Harford County ADDI Program
American Dream Downpayment Initiative Program

THIS PROGRAM IS CURRENTLY CLOSED DUE TO LACK OF FUNDING.

The American Dream Downpayment Initiative Program (ADDI) aims to increase the homeownership rate, especially among low income and minority households, and to revitalize and stabilize communities. ADDI may assist first-time homebuyers in purchasing homes by providing funds for downpayment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase. The program is administered by the Harford County Housing Agency. Homebuyers' workshops, financial literacy and individual counseling are offered to potential homeowners. The amount of ADDI assistance provided may not exceed $5,000 or 6% of the purchase price of the home, whichever is greater, to families whose income is at or below 80% of area median, adjusted for household size.

BUYER ELIGIBILITY

1. Completes homebuyer education curriculum: Workshop(s) and counseling session(s) with a Harford County designated HUD certified Counseling Agency (Home Partnership, Inc., or Harford County Housing Agency [HCHA]) BEFORE SIGNING A REAL ESTATE CONTRACT.
2. Meets income eligibility: 80% of area median, adjusted for household size.
3. First-time homebuyer (cannot have previously owned a dwelling within the last 3 years). Exceptions granted for divorce, death of spouse or owner of substandard housing.
4. Qualifiers for a fixed-rate mortgage with a participating lender. (Please see referral list.)
5. Post purchase liquid assets cannot exceed 20% of gross annual household income.
6. Buyer's minimum cash contribution: Zero or an amount greater when required by the first mortgage lender.
7. The borrower will be required to complete a financial literacy course.

PROPERTY CRITERIA

1. Existing dwelling or new construction that is owner occupied, occupied by buyer, or vacant at time real estate contract is signed.
2. Dwelling types: Single family dwellings (including one- to four-family housing in which one would be owner occupied or condominium unit).
3. Home must pass an inspection for Federal Housing Quality Standards (HQS) using a designated County inspection firm which certifies that the dwelling is free from hazardous defects and meets basic standards for livability. All noted deficiencies must be corrected and reinspected prior to ADDI Loan approval unless borrower is applying for ADDI funds for the purpose of rehabilitation. Inspection fee can be financed in ADDI loan.
4. Sales price cannot exceed 95% of median purchase price for area (203B limit).
5. Must be principal residence.

ADDI LOAN TERMS

1. ADDI Loan Amount: Minimum - $1,000. Maximum - $5,000 or 6% of the purchase price of the home, whichever is greater.
2. ADDI loans not to exceed 1% of the cost of the home may be utilized for rehabilitation purposes to bring home up to Housing Quality Standards (upon funding availability). ADDI funds to be used for rehabilitation purposes will be escrowed. However, all HQS repairs will be completed by a licensed contractor no more than 60 days from date of settlement.
3. The interest rate on the loan is 0%.
4. Loan principal and accrued interest are repayable upon the earlier to occur of sale (to include 10% of net proceeds of sale), transfer, default on primary loan, or discontinuance of borrower occupancy.
5. In the event that buyer maintains property as primary residence, loan will be forgiven in full after five years.

   Note: Exceptions may be granted for nonprofit developers.

Harford County Housing Agency
15 South Main Street - Suite 106, Bel Air, Maryland 21014
410-638-3045 / FAX:  410-879-7148
E-mail:  housing@harfordcountymd.gov