Owning a home has long been considered the American Dream, but many people feel it is out of their reach, especially low-income families. But the U.S. Department of Housing and Urban Development has a program that helps low-income, first-time home buyers to be able to purchase their very own home.
The American Dream Downpayment Initiative
The American Dream Downpayment Initiative (ADDI) is not new; it was signed into law by the U.S. government in 2003. The law authorized up to $200 million annually to all 50 states. Although the funding was for 2004-2008, some states still have funding remaining to loan to qualified first-time home buyers.
How does the program work?
ADDI helps first-time home buyers with down payment and closing costs. This is the area of home buying that is the most difficult, especially for low-income families. The funding to qualified home buyers is limited to $10,000, or six percent of the purchase price on a single-family home. This represents a huge benefit for low-income families who may not be able to come up with the cash on their own.
Who qualifies for the program?
First-time home buyers include anyone who has not yet purchased a home, or someone who has not owned a home in three or more years. There are income limits for qualifying buyers. They must have incomes not exceeding 80 percent of the area median income. This will, of course, vary by state.
How do I apply for this program?
If you think you might qualify for such a program, you will find the contact for each state on the HUD website. You can then contact that office to see if their state program is funded.
For more information, visit http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/affordablehousing/programs/home/addi
