The American Dream Downpayment Assistance Initiative authorizes up to $200 million annually for downpayment assistance. You may be eligible for ADDI assistance if you are a first-time homebuyer with income not exceeding 80 percent of area median income. (A first-time homebuyer 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.) ADDI funds may be used to purchase one- to four-family housing, a condominium unit, cooperative unit, or manufactured housing. ADDI provides funds to all states and to local participating jurisdictions that have a population of at least 150,000.
Zero Downpayment Act eliminates the downpayment requirement for families and individuals who buy homes with Federal Housing Authority (FHA) insured mortgages. You may qualify for the Zero Downpayment Act if you are a first-time homebuyer without enough savings for a downpayment, but can easily afford monthly mortgage payments. (A first-time homebuyer is defined as an individual and his or her spouse who have not owned a home during the prior three-year period.) The zero down plan is different from assistance programs like the American Dream Downpayment Act: instead of granting a lump-sum award to qualified homeowners, FHA charges a modestly higher insurance premium to lenders on its zero-down loans.
State Bond programs are subsidized by federal funds allotted to each state, but each state requires that the home be owner-occupied as the borrower’s primary residence. You may qualify for a state bond program if you are a first-time buyer or have not owned a home in the past three years. State Bond loans can offer below-market interest rates, often .5 to .75 of a percentage point lower. Closing fees are generally lower. Requirements and availability of State Bond Loans change frequently, so please contact us to learn what’s available in your area.