s market is competitive, with homes selling fastest in January. Avoid February, when sales slow, to maximize your options. When navigating online resources, be sure to click or press the enter key on relevant links to access detailed information.

Mequon Market Insights

• Median Home Prices: Wisconsin’s median home price is $302,800 (January 2025), but Mequon’s desirable areas often list higher, around $350,000–$400,000.
• Hot Neighborhoods: The Pines and Knightsbridge Estates are top picks, with central and northern Mequon also in demand.
• Market Trends: Home prices in Wisconsin rose 5.5% annually as of January 2024, with Mequon seeing steady appreciation due to its strong economy and lakefront appeal. As of September 2024, these trends are expected to continue, making it a favorable time for potential homebuyers.

Conclusion

For first-time home buyers in Mequon, WI, the path to homeownership is more accessible than ever, thanks to WHEDA’s loan programs, down payment assistance, and local grants. By leveraging these resources and working with trusted professionals like Joe Huljak at Joonago Mortgage Services, you can confidently navigate the process and secure your dream home. Start by assessing your finances, getting pre-approved, and exploring assistance programs tailored to your needs. Mequon’s vibrant community and promising housing market await—take the first step toward your new home today!