City of Columbus 2006 American Dream DAP Initiative

Program Description

The City of Columbus American Dream Down Payment Initiative (ADDI) program assists low and moderate-income first time homebuyers with a deferred forgivable loan for the down payment necessary to acquire a home. The dollars are provided to the city through the HUD HOME Investment Partnerships Program.

Note: These funds are limited and available on a first-come, first-serve basis.The funds can also be combined with other city programs.

Financing Guidelines: To be eligible, applicants must be approved for a fixed rate loan. Loan amount assistance is (six) 6 percent of the purchase price with a maximum of $5,000, whichever is less, to be applied towards the required down payment, reasonable closing costs and/or a reduction in the principal mortgage amount.

The buyer must have $500 of their own saved funds exclusive of loans, credits or gift funds to contribute as equity.

Total housing expenses (PITI) must not exceed 35 percent of monthly income, and total debt service must not exceed 45 percent of monthly income.

The recipient must reside in the property for a period of not less than five (5) years. The loan is subject to recapture if, during the first five years of ownership /occupancy, the buyer moves or sells the property.

Eligible Properties: The property must be located within the City of Columbus corporate limits and within the Columbus Public School District. The property can be a new or existing single family or condo and it must serve as the applicant's primary residence. It also must be decent, safe and sanitary place to live.

Eligible Applicants: Any family/household that has not owned a home for three years and whose income is at or below eighty percent (80) of the area median income adjusted for household size as determined by HUD. A minimum of six months residency in the State of Ohio is required and Columbus City employees of the department of development are ineligible.

Household Assets: The households with a maximum of $5,000 in cash or cash equivalent amounts are eligible for assistance (excluding 401k and pension funds). Combined sources for down payment are permitted; i.e., seller seconds, gift funds, etc.

Maximum Income Limits

1 person            36050.00          5 persons          55600.00
2 persons          41200.00          6 persons          59750.00
3 persons          46350.00          7 persons          63850.00
4 persons          51500.00          8 persons          68000.00

Counseling: Home ownership counseling is required and a certificate of completion must be submitted.

Contact: Derrick Pryor (614) 645-6211