Lease / Purchase

Lease Purchase Program

The lease purchase program provides an opportunity for first-time homebuyers to become homeowners and maintain long-term housing affordability through a shared appreciation model.

This program is designed to assist persons who could not otherwise afford to purchase a home without assistance.

How it works

  • A participant leases a house from Common Wealth with an option to purchase.
  • A portion of their monthly rental payment is deposited into an account over a period of time up to 3 years to accrue a down payment of 3 to 5%.
  • Other sources can be used for a down payment such as personal savings or a security deposit. Additional down payment assistance grants or loans may be available to help with down payment or closing cost assistance.
  • Once the down payment is accrued, the participant can purchase the house from Common Wealth.
  • A 0% second mortgage for approximately 25 to 35% of the value of the house will be used to help decrease the housing costs.
  • A 50/50 shared appreciation model, which limits the amount of appreciation an owner will receive, will be used to keep this housing affordable into the future.
  • A participant of our Affordable Home Ownership Program needs to have a minimum gross annual income of approximately $27,000 to $35,000 per year (depending on house values and financing costs), along with a satisfactory credit rating and a stable employment history.
  • In order to qualify for this program, interested persons must also have an income below 80% of Dane County median income, adjusted for family size.
  • Participants must be willing to participate in homeownership counseling which could consist of monthly budget and credit building education as well as home maintenance skills