Dream Downpayment Initiative
- Purpose of Loan – Downpayment and closing costs.
- Amount up to 6% of the purchase price not to exceed
- To Qualify:
a First Time Homebuyer.
Household Income Limits based on the county where the property is located
and the number living in the home.
- Homebuyer counseling class (8 hours) is required prior
- “Soft” second mortgage – no monthly payment on second
- ADDI loan is “forgivable” over a five year period.
- No cash back to borrowers at closing when using ADDI
2014 county income limits for the ADDI Program
Homebuyer Counseling Agencies
Participating Lender List
♦ The goals of the ADDI funds
are as follows:
- Increase the overall homeownership
- Create greater opportunity for
homeownership among lower income and minorities
- Revitalize and stabilize
♦ADFA will make available ADDI funds for downpayment and closing cost
assistance toward the purchase of single-family housing (i.e., 1-4 family
residence, condominium unit, or combination of manufactured housing and lot)
by low-income families (80% of area median income or less) who are
♦Under ADDI, a first-time
homebuyer is an individual and his or her spouse who have not owned a home
during the three-year period prior to purchase of a home. In addition, the
unit must meet all applicable State and local building codes and
HUD-prescribed physical inspections procedures (Uniform Physical Condition
Standards) pursuant to 24 CFR 5.705 in the absence of local codes. The
purchase price cannot exceed the 95% of area median purchase price of
existing housing and/or new constructed housing in the area. ADFA will
provide the ADDI funds in the form of a forgivable loan (soft second
mortgage) in an amount necessary to close the transaction adhering to HOME
Program subsidy layering/underwriting guidelines.
♦The ADDI amount may not exceed
six percent (6%) or $10,000, whichever is less based upon the subsidy
layering/underwriting review, of the purchase price for downpayment and
closing costs assistance to eligible homebuyers. The minimum amount of ADDI
assistance is $1,000. The borrower may not receive any cash back on ADDI
loans. ADFA will not provide HOME funds for rehabilitation costs associated
with the ADDI loan. All repairs must be completed on the structure prior to
the approval of ADDI funds. ADFA will inspect all construction work
completed as part of the ADDI loan.
♦The assistance will be forgiven
in equal annual installments over the period of affordability (5 years). The
homebuyer must maintain the house as their principal residence for the full
affordability period (5 years). The homebuyer will be required to complete a
homebuyer education course through an ADFA approved homebuyer counselor. If
the property is sold during the affordability period, ADFA will recapture
the amount of ADDI/HOME funds that have not been forgiven. The homebuyer
will also be required to execute a Promissory Note, Second Mortgage for the
amount of assistance and subsidy agreement provided in accordance with
established HOME Program affordability periods.
Our Single Family Staff is listed below,
please do not hesitate to call
with any questions may have.
Dean Norman 501-682-5935
Barbara Whittaker 501-682-5930
Rachae Frye 501-682-5933
Denise Wells 501-682-5466
Single Family Housing Manager