Buying your first home in Holmen can feel out of reach when you hear “20 percent down.” The good news: you may not need anywhere near that. With the right first-time buyer program, you can reduce upfront costs, lock in a stable payment, and move sooner than you think. In this guide, you’ll learn the most-used programs in La Crosse County, who qualifies, and the exact steps to get started. Let’s dive in.
What “first-time buyer” means
Most programs define a first-time buyer as someone who has not owned a primary residence in the last three years. Some programs make exceptions for certain groups, like eligible veterans. The definition matters because it determines which loans and down payment assistance you can use.
If you owned a home more than three years ago, you may still qualify. Check the program’s rules before you rule yourself out.
Top programs for Holmen buyers
WHEDA loans and assistance
WHEDA is Wisconsin’s statewide hub for first-time buyer financing. You apply through WHEDA-approved lenders who offer 30-year fixed-rate mortgages with income and purchase price limits that vary by county and household size. WHEDA also offers down payment assistance that typically comes as a second mortgage or grant-like help. Many buyers complete a homebuyer education course to qualify for DPA.
Why it matters locally: WHEDA is widely used in La Crosse County and works well for buyers who need a stable payment and a lower upfront cost.
FHA loans
FHA loans allow a low down payment, often 3.5 percent with a qualifying credit score. FHA has flexible credit and debt-to-income guidelines compared with many conventional loans. You will pay mortgage insurance, which is part of the monthly payment and closing costs. Many first-time buyers pair FHA financing with down payment assistance when allowed.
USDA Rural Development loans
USDA financing can offer 0 percent down for eligible buyers purchasing in approved rural areas, with income limits. Eligibility depends on two things: the property’s location and your household income. Parts of La Crosse County and areas around Holmen may qualify. Always check a property’s eligibility before writing an offer.
VA loans
If you are an eligible veteran, active-duty service member, or certain reservists, VA loans can provide 0 percent down financing with no monthly mortgage insurance. A VA funding fee may apply unless you are exempt. Work with a lender experienced in VA to make the process smooth.
Conventional first-time buyer options
Conventional products such as Fannie Mae HomeReady, Freddie Mac Home Possible, or other 3 percent down programs can work well if you meet income and credit guidelines. In some cases, you can layer local down payment assistance with conventional financing if the program allows it.
Who qualifies: common rules
Eligibility varies by program, but you will see these themes in La Crosse County:
- Income limits: Most programs cap household income based on county and family size.
- Purchase price limits: Programs often limit the maximum home price.
- Credit and DTI: Minimum credit scores and maximum debt-to-income ratios apply. FHA, conventional, and WHEDA each set different benchmarks.
- Primary residence: You must live in the home as your main residence for a required period, especially if you use DPA.
- Homebuyer education: Many WHEDA and local assistance options require an approved course before closing.
- Property types: Single-family homes and certain condos and townhomes are typically eligible. Multi-unit, manufactured, or investment properties may have restrictions.
- Gift funds: Many programs allow gifts from family, but you must document the source and provide a gift letter.
How to apply in La Crosse County
Follow this simple path to position yourself for a strong pre-approval and a successful closing.
Step 0: Confirm eligibility
- Check whether you meet the three-year “first-time” definition.
- If you are considering USDA, confirm whether your target address falls in a USDA-eligible area and whether your income fits.
Step 1: Review credit and budget
- Pull your credit reports and credit scores.
- Fix errors, pay down revolving balances, and avoid opening new debt while you shop.
Step 2: Complete homebuyer education
- If you plan to use WHEDA or DPA, enroll in an approved homebuyer education course early.
- Keep your certificate for your lender and program file.
Step 3: Get pre-approved with program-aware lenders
- Contact WHEDA-approved lenders and ask about WHEDA loans with DPA, FHA, USDA, VA, and conventional 3 percent down options.
- Compare how each option affects your payment, cash to close, and long-term costs.
Step 4: Compare loan structures
- Review interest rates, mortgage insurance, and any second-mortgage DPA terms.
- Ask about forgivable assistance, repayment rules, and what happens if you sell or refinance.
Step 5: Gather paperwork
- Government ID.
- Recent pay stubs for 30 days.
- W-2s or 1099s for the last two years.
- Federal tax returns for the last two years.
- Two months of bank statements and asset documentation.
- Gift letter and documentation, if applicable.
- Divorce, child support, or other debt documents, if relevant.
Step 6: Apply and coordinate closing
- DPA funds can be limited and first-come, first-served, so start early.
- Align your loan timeline, DPA approval, and homebuyer education certificate so everything is ready at clear-to-close.
Post-closing: Know your obligations
- If you used DPA, understand any occupancy period, recapture rules, or repayment triggers before you sell or refinance.
Local resources to know
- WHEDA: State-level mortgages and down payment assistance delivered through approved lenders.
- USDA Rural Development: Property and income-based 0 percent down financing in eligible areas.
- HUD: FHA program information and a directory of approved housing counseling agencies.
- City of La Crosse Community Development and La Crosse County offices: Possible local CDBG/HOME-funded assistance and housing information, availability varies by year.
- Couleecap: Regional community action agency that offers housing counseling, education, and referrals.
- Local lenders: Choose lenders experienced with WHEDA, FHA, USDA, VA, and conventional first-time products.
If you want introductions to experienced, program-savvy lenders or local counseling agencies, ask us. We work with these partners every week in Holmen and across La Crosse County.
Pitfalls to avoid
- Chasing assistance without the full math: DPA can reduce cash to close, but you still budget for principal and interest, taxes, insurance, and any mortgage insurance.
- Waiting too long to apply: Some assistance programs pause when funds run out. Early applications help secure money before it is gone.
- Using an inexperienced lender: These programs have extra steps. Choose a lender who regularly closes WHEDA, USDA, FHA, or VA loans.
- Overlooking property rules: USDA and some DPA programs have location or property-type limits. Confirm before you fall in love with a home.
- Ignoring post-closing rules: Forgivable loans or second mortgages may require you to live in the home for a set period.
Quick document checklist
- Photo ID
- Pay stubs for 30 days
- W-2s or 1099s for two years
- Federal tax returns for two years
- Two months of bank and asset statements
- Gift letter and proof of funds, if using a gift
- Any court or debt documents that affect your income or liabilities
How Favre & Co. supports first-time buyers
Buying in Holmen and greater La Crosse is competitive, but you do not have to figure it out alone. Our team pairs step-by-step coaching with local program knowledge so you can choose the loan and assistance that fit your goals. We help you target USDA-eligible areas when that makes sense, connect you with WHEDA-approved lenders, and structure offers that keep you protected and on timeline.
Favre & Co. is a locally rooted team with a strong track record across La Crosse County. With more than 1,000 transactions and a dedicated operations staff, you get responsive guidance, clear communication, and a smooth path from pre-approval to closing. If you want a calm, confident first home purchase, we are here to help.
Ready to explore your options or get matched with a program-aware lender? Reach out to Favre & Co. to start your first-time buyer plan today.
FAQs
What is a first-time buyer in La Crosse County?
- Most programs define it as not owning a primary residence in the last three years, with some exceptions for specific groups like eligible veterans.
Which first-time buyer program is best in Holmen?
- It depends on your income, credit, target location, and cash to close. WHEDA, FHA, USDA, VA, and conventional 3 percent down options each have tradeoffs that a lender can compare for you.
Can I buy with 0 percent down near Holmen?
- Yes, potentially with USDA or VA if you and the property qualify. USDA is location and income-based. VA depends on eligible service.
Can I use down payment assistance with FHA or conventional?
- Often yes, when program rules allow subordinate financing. Your lender will confirm whether DPA can be layered with your chosen loan.
Do I need homebuyer education for WHEDA or DPA?
- Many programs require a HUD- or WHEDA-approved course. Take it early so your certificate is ready for underwriting and closing.
How long does closing take with assistance?
- A typical loan closes in 30 to 60 days. Adding DPA or education requirements can add steps, so apply early and keep documents handy.
Are there resale or occupancy rules with DPA?
- Many DPA programs require you to live in the home for a set period and may have repayment or recapture terms if you sell or refinance early.
