Housing for Long-Term Affordability 

Since 1999, Common Wealth has purchased, rehabbed, and re-sold 34 properties to first-time lower-income home buyers in our Lease-Purchase program. Most of these homes have been two-unit properties, though some were single-family homes. 

The goal of the Lease-Purchase program is to provide affordable home ownership opportunities and one-on-one homeownership counseling. A resident in this program may rent a house for a period of time with an option to buy, as a portion of their rent payment is deposited into a down payment account. 

Common Wealth provides deferred payment second mortgage financing which helps to reduce housing costs, and a shared appreciation agreement is created to help keep these Lease-Purchase Program houses affordable into the future for low to moderate-income households.

Lease to 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, 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 deferred payment 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.

Qualifications

• A participant must have satisfactory credit rating and a stable employment history.

• A participant must qualify for a first-position mortgage with a lender who will have different qualifying criteria than Common Wealth Development.

• In order to qualify for this program, interested persons must also have an income at or below 80% of Dane County median income, adjusted for family size, at the initial time of occupancy.

• Dane County income limits (2024):

• The household must not own other property at the time of closing.
• 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.

• This opportunity does not require you to work with a Realtor to purchase a property. Please contact homes@cwd.org if you need assistance through the application process.

For questions email homes@cwd.org