With a reverse mortgage Wisconsin homeowners use, equity in the home becomes cash, and state law says your lender must be federally approved. The Home Equity Conversion Mortgage, called the HECM, is what most borrowers pick. For the basic loan structure, check out how a reverse mortgage works. These Wisconsin loans have a median home value of $330,000 and a median initial principal limit of $141,900. Before paying off loan costs and any mortgage you hold, the total pool of funds you can access is your principal limit. In fiscal year 2025, the federal government backed 204 HECMs in Wisconsin. Right in the state, you'll find 4 HUD-approved counseling agencies.
Getting property tax relief through WHEDA and the $24,680 Homestead Credit
Rules from the federal Consumer Financial Protection Bureau apply no matter which state you're in. On a HECM, you're required to stay current with property taxes and homeowners insurance. The home must be your primary residence, and you need to keep it well maintained. Your loan could default if you fall behind on property taxes, which is why these state programs are so important.
Deferral loans for property taxes from WHEDA
Elderly homeowners can get property tax deferral loans through the Wisconsin Housing and Economic Development Authority, known as WHEDA. You can borrow from the state to settle your local tax bill through a deferral loan. No age, income cap or cutoff date appears on the state's revenue page. You can call WHEDA at (800) 334-6873 or email info@wheda.com to ask how to apply.
The Lottery and Gaming Credit and the Homestead Credit
If you're a retiree 62 or over, or a resident with a disability, you could be eligible for the Homestead Credit. You have to reside in Wisconsin the entire year, and the credit gets claimed on your state income tax return. Your total household income, counting both taxable and nontaxable sources, has to stay below $24,680 to qualify in 2025. You may also qualify for the Lottery and Gaming Credit if you live in Wisconsin and own your main residence. It reduces what you owe by appearing right on your property tax bill.
Are your loan terms different because of Wisconsin statutes 138.058 and 138.056?
A specific law for these loans exists in Wisconsin under section 138.058 of the Wisconsin Statutes. To make loans insured under 12 USC 1715z-20, a qualified lender must get HUD approval, per subsection 138.058(1)(a). That's the federal HECM program. So, Wisconsin's reverse mortgage lenders operate under federal reverse mortgage requirements.
A growing balance on a reverse mortgage is allowed by state rules too. Typically, section 138.056 of Wisconsin's variable rate loan rules caps negative amortization. Your balance grows through negative amortization when you don't make monthly payments that cover the interest. Those variable rate caps don't cover reverse mortgages as defined in section 138.058(1)(b), according to section 138.056(8)(c).
Submitting a complaint to the Wisconsin Department of Financial Institutions
Mortgage companies are supervised by the Wisconsin Department of Financial Institutions, or DFI, via its Division of Banking. For issues with a mortgage banker, broker or loan originator, use the separate Mortgage Banking complaint page that DFI provides.
Wisconsin homeowners can also complain to the Licensed Financial Services section of the Division of Banking, which covers providers of financial services that aren't deposit-taking institutions. These providers lend money but don't take deposits, so you won't find checking accounts with them. You can call this section at (608) 261-7578 for help with a reverse mortgage Wisconsin lender.
