HomeStretch Down Payment Assistance First-Time Homebuyer Assistance Programs

HomeStretch Down Payment Assistance: Your Shortcut to Owning a Wyoming Home

Buying your very first place in the Equality State is thrilling—and intimidating. Closing costs, appraisal fees, and, above all, the down payment can feel like a ten-foot snowdrift standing between you and your new front door. The HomeStretch Down Payment Assistance program exists to plow that barrier away. This in-depth guide unpacks everything you need to know in 2024: how the loan works, who qualifies, and how to boost your odds of approval.

Table of Contents

1. How the HomeStretch Down Payment Assistance Program Works
2. Who Is Eligible for HomeStretch Assistance?
3. How Much Money Can You Get?
4. Do You Have to Repay the Assistance?
5. Step-by-Step Application Checklist
6. Insider Tips & Micro-Story
7. FAQ

How Does the HomeStretch Down Payment Assistance Program Work?

At its core, HomeStretch Down Payment Assistance is a second mortgage provided by the Wyoming Community Development Authority (WCDA). While your primary loan—FHA, VA, USDA, or conventional—finances most of the purchase, HomeStretch supplies the extra cash you need for the down payment and eligible closing costs. Think of it as a financial booster rocket that ignites at closing, propelling you into homeownership without draining your savings.

A few nuts and bolts:

• The loan has a 0% interest rate; no monthly payments are due.
• The balance is payable when you sell, refinance, or finish paying off the first mortgage.
• Funds are wired directly to the closing table, meaning less cash out of your pocket up front.

Because the assistance is structured as a lien, you maintain skin in the game while still easing your initial cash burden—a win-win for new homeowners and statewide lending stability.

Who Is Eligible for HomeStretch Assistance in Wyoming?

Eligibility rules look intimidating at first glance, but they boil down to three primary buckets: buyer, property, and income.

Buyer Requirements

• First-time buyer status, defined as no ownership interest in a primary residence during the past three years. Certain veterans are exempt.
• 640 minimum FICO for FHA/VA/USDA; 680 for conventional loans.
• Completion of an approved homebuyer education course before closing.

Property Requirements

• Located within Wyoming’s borders—yes, Jackson Hole luxury condos count if they meet price limits.
• One- to two-unit dwellings, including modular and some manufactured homes with permanent foundations.
• Purchase price must not exceed WCDA’s county-specific caps (ranging from roughly $350,000 in Hot Springs to about $670,000 in Teton as of mid-2024).

Income Requirements

• Household income must fall below WCDA thresholds, adjusted for family size and county. For example, a family of four in Laramie County can earn up to about $109,000, according to the 2024 release.
• Income is measured using compliance income, which may differ from what your mortgage lender uses to qualify you.

By the way, roughly 81% of WCDA applicants meet these benchmarks on their first try, internal agency figures reveal. Translation: If you qualify for a mortgage, you’re likely to pass the HomeStretch filter as well.

How Much Money Can You Get from the HomeStretch Program?

The program caps assistance at the lesser of $10,000 or 5% of the home’s purchase price. Here’s what that looks like in real numbers:

Remember, these funds can be blended with seller credits or gift money, but the total cannot exceed the actual cash needed at closing—no “cash back” is allowed.

Does the HomeStretch Assistance Have to Be Repaid?

Yes, but not until after one of three trigger events:

1. You sell the home.
2. You refinance the first mortgage.
3. You fully pay off that first mortgage.

Because the loan carries a zero-percent rate, the payoff amount equals the original principal—no surprise interest charges lurking in the background. Many borrowers ultimately refinance into lower-rate loans or sell and simply roll the payoff into their settlement sheet. A WCDA snapshot shows that roughly 60% of borrowers repay within seven years.

Step-by-Step Application Checklist

Ready to dive in? Tape this checklist to your fridge and cross off each step:

1. Contact a WCDA-approved lender—there are more than 40 statewide.
2. Get pre-qualified for your first mortgage and verify HomeStretch funds availability.
3. Complete homebuyer education (online or in person) and print the certificate.
4. Shop for a home within WCDA price limits and write an offer contingent on receiving assistance.
5. Submit HomeStretch documents (income, tax returns, loan estimate) via your lender.
6. Sign the second mortgage note and deed of trust at closing.
7. Move in, hang photos, and invite the neighbors for chili.

Insider Tips & A Real-World Micro-Story

Financial aid programs can feel as dry as a high-plains summer, so here’s a quick true-to-life vignette. In Casper, schoolteacher Megan and oil-field technician Luis worried that rising rents would swallow their savings. Their lender introduced them to HomeStretch Down Payment Assistance. With $8,100 in zero-interest aid, the couple kept $5,000 in their emergency fund, negotiated a seller credit for repairs, and still brought less than $1,000 to closing. Six months later, a hailstorm damaged their roof—those untouched savings paid the deductible without a flicker of stress. Moral of the story: cash reserve > empty checking account.

Five Pro Moves

• Apply early in the month. WCDA releases funds on a rolling basis, and pipelines thin out after the 15th.
• Layer programs. Pair HomeStretch with county grants like Cheyenne LEAP for even lower out-of-pocket costs.
• Mind the debt ratio. WCDA allows up to 45% DTI, but staying below 40% improves underwriting speed.
• Lock your rate strategically. Your first-mortgage rate influences affordability more than the zero-percent second lien—don’t rush.
• Keep an email trail. Screenshot every approval notice and attach to a single “Home Purchase” folder; auditors love clean records.

Frequently Asked Questions

Ready to Take the First Step?

Owning a Wyoming home shouldn’t feel like climbing Gannett Peak without ropes. Let our team guide you through HomeStretch Down Payment Assistance, mortgage options, and neighborhood insights—so you can focus on choosing paint colors, not crunching numbers. Schedule a free 15-minute strategy call today and see how close your front-door keys really are.