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Application Process
The Application Process
- Complete Online Pre-Qualification Questionnaire
If pre-qualification is approved:
- Create User Account
- Complete Online Application Form
- Submit $100 nonrefundable or transferable Application Fee
- Upload Preliminary Required Documents
- copy of pre-approval letter from Mortgage Lender
- Complete Background Check (within three days of receiving emailed link)
If approved for the Heart & Homestead Earned Down Payment Incentive Program:
- EDWC provides Letter of Approval
- Upload Additional Required Documents Within 90 Days of Approval
- copy of the fully executed Home’s Offer to Purchase OR
- copy of the fully executed Home’s Construction Contract (if one has not already been submitted)
- copy of the Commitment for Title Insurance as ordered by the Lender
- Lender Certification completed by the Lender
- copy of the Home’s Appraisal (as built if new construction) as ordered by the Lender
- wire or check instructions on Lender or Title Company letterhead
- copy of Loan Estimate provided by Lender
- Closing Disclosure Document
EDWC will review all of the required documents and may reach out to you directly through email if additional information is needed. Once all documents have been reviewed and approved, Applicants will be sent an Incentive Agreement to sign via Adobe Sign.
EDWC will wire the Down Payment Incentive Funds directly to the Title Company on the date of the closing on the home.
Recipients will sign the mortgage which will secure the Incentive Funds at the closing meeting with their Lender.
Definition
Single family home – A fully detached single family residence which is located on an individual lot. Single family dwelling units are designed for one family and have no roof, wall, or floor in common with any other dwelling unit.
Two family residential – A building designed for two separate dwelling units in which one dwelling unit may have a roof, wall, or floor in common with another dwelling unit.
Multi-family residential – A building or structure designed for three or more separate dwelling units in which one dwelling unit may have a roof, wall, or floor in common with another dwelling unit.
Newly constructed home – A dwelling unit that has not been previously occupied.
Existing home – A home that was owned and occupied by a previous person and is new to the applicant.
Owner-occupied home – A dwelling unit that is lived in by the legal owner of the home.
Primary residence – The principal or main dwelling unit which a person lives in the majority of the year.
Commonly Asked Questions
What can the Down Payment Incentive funds be used for?
- Down payment for constructing a new home (must include offer to purchase land and a construction contract with the builder); purchasing a newly constructed home; purchasing an existing home.
- Closing costs (including points)
- Renovation costs such as remodeling of/upgrades to a home that is both new to the applicant and habitable
- Escrow reserves
What can’t the funds be used for?
- Refinancing
Who should we list as the applicant vs co applicant?
- The “applicant” listed on your Down Payment Incentive Application should be the person listed first on all mortgage documents. The “co applicant” would be the person listed second, if there is a second person such as a spouse or partner that will also be listed on the mortgage document.
What is the difference between a recipient and an applicant?
- An applicant becomes a “recipient” once they have signed and returned the Incentive Agreement. This signifies that the person has completed all necessary steps to receive their Down Payment Incentive.
What does it mean for my home to be my primary residence?
- A primary residence is an individual’s main owner-occupied dwelling unit/residence in which they live.
What does the $100 application fee cover?
- The $100 application fee covers processing costs for the application, including background checks for each applicant.
Does the incentive count as taxable income?
- The incentive will NOT immediately count as income the day you receive it because it has not yet been earned (it’s an obligation instead). As you volunteer and donate funds to approved non-profits, you will, however, get a 1099 annually for the incentive earnings you have accrued the previous year as a result. So, while the initial lump sum disbursement won’t count as income, whatever you earn every year will be reportable. How much income falls in any given tax year will thus depend on how quickly you earn. What tax liability this earned incentive income represents for you, if any, is a function of your individual tax situation and thus a question for your tax preparer and not something we are able to advise.
Questions? We Can Help
If you have questions or encounter issues during the application process, free to reach out to EDWC at info@edwc.org or call 262-335-5769.
List of Required Documents
You will be required to submit the following with your application:
- $100 nonrefundable or transferable Application Fee
- Copy of pre-approval letter from Mortgage Lender
If your application is approved for the Heart & Homestead Earned Down Payment Incentive, you will be required to submit the following documents within 90 days:
- Copy of the fully executed Home’s Offer to Purchase OR Copy of the fully executed Home’s Construction Contract (if one has not already been submitted)
- Copy of the Commitment for Title Insurance as ordered by the Lender
- Lender Certification completed by the Lender
- Copy of the Home’s Appraisal (as built if new construction) as ordered by the Lender
- Wire or check instructions on Lender or Title Company letterhead
- Copy of Loan Estimate provided by Lender
- Closing Disclosure Document