Buying your first home in the Madison area is a big step, and choosing the right mortgage lender is one of the first decisions you will make. This guide explains what first-time buyers in Dane County and southern Wisconsin should look for in a lender, the loan options that can help you buy sooner, and how to get pre-approved with a local credit union.
What to look for in a first-time homebuyer lender
Not every lender is set up for first-time buyers. As you compare your options, look for a lender that offers:
•  Low down payment loan options, so you do not have to wait years to save.
•  First-time homebuyer programs, including Wisconsin programs like WHEDA.
•  Local loan officers who know the Wisconsin housing market and can meet with you in person.
•  In-house guidance and education, so you understand each step before you sign.
•  Clear, comparable quotes, so you can weigh the full cost of each offer.
A lender that covers these points will make your first purchase less stressful, and often less expensive.
First-time homebuyer loan options at Heartland Credit Union
Heartland Credit Union is a Madison-based, member-owned credit union that offers mortgage options built for first-time buyers. Heartland is on the Wisconsin Housing and Economic Development Authority (WHEDA) approved lender list, so you can apply for a WHEDA loan through Heartland. WHEDA’s two first mortgage programs, WHEDA Advantage Conventional and WHEDA Advantage FHA, are state programs designed to make homeownership more affordable for qualified Wisconsin buyers. Both can be paired with WHEDA down payment assistance. Household income limits and pre-purchase homebuyer education apply, so ask a Heartland loan officer which WHEDA program fits your situation.
Heartland also offers the HomeReady mortgage, a low down payment conventional loan aimed at first-time and lower-income buyers, along with a full range of fixed-rate and adjustable-rate options. Many of these loans are structured so that first-time buyers may not need a large down payment saved, which can help you buy a home sooner. First-time buyers may also qualify for a closing cost credit. You can review the current loan options, credit details, and eligibility on Heartland’s first-time homebuyer page.
For current rates and disclosures on every mortgage product, see Heartland’s mortgage rates page.
What counts as a first-time homebuyer
You do not have to be buying your very first property ever to qualify for many first-time buyer programs. Heartland defines a first-time home buyer as anyone who is purchasing the property, will reside in it as a principal residence, and has had no ownership interest in a residential property, sole or joint, during the three-year period before the date of closing. If you have not owned a home in the last three years, you may still qualify.
How to get pre-approved in Madison
Getting pre-approved early tells you what you can afford and shows sellers you are a serious buyer. Heartland uses a simple three-step process:
Step 1: Complete an application. Apply directly online, or visit one of Heartland’s branch locations.
Step 2: Get approved. Heartland’s team reviews your application and notifies you as soon as possible.
Step 3: Start shopping. Once you are approved, you can start shopping for your first home with a clear budget.
You will work with Heartland’s mortgage lending team, including a dedicated VP of Mortgage Lending (NMLS #517356) and local loan officers whose profiles are listed on the first-time homebuyer page. Because they are based in the Madison area, you can meet with a real person who knows the local market.
Credit union, bank, or mortgage broker: how to compare
First-time buyers often wonder whether to work with a credit union, a bank, or a mortgage broker. It helps to understand the difference:
•  A credit union like Heartland is a member-owned, not-for-profit lender. Credit unions often keep the relationship local and return earnings to members through pricing and service.
•  A bank is a for-profit lender that may offer a wide product menu.
•  A mortgage broker does not lend money directly. A broker matches you with a third-party lender and is paid for arranging the loan, which can add a layer between you and the lender that ultimately services your mortgage.
Whichever you choose, compare offers the same way. Ask each lender for a Loan Estimate, the standardized form that shows the interest rate, the annual percentage rate, and the total costs of the loan. Comparing Loan Estimates side by side, on the same day, is the clearest way to see which offer costs less overall. The Consumer Financial Protection Bureau explains how to read a Loan Estimate on its consumer site.
Why work with a local Madison credit union
For many first-time buyers, working with a nearby lender makes the whole process easier. Heartland Credit Union is headquartered in Madison and serves members through 12 branch locations across Dane County and southern Wisconsin, plus a Digital Branch for online banking. Local loan officers can answer questions in person, and a Wisconsin-based team understands the local housing market and state programs like WHEDA.
If you are early in the process, Heartland’s first-time homebuyer page walks through the loan options and next steps, and you can become a member as part of getting started.
Get started
Buying your first home does not have to be intimidating. Compare lenders on the full cost of the loan, look for first-time buyer programs like WHEDA and HomeReady, and choose a local team you can reach when you have questions. To see your options and current rates, visit Heartland’s first-time homebuyer page and mortgage rates page, or contact a Heartland loan officer to get pre-approved.
Heartland Credit Union is a not-for-profit financial cooperative. Membership is subject to eligibility requirements. Federally insured by NCUA. Equal Housing Lender. All rates, fees, and account terms are subject to change. This page is provided for informational purposes only. Confirm current details at heartlandcu.org or by contacting Heartland Credit Union.
