Union Home Mortgage Home Start Program: A Smarter Path to Homeownership
For many buyers, saving enough for a down payment is the single biggest hurdle to purchasing a home. Union Home Mortgage's Home Start Program was created to eliminate that barrier by offering qualified borrowers a way to buy a home with little to no money out of pocket through an FHA-backed mortgage and built-in down payment assistance.
How the Program Works
The UHM Home Start Program pairs a 30-year fixed-rate FHA loan with a repayable second mortgage that covers either 3.5% or 5% of the home's purchase price.
That second loan functions as down payment assistance (DPA), helping you cover upfront costs like your down payment and closing expenses.
Unlike many assistance programs, Home Start is straightforward:
- No first-time homebuyer requirement
- No special education course needed
- Standard FHA credit flexibility
- Available nationwide where Union Home Mortgage is licensed
Eligibility and Key Features
- Loan Type: FHA 30-Year Fixed
- Purpose: Purchase only
- DPA Options: 3.5% or 5% repayable 10-year second mortgage
- Property Types: 1 - 2 unit homes, including permanently affixed manufactured homes
- Credit: Follows FHA guidelines (scores down to 500 may qualify)
- Occupancy: Primary residence only
- Underwriting: Automated approval via DU or LPA (manual allowed with review)
- UHM Overlays: None - standard FHA rules apply
Servicing for the first mortgage is retained by Union Home Mortgage, with post-closing servicing handled by BSI Financial Services.
Why Home Start Stands Out
The Home Start Program gives buyers more flexibility without adding red tape.
Where other down payment assistance programs impose rigid income caps or geographic restrictions, Home Start keeps it simple - if you qualify for FHA, you may qualify here.
That makes it especially useful for:
- Buyers with strong income but limited savings
- Renters who can afford a mortgage payment but not a large down payment
- First-time or move-up buyers who need to conserve cash
For more about FHA loan basics, see my blog:
👉 FHA Home Loans in Wisconsin - The 2025 Guide for First-Time Buyers.
Example: Buying a $300,000 Home Using Home Start
Let's look at how this program works in real numbers.
Assume you're purchasing a $300,000 home using the UHM Home Start 5% Down Payment Assistance option.
| Item | Amount | Explanation |
|---|---|---|
| Purchase Price | $300,000 | Agreed price of the home |
| FHA Required Down Payment (3.5%) | $10,500 | Standard FHA minimum |
| Home Start Assistance (5%) | $15,000 | 10-year repayable second mortgage provided by UHM |
| Closing Costs & Prepaids (Estimate) | $6,000 | Covers title, taxes, insurance, and escrows |
| Total Funds Required to Close | $16,500 | $10,500 down + $6,000 closing costs |
| Funds Covered by Home Start Program | $15,000 | Nearly all of your upfront costs |
| Approximate Out-of-Pocket at Closing | $1,500 or less | Depending on credits and final settlement |
Result:
Instead of needing over $16,000 in cash, the buyer brings roughly $1,500 or less to closing - while still gaining all the benefits of an FHA loan and a 30-year fixed payment.
This is what makes the program so powerful: it turns renters into homeowners without depleting savings or delaying the purchase another year or two.
Fine Print and Considerations
- The 5% second mortgage is repayable over 10 years, typically with a small, fixed monthly payment.
- DPA funds cannot be used to pay off other debt or for principal reduction.
- The property must meet FHA appraisal and condition standards.
- 3 - 4 unit properties are not eligible.
- Homebuyer education is not required, but understanding your full payment structure is encouraged.
For a broader look at budgeting and upfront costs, check out
👉 Budgeting for Your First Home in Wisconsin | 2025 Mortgage Guide.
And for additional clarity on down payment assistance, see this helpful overview from Investopedia: What Is a Down Payment Assistance Program?
Who Benefits Most
The Home Start Program is ideal for:
- First-time buyers who have stable income but minimal cash reserves
- Borrowers re-entering the market after renting or relocating
- Individuals with solid credit but limited savings
- Buyers in competitive markets who need fast, straightforward financing
The Bottom Line
Union Home Mortgage's Home Start Program turns the biggest homebuying obstacle - the down payment - into an opportunity.
It gives qualified borrowers a flexible, accessible path to homeownership without the heavy cash requirement.
If you're ready to see whether you qualify, my team and I can walk you through the details, run payment scenarios, and help you determine the best structure for your budget.
Adam Zeman - Mortgage Loan Originator (NMLS #870441)
Union Home Mortgage
414-975-2654 | azeman@uhm.com | www.mkemortgage.com
Apply Online with Adam Zeman