Program is out of funding for 2008
The American Dream Downpayment
Initiative Program (ADDI) is designed to provide financial help to
low-income, first-time homebuyers by providing down payment, closing cost,
and rehabilitation assistance on home purchases within the City and County
of Sacramento.
Program Features:
- deferred payment loan secured by a deed of trust
- assistance is calculated at six percent (6%) of the sales price up
to a maximum of $10,000
- 3% simple interest – principal and interest are deferred for the
loan term
- ten (10) year loan term, or is due upon sale or transfer of property
- refinances must be approved by the Agency subject to Agency
subordination policy
- loan is assumable by qualified purchasers, subject to Agency
approval
- loan is forgiven at maturity if homebuyer has occupied the home for
the ten year loan term
- funds may be used for down payment and closing costs; funds may also
be used for rehabilitation that is completed in conjunction with the
home purchase
Eligible Applicants:
Homebuyers who:
- are first-time homebuyers (have not owned a home within the
preceding three years, or meet the definition of a displaced homemaker
or a single parent)
- are able to qualify for a loan to purchase the home
- attend homebuyer training classes
- will live in the home being purchased
- are defined as low-income – households with income less than or
equal to eighty percent (80%) of the area median income adjusted for
household size. Current income limits are:
| 1-person
$39,750 |
| 2-person
$45,450 |
| 3-person
$51,100 |
| 4-person
$56,800 |
| 5-person
$61,350 |
| 6-person
$65,900 |
Eligible Properties:
Single family homes located within the City or County of Sacramento
whose appraised value does not exceed the HUD 203(b) mortgage limit for
the area, currently $362,790. This program is also available in Citrus
Heights, Elk Grove, Folsom, Isleton, Galt and Rancho Cordova.
- property must meet minimum housing quality standards
- properties that are tenant-occupied as of the date of the purchase
offer are not eligible for FY 2003 funds, but would be eligible under
FY 2004 funds
Application Procedure:
To apply for the program, please contact any of our
approved lenders. For additional information please call (916) 264-1500. |
