Financing Options at Point Gardens

Three Real-World Financing Scenarios at Point Gardens

One of the biggest misconceptions about buying a new home is that it requires a large down payment. In reality, many buyers are purchasing homes with as little as 3% down, and sometimes even less cash out of pocket depending on the loan programs available to them. 

To illustrate how this works in practice, we asked our friend Dave Klem with Old National Bank to model several realistic (but fictitious) financing scenarios using a purchase price of $369,900, which falls within the current price range of homes at Point Gardens in Poynette.

For underwriting purposes, the following assumptions were used:

• Estimated property taxes: $6,214/year ($517.86/month)
• Estimated homeowners insurance: $1,500/year ($125/month)
• Point Gardens HOA dues: $200/year ($16.67/month)

Actual taxes, insurance costs, and interest rates will vary depending on the borrower and property. Below are several example buyer profiles and how their financing could be structured. 

The Teacher + Healthcare Worker

Current Situation

Sarah and Daniel rent a duplex in DeForest and have two young kids. They’ve saved about $10,000, but like many families, they’re concerned about the upfront cost of buying. Their goal is simple: stability for their family and a place to settle long-term.

Loan Program Used

Because their income falls within the limits for a 4-person household, they qualify for WHEDA financing, which can offer:

• Below-market interest rates
• Down payment assistance through the WHEDA Easy Close program

Example Financing Structure

Primary Mortgage

• Principal & Interest: $2,093.88
• Property Taxes: $517.86
• Insurance: $125.00
• PMI: $95.68
• HOA: $16.67

Estimated Payment for 1st Mortgage: $2,849.09

WHEDA Easy Close Second Mortgage

• Loan Amount: $17,000
• Second Mortgage Payment: $186.61

Estimated Total Housing Payment: $3,035.70

Estimated Cash to Close: $0

In this scenario, the Easy Close second mortgage covers the down payment, closing costs, and prepaid expenses, allowing the family to purchase with minimal upfront cash. For many households, programs like this can make the difference between continuing to rent and owning a home.

The Young Professional Couple

Current Situation

Alex and Megan currently rent a two-bedroom apartment in Sun Prairie for $1,950/month. Like many young professionals, they’ve watched rent steadily increase and would prefer to start building equity. 

They’ve saved about $18,000 and are drawn to Point Gardens because of the modern home design, garden spaces, and sustainability focus.

Loan Program Used

Because their income is above the limits for WHEDA and other income-restricted programs, their best option is a conventional first-time buyer mortgage. This allows qualified buyers to purchase with as little as 3% down.

Example Financing Structure

• Purchase Price: $369,900
• Loan Amount (97% LTV): $358,803

Primary Mortgage

• Principal & Interest: $2,151.21
• Property Taxes: $517.86
• Home Insurance: $125.00
• PMI: $95.68
• HOA: $16.67

Estimated Total Monthly Payment: $2,906.42

Estimated Cash to Close: $17,000

 Which includes:

• 3% down payment
• Estimated closing costs
• Prepaid taxes and insurance
• First year homeowner’s insurance

Funds can come from personal savings, family gifts, or a combination of both. For Alex and Megan, this means trading rising rent for ownership in a brand-new home designed for energy efficiency and long-term value.

The Single First Time Buyer

Current Situation

Jordan currently rents an apartment in downtown Madison for $2,100/month and has saved about $12,000. He likes the idea of modern design, low-maintenance living, and building equity instead of paying rent.

Loan Program Used

Jordan qualifies for WHEDA financing and is also under 80% of county median income, which means:

• Access to a below-market interest rate
• Reduced-cost PMI

Example Financing Structure

Primary Mortgage

• Principal & Interest: $2,093.88
• Property Taxes: $517.86
• Insurance: $125.00
• Reduced PMI: $47.84
• HOA: $16.67

Estimated Payment for 1st Mortgage: $2,801.25 

WHEDA Easy Close Second Mortgage

• Loan Amount: $11,097
• Second Mortgage Payment: $121.81

Estimated Total Housing Payment: $2,923.06 

Estimated Cash to Close: $6,000

In this case, Jordan chooses to use the Easy Close loan only for the down payment and pays the closing costs himself to keep the second mortgage smaller.

The Veteran 

Veterans may have access to one of the most powerful mortgage programs available; VA financing.

VA loans allow eligible buyers to purchase with:

• 0% down payment
• No monthly mortgage insurance

Example VA Loan Structure

Loan Amount (including VA funding fee): $377,852

Primary Mortgage

• Principal & Interest: $2,205.04
• Property Taxes: $517.86
• Home Insurance: $125.00
• HOA: $16.67

Estimated Total Monthly Payment: $2,864.57

Estimated Cash to Close: $6,000

If the borrower has a service-connected disability, the VA funding fee may be waived, which would lower the loan amount and payment.

The Big Takeaway

These examples highlight something many buyers don’t realize:

Buying a new home doesn’t always require a large down payment.

Depending on income, household size, and eligibility for programs like WHEDA or VA financing, buyers may be able to purchase with:

• 3% down
• Little to no cash out of pocket
• Below-market interest rates

Homes at Point Gardens currently start around $369,900, making them priced on average over $100,000 less than comparable homes in Dane County. 

✅ Curious what you might qualify for?

📲 Reach out connect with Dave to explore options available to you today. 

 Or browse available homes here.