Portland Metro/Tigard Real Estate News

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Friday, May 18, 2007

American Dream Downpayment Initiative

What is ADDI? ADDI is a specialized loan to help first time home buyers in Washington County. It has a 0% interest rate which is huge but it doesn't stop there. There are also no payments required until you sell your home, the title is transfered, there is a default or the home is no longer your principal residence. No payments! So as long as you make money off your home sale you will never have to make a payment. Now, this loan is not for the entire purchase price of the home, it is intended for the downpayment and/or closing costs of the home sale. Also, the borrower is not the only one who has to qualify, the property must also qualify.

Borrower Eligibility:

  • Be First-Time Homebuyers: Defined as a household in which no member has owned a home as their principal residence within the past three years. An exception is made for displaced homemakers and single parents.
  • Meet Income Limits: Have combined gross annual income that does not exceed the HUD Low Income Limits adjusted for household size. (see income limits table below)
  • Homebuyer Education Requirement: Complete an approved homebuyer education course.
  • Minimum Downpayment: Homebuyer must contribute a minimum of $500.00 towards the purchase of the property.
  • Owner Occupancy Requirement: Homeowner must occupy the property as their principal residence for the life of the loan.
  • Financing: Buyer must qualify for and obtain loan commitment for a first mortgage using a conventional loan. No private loans and no all cash transactions are allowed.

Income Limits for ADDI eligibility:

Persons in Household/Household Income

  1. /$38,000
  2. /$43,450
  3. /$48,900
  4. /$54,300
  5. /$58,650
  6. /$63,000

Property Eligibility:

  • Homes must be located in Washington County
  • Homes can be single family home, condominium, or a manufactured home on a permanent foundation.
  • The home sales price can not exceed 80% of FHA mortgage limits for Portland Metro Area. $194,560 as of February 2005.
  • The property must meet HUD's housing quality standards and the home must not have lead paint hazards.



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