Downpayment Assistance Programs

The initial costs of purchasing a home can be overwhelming. Down Payment Assistance Programs ease the burden to eligible applicants by providing assistance with the initial down payment, closing costs and required rehabilitation costs.

One such program is the American Dream Down Payment Initiative (ADDI).

It is a HUD program that provides grants to low income and minority individuals and families who are first time home buyers. The defintion of first time homebuyer according to HUD is defined as an individual or his or her spouse who have not owned a home prior to the ADDI funding for 3 years.\

American Dream Down Payment Initiative (ADDI)

The American Dream Downpayment Initiative or ADDI is a federal program that was signed into law in 2003. The goal of this program is to help low-income and minority individuals and families own homes by alleviating the financial burden of closing costs, down payments and costly but necessary home repairs and to help promote revitalization and stability within communities.

Assistance: Grant assistance is provided to eligible applicants by ADDI for downpayment, closing costs and rehabilitation to the home. The amount is not to exceed 6% of the total purchase price or $10,000 dollars whichever is greater.

Eligibility: To be eligible for this program, you must be a first-time homebuyer. A first time homebuyer according to HUD is a person or their spouse who has not owned a home in the past 3 years. Your income must not exceed more than 80% of the median income in your area and the funds received from ADDI must be used to purchase either a 1-4 family dwelling, condominium unit, cooperative dwelling or manufactured housing.

Application: To apply for this program, you need to check if your local HOME administering agency received ADDI funding. If not, then you may be eligible for this program through your state. For a list of HOME program contacts or for more information or assistance contact:

Community Connections

P.O. Box 7189, Gaithersburg MD 20898-7189

Telephone: 1-800-998-9999

Federal Relay Service: 1-800-877-8339

Fax: 1-301-519-5027