Section 234.59. Homeownership mortgage loan program.

 

(1)   Definitions. In this section:

(a) “Authorized lender" means a bank, savings bank, savings and loan association, credit union or mortgage banker.

(d) “Eligible property" means any of the following:

1. A residential structure having a single dwelling unit, if the structure is or will be the principal residence of an applicant.

2. A residential structure having no more than 4 dwelling units, if one of the units is or will be the principal residence of an applicant and the structure is an existing dwelling first occupied at least 5 years before execution of a homeownership mortgage loan secured by the dwelling.

3. A dwelling unit in a condominium, a cooperative, or an unincorporated cooperative association, together with an interest in common areas, if the unit is or will be the principal residence of an applicant.

4. A residential structure having 2 dwelling units, if one of the units will be the principal residence of an applicant.

(e) “Existing dwelling" means a previously occupied dwelling.

(f) “Homeownership mortgage loan" means a loan to finance the construction, long-term financing or qualified rehabilitation of an eligible property by an applicant.

(h) “Mortgage banker" means a mortgage banker licensed under s. 224.72 , but does not include a person licensed under s. 138.09 .

(i) “New dwelling" means a dwelling which has never been occupied.

(j) “Principal residence" means residential real property in this state that an applicant maintains as a full-time residence, but does not use as a vacation home or for trade or business purposes.

(k) “Targeted area residence" has the meaning given in 26 CFR 6 a.103A-2 (b) (3).

(2)   Powers and duties of the authority. The authority shall establish and administer a homeownership mortgage loan program to encourage homeownership and to facilitate the acquisition or rehabilitation of eligible property by applicants. To implement the program, the authority:

(a) May enter into contracts permitting an authorized lender to make or service homeownership mortgage loans or both.

(c) Shall maintain a current list of authorized lenders.

(e) May enter into agreements to insure or provide additional security for homeownership mortgage loans or bonds or notes issued under s. 234.60 .

(3)   Loan conditions.

(bc)

1. Except as provided in subd. 3. , a homeownership mortgage loan may not be made to an applicant if the applicant's income exceeds the applicable level specified under 26 USC 143 (f).

2. For the purpose of subd. 1. , no earned income of any minor who will occupy the same dwelling unit as the applicant may be considered.

3. If the authority sets aside at least 20 percent of the proceeds of a bond or note issuance under s. 234.60 to fund home ownership mortgage loans for eligible properties that are targeted area residences, the authority may apply up to 33 percent of the proceeds that are set aside for that purpose without regard to the income of the applicant.

(c) The authority shall notify an authorized lender if a person's name appears on the statewide support lien docket under s. 49.854 (2) (b) . An authorized lender may not make a loan to an applicant if it receives notification under this paragraph concerning the applicant, unless the applicant provides to the lender a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a) .

(d) The authority may not make, buy, or assume a home ownership mortgage loan for an individual who does not have a social security number.

(e) A homeownership mortgage loan may not be made to finance the acquisition or replacement of an existing mortgage given by an applicant. This paragraph does not apply to any of the following:

1. A construction loan.

2. Temporary initial financing.

3. A loan made to finance a rehabilitation.

4. A loan made to pay off a loan funded or serviced by the authority.

1981 c. 349 ; 1983 a. 82 , 192 ; 1985 a. 29 ss. 2127 , 2261 to 2269 , 3200 (14) ; 1985 a. 332 ; Stats. 1985 s. 234.59; 1987 a. 27 , 359 ; 1987 a. 403 s. 256 ; 1989 a. 31 , 346 ; 1991 a. 221 ; 1993 a. 286 , 287 ; 1995 a. 27 , 404 ; 1999 a. 9 ; 2005 a. 75 , 441 ; 2007 a. 97 ; 2009 a. 2 ; 2013 a. 40 .