New construction in the Coulee Region is closer within reach than most buyers assume. You can build in Holmen, Onalaska, or La Crosse with no money down by pairing a zero-down program like USDA, VA, or a WHEDA loan with down payment assistance — and the region's active subdivisions give you real room to customize a home before the builder breaks ground.
I'm Jeff Thompson, a producing sales manager and senior loan officer at Granite Bank in Onalaska (NMLS #256028). I've spent 24 years in mortgage lending, including construction financing, and I work with Coulee Region buyers every week. This guide walks the strongest active new-construction neighborhoods across the three cities — who each one suits, what lots cost, and how the school and retail districts differ — then closes with the financing math that decides whether a build actually works without a large down payment.
Premier new construction in Holmen, WI
Holmen has the most active new-build market of the three cities, and most of the action centers on family-focused subdivisions with utilities already in the ground. Two developments stand out for 2026: Liberty Addition, a build-your-own-lot community north of the high school, and the Woodline Addition, a 60-homesite subdivision off Glomsrud Road. Both suit buyers who want a new home without resale competition — and both sit within the Holmen School District, which is the village's core draw for families.
Liberty Addition is a brand-new community just north of Holmen High School, and the developer is marketing it to both dream-home builders and investors. Single-family lots start at $79,900, fully improved with utilities at the lot line — meaning sewer, water, and power are already brought to the edge of each lot, which saves you the time and cost of running utilities yourself (@properties La Crosse). The neighborhood sits within walking distance of the school district, parks, the new public library, and the aquatic center (@properties La Crosse).
Woodline Addition, meanwhile, is a new 60-homesite residential development just off Glomsrud Road in Holmen, featuring quiet cul-de-sac courts, a scenic retention pond, and paved streets already in place (JDT Development). It's a smaller, quieter option than Liberty Addition — better for buyers who want fewer neighbors and more privacy without giving up the school district. The brokerage describes Onalaska as a growing suburb with lakefront properties, top-rated schools, and new housing developments (Julie Dela Homes).
Luxury and convenience in Onalaska, WI
Onalaska is the choice for buyers who want the newest homes closest to retail and the highway. The village is described as "a growing suburb with beautiful lakefront properties, top-rated schools, and new housing developments" (Julie Dela Homes) — the Coulee Region's most balanced new-build option between commute and lot size.
What sets Onalaska apart is location. It sits directly on the I-90 corridor between La Crosse and points west, putting the Valley View Mall and dozens of restaurants and clinics within a short drive — an advantage for a family buying new construction, because you are not waiting on an amenity buildout.
That activity shows up in the current listings. Active Onalaska homes on the market run from compact two-bedrooms like 1351 Lauderdale Pl at 1,117 square feet up to four-bedroom builds like 424 French Rd (2,100 sq ft) and 1550 Main St (2,892 sq ft) (RE/MAX). These are mostly single-family lots and townhomes from established local builders rather than one developer running a single tract — which means more variety in floor plans and more room to negotiate on finishes.
Most Onalaska builds cluster in planned subdivisions with city services already stubbed to the lot line, so a buyer's main decision is which builder and floor plan, rather than whether utilities will work. For financing, finished spec homes and recently built resales here qualify for standard first-mortgage programs — no construction loan required — which makes the path to closing faster and simpler than a ground-up build.
Infill and expanding neighborhoods in La Crosse, WI
La Crosse offers a different new-build experience: more infill lots and townhome-style development inside the city limits, closer to UW-La Crosse, the hospitals, and the downtown riverfront. Buyers here trade some lot size for walkability and shorter commutes — a good fit for professionals, downsizers, and first-time buyers who want city amenities without leaving the city.
La Crosse also runs a unique new-build program you will not find in the suburbs: the City of La Crosse Replacement Housing Program, which creates new, affordable, owner-occupied single-family homes. Its latest completed home, at 2010 14th Street, went on the market in mid-2026, with the city providing mortgage assistance so qualified buyers finance only about 55% of the home's cost (City of La Crosse). Applicants must earn below 80% of the county median income and qualify for a conventional 30-year mortgage.
The tradeoff is worth spelling out. La Crosse proper has fewer large greenfield subdivisions than Holmen or Onalaska because it is largely built out, so new construction tends to be single infill lots and small attached-home projects rather than whole neighborhoods. The gain is proximity: short drives to Gundersen Health System and Mayo Clinic Health System, two of the region's biggest employers (Julie Dela Homes).
For buyers who value that convenience, the infill route often means choosing a finished new home or a custom lot rather than a full subdivision — and that difference matters for financing, because a completed home qualifies for a straightforward mortgage rather than a construction loan. If you want the widest selection of lots and builders, plan to look in Holmen or Onalaska; if a short commute and city living matter more, La Crosse is worth the trade.
Can you buy a house with no money down in these Wisconsin areas?
Yes — and the Coulee Region is well positioned for it. Zero-down paths here come from three places: WHEDA loans with down payment assistance, USDA rural financing, and VA loans for eligible veterans. Each has its own credit, income, and property requirements, so the right one depends on your situation.
The most local option is WHEDA, the Wisconsin Housing and Economic Development Authority, which works through approved private lenders statewide. Its WHEDA Advantage Conventional loan requires no borrower funds on single-family homes and no minimum of your own money on most property types — the conventional program does not require borrower funds except on 2–4 unit properties, which call for 3% and six months' reserves (WHEDA). When you combine a WHEDA first mortgage with one of its two down payment assistance programs, you can reach 100% financing in many cases (WHEDA).
WHEDA's down payment assistance comes in two forms. The Easy Close DPA is a second mortgage of up to 6% of the purchase price, repaid as a 10-year fixed-rate loan at the same rate as your first mortgage. The Capital Access DPA lends $7,500 as a silent 30-year loan with 0% interest and no monthly payments — you repay it when you sell, refinance, or pay off the first mortgage (WHEDA). Note that Capital Access is funded on a limited, first-come basis — reservations opened again on January 15, 2026, with a property address required to reserve funds.
There are income and purchase-price caps, and first-time buyers must complete a home buyer education course. The conventional program requires a minimum credit score of 620, while the WHEDA Advantage FHA needs 640 (WHEDA). Both require owner-occupancy for the life of the loan.
Beyond WHEDA, two federal programs also deliver zero down in the region. USDA Rural Development loans require no down payment and are available in designated rural areas — and much of La Crosse County qualifies, so it is worth checking your specific address against the USDA eligibility map. VA loans let eligible veterans, active-duty members, reservists, and National Guard members buy with no down payment and no ongoing mortgage insurance. If you qualify for VA or USDA, you may not need any down payment at all (The Mortgage Reports).
One practical catch for new construction: if you are building on your own lot, you typically need a construction-to-permanent loan — a two-phase mortgage that pays the builder during construction, then converts to a fixed-rate home loan at move-in. That structure carries different credit and down payment requirements than a resale mortgage, and it must be in place before the builder starts digging. A finished spec home or recently built resale, by contrast, qualifies for a standard first mortgage with the zero-down options above.
The cleanest way to see which program fits is to run your numbers against your credit score, income, and the lot or home you are considering. That is exactly the conversation I walk Coulee Region buyers through every week — and with Granite Bank lending from our Onalaska office, I can help you decide between WHEDA, USDA, VA, and conventional construction financing before you pick a lot.
Reach me directly: call or text 608-397-4356, email jeff.thompson@granitebank.com, or visit my Granite Bank loan officer page at granitebank.com/loan-officer/jeffthompson. You can also follow my Facebook page at facebook.com/lacrossemortgagedude for regular updates on the Holmen, Onalaska, and La Crosse markets.
Ready to run your numbers?
I help Coulee Region buyers compare WHEDA, USDA, VA, and construction financing before they pick a lot. Reach out for a free, no-obligation look at your credit score, income, and the build you are considering.
Contact Jeff at Granite Bank1Do I need to be a true first-time buyer for WHEDA?
Most WHEDA programs count you as a first-time buyer if you have not owned a principal residence in the past three years — so a previous homeowner who sold more than three years ago can often still qualify for WHEDA assistance.
2Can WHEDA cover a new-construction build?
WHEDA does not fund new construction directly, but its zero-down first mortgages and down payment assistance apply to newly built homes you purchase, and WHEDA works through approved private lenders who can combine it with a construction-to-permanent loan.
3Can I build a new home with a USDA loan and no money down?
USDA Guaranteed loans finance up to 100% of an eligible home's appraised value, so qualified buyers generally need no down payment — but the property must sit in a USDA-eligible rural area and your household income must fall within the area's moderate-income limit.
4How do I know if my Wisconsin lot qualifies for USDA?
Check your address on USDA's Property Eligibility map first. If the lot qualifies, a USDA construction loan combines the guaranteed mortgage with construction financing into one loan, so you do not refinance once the build is complete.
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