Property Tax Deferral Loan Program

Program Description
The Property Tax Deferral Loan Program (PTDL) was created by the legislature to help Wisconsin resident homeowners pay their property taxes.  The PTDL Program is administered by the Wisconsin Housing and Economic Development Authority (WHEDA).  The PTDL Program allows individuals 65 or older with a limited income to convert equity from their home into cash to pay all or a portion of their property taxes.  Approved borrowers make no required monthly payments on principal and interest until ownership of the property is transferred, or until the borrower no longer lives in the home.

An applicant may borrow up to $2,500 each year that they qualify for the program.  The interest rate is dictated by Wisconsin Statutes 234.635  (Loans shall bear interest at a rate equal to the prime lending rate at the time the rate is set, as reported by the federal reserve board in federal reserve statistical release H. 15, plus 1% which shall be set no later than October 15th of each year, and that rate shall apply to loans made in the following year) this program year is 9.25% compounded annually and is fixed for the life of the loan.  A borrower may pay back all or a portion of the loan at any time.

Eligibility Requirements

A borrower must be 65 years of age or older on the date of application and if married, the spouse must be 60 years of age.  All co-owners of the qualifying home must be at least 60 years of age on the date of application.  If the borrower or the borrower's spouse is/are permanently disabled, there is no minimum age requirement for the spouse.
The borrower must own a qualifying insured home in Wisconsin and reside there for all of the year.  A borrower is considered as living in his/her home even if they temporarily live in a health care facility, such as a nursing home or hospital.

The amount of outstanding liens and judgments on the home, not including PTDL and/or WHEDA rehabilitation loans, may not exceed 50 percent of the assessed value of your home for property tax purposes.

A participant must insure their home and WHEDA must be named as a lien holder on the fire and extended casualty and flood insurance policies.  All outstanding tax liens must be satisfied prior to participating in the program.

How will a PTDL loan affect ownership value?

To protect WHEDA's interest and ensure repayment of the loan at a later date, WHEDA will file a lien on the property.  Like a mortgage, a lien reduces the borrower's equity in the  property.

For more information contact: