• Facebook
  • Pinterest
  • Twitter
  • Linkedin

Milwaukee Neighborhood News Service

Your neighborhood. Your News.

newsMilwaukee NNSMilwaukee NNSSearch
Subscribe to NNS today!
Advertisement
  • Home
  • News
    • Arts and Recreation
    • Community
    • Economic Development
    • Education
    • Health and Wellness
    • Housing
    • Public Safety
    • NNS Spotlight
    • Special Report
  • Posts From Community
    • Submit a Story
  • Community Voices
  • How To
  • Multimedia
    • NNS Local Video
    • Photos
    • NNS on Lake Effect
    • NNS WGLB 1560 Radio
  • Subscribe
  • Donate
  • About
    • Staff
    • Partners
    • News 414
    • The neighborhoods we cover
Milwaukee Neighborhood News Service
Milwaukee Neighborhood News Service

Diederich College of Communication, Marquette University

You are here: Home / Home / Carousel / New lending program joins fight to revive foreclosed homes

New lending program joins fight to revive foreclosed homes

February 7, 2014 by Kelly Meyerhofer 3 Comments

Share this...
Share on Facebook
Facebook
Pin on Pinterest
Pinterest
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
A grant from Milwaukee’s Department of City Development will provide homebuyers with grants to rehab foreclosed homes. (Photo by Scottie Lee Meyers)

Milwaukee’s Department of City Development will provide homebuyers with forgivable loans to rehab foreclosed homes. (Photo by Scottie Lee Meyers)

Milwaukee’s Department of City Development is rolling out a new lending program later this month to help homebuyers rehab foreclosed properties purchased from the city.

The city’s new Homebuyer Assistance Program would provide forgivable loans of up to $20,000 to help buyers of tax-foreclosed properties rehab those properties. City officials say that buyers could couple this program with an existing public-private partnership between PyraMax Bank and the Wisconsin Housing and Economic Development Authority (WHEDA) to help finance and renovate their buildings.

The PyraMax/WHEDA Home Improvement Loan Program provides rehab financing of up to $50,000 in a revolving loan program, and is not restricted to purchasers of foreclosed properties. Both the PyraMax program and the forthcoming city program are intended for owners who occupy their properties. Those who want to participate in the city’s rehab program can seek mortgages from any lender.

An abandoned home awaits a new owner. (Photo by Scottie Lee Meyers)

An abandoned home awaits a new owner. (Photo by Scottie Lee Meyers)

Sam Leichtling, program director of the city’s Neighborhood Improvement Development Corp., praised the PyraMax program’s flexibility. Other similar programs target people with certain income levels or first-time homeowners but the PyraMax program is not restricted to those buyers.

According to Gary White, community development manager at PyraMax Bank, “It’s not as arbitrary as some programs might be, but we want to make sure that you have a financial situation that’s stable enough that you can become a successful homeowner.”

Added White, who oversees the bank’s affordable lending programs, “We look primarily at your credit history in the last two years. So if you’ve had credit issues and you’ve righted the ship, so to speak, you’re a good candidate. (However), if you’ve got outstanding delinquencies and serious credit issues, we don’t want to put you in a situation where you’re going to fail.”

PyraMax and other banks offer accounts to build up potential borrowers’ credit scores regardless of previous credit history. Select Milwaukee and ACTS can also work with individuals to improve their credit scores.

More than $900,000 will be available through the city’s Homebuyer Assistance Program to help at least 40 homebuyers who purchase city-owned properties. Of that amount, about $266,000 comes from a Federal Home Loan Bank grant and city funds make up the rest.

WHEDA is holding $8 million in a revolving fund, which is expected to assist approximately 320 households. As loans are repaid, the proceeds may be loaned out again to other borrowers, said Geoffrey Cooper, WHEDA’s director of single-family homeownership.

Another city program, funded through the federal Neighborhood Stabilization Program (NSP), helped more than 100 families acquire and rehabilitate foreclosed homes from 2009-2013. Many of these families got a first mortgage through PyraMax.

The city holds titles to more than 1,000 foreclosed properties, with about 500 expected to be demolished this year. As time goes on, the number of foreclosed properties in Milwaukee is expected to rise. As of last year, there were more than 3,000 properties going through the foreclosure process.

For more information about the program, contact Gary White at (414) 747-0894 or ACTS at (414) 933-2215.

Clarification: The original published article left the incorrect impression that the Homebuyer Assistance Program and the PyraMax/WHEDA Home Improvement Loan Program are directly connected. They are separate programs.

Share this...
Share on Facebook
Facebook
Pin on Pinterest
Pinterest
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin

Filed Under: Carousel, Home, Housing, Neighborhoods, News Tagged With: Department of City Development, foreclosure, house, housing, wheda

Avatar

About Kelly Meyerhofer

Comments

  1. AvatarDan Adams says

    February 7, 2014 at 9:19 am

    Maybe I’m missing it somewhere, but does the homeowner have to live in the property? Or can investors also take advantage of this program?

    Reply
  2. AvatarSam Leichtling says

    February 10, 2014 at 7:07 am

    Mr. Adams:
    The City of Milwaukee’s Homebuyer Assistance Program is limited to owner occupant homebuyers, as is the PyraMax/WHEDA loan program. The City also offers a Rental Rehabilitation program which provides experienced and responsible investor owners with assistance in rehabilitating tax foreclosed properties. More information about the program is available here: http://city.milwaukee.gov/ImageLibrary/Groups/cityDCD/housing/nidc/NSP/RRExpansionSept2013.pdf.
    Thank you,
    Sam Leichtling

    Reply
  3. Avatarshyaam bates says

    April 23, 2014 at 2:49 pm

    Do these forgivable loans require a certain credit score? And are these loans just for city owned houses?

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

Top Stories

Advertisement

How To …

How residents 65 and older can register for a coronavirus vaccine

Vaccines will be available for those 65 and older as part of Phase 1B of the distribution plan.

More "How To" articles

Advertisement

Recommended Reading

A Vaccine Reality Check

The Atlantic

UWM study on the state of Black Milwaukee describes the city as ‘the epitome of a 21st century racial regime’

Milwaukee Journal Sentinel

Videos Show How Federal Officers Escalated Violence in Portland

The New York Times

These mayors want to fight Covid-19 and the recession with one big idea: A guaranteed income

Vox

The World John Lewis Helped Create

The Atlantic

News

  • Arts and Recreation
  • Economic Development
  • Education
  • Health and Wellness
  • Housing
  • Public Safety
  • NNS Spotlight
  • Special Reports
  • Multimedia
    • NNS Videos
    • Photos
    • NNS on Lake Effect Radio

Engage with us

  • Posts from Community
  • Community Voices
  • Submit a Story

About NNS

  • Staff
  • Partners
  • News414
  • The neighborhoods we cover
  • Internship opportunities
  • Careers
  • Terms of use
  • Advertise

Connect with us

  • Facebook
  • Twitter
  • Instagram
  • YouTube
  • LinkedIn
  • RSS feed

Communities

Contact

mailing address
Milwaukee Neighborhood News Service
Diederich College of Communication
Marquette University
1131 W. Wisconsin Ave.
Johnston Hall 430
Milwaukee, WI 53233

email
info@milwaukeenns.org

phone & fax
PHONE: 414.604.6397 FAX: 414.288.6494

Milwaukee Neighborhood News Service is a project of Diederich College of Communication and Marquette University.
© 2020 Milwaukee Neighborhood News Service. Terms of use.
1131 W. Wisconsin Ave., Milwaukee WI 53233 • info@milwaukeenns.org

Copyright © 2021 · News Pro Theme on Genesis Framework · WordPress · Log in