The American Dream Down Payment Initiative

The American Dream Down Payment Initiative (ADDI) program uses grant money provided by the Federal government to provide down payment assistance, closing cost, and rehabilitation assistance to individuals considered to be first time home buyers. According to the ADDI rules, a first-time home buyer is defined as “an individual and his or her spouse who have not owned a home during the three-year period prior to the purchase of a home with ADDI assistance.”

To be eligible for ADDI assistance, you must be interested in purchasing single-family housing. The funds you receive can be used to purchase one-to-four family housing, a condominium unit, a cooperative unit, or manufactured housing. The amount you receive can be as high as $10,000 or six percent of the purchase price of the home, whichever is greater. In order to qualify your income cannot exceed 80% of the area median income.

If you decide that you are interested in the American Dream Down Payment Initiative program, the first thing you should do is check this formula allocation page to determine whether your local HOME administering agency received ADDI funding.

If they did not receive ADDI funding, it may still be available through your state government because every state receives ADDI funds. The contacts for each state are available in the HOME administering agency list.

For more information you can also visit the ADDI program brochure on the Department of Housing and Urban Development (HUD) website.