The American Dream Down Payment Initiative (ADDI)
American Dream Downpayment Initiative (“ADDI”) is a program that provides down payment assistance of up to $14,000 to lower- to middle-income first-time homebuyers buying a single-family property in Cincinnati. ADDI aims to make homeownership more attainable, revitalizing and stabilizing communities.
Homeownership can be a pathway to housing stability and generational wealth-building for many, but rates of homeownership remain lower among lower- to middle-income populations. ADDI addresses one of the biggest hurdles to homeownership: the upfront cash needed for a downpayment. This ultimately helps make homeownership more accessible while increasing the tax base of the City of Cincinnati. ADDI funds are awarded as a five-year non-interest-bearing deferred loan payment with a five-year residency requirement. All or a portion of the funds will be recaptured in the event a homeowner moves from the residence, sells, or transfers ownership during the five-year residency period.
Partners: United States Department of Housing & Urban Development (“HUD”)
Who: To be eligible for ADDI assistance, individuals must be first-time homebuyers interested in purchasing a home within the city of Cincinnati limits. ADDI funds may be used to purchase a single-family home, condominium unit, cooperative unit, or manufactured housing. Additionally, households that qualify for ADDI assistance must have incomes that do not exceed 80% of the area median income. ADDI funds may be used for the down payment in the amount of $10,000, $12,000, or $14,000 (determined by the applicant’s household AMI) toward a home. After a thorough review of the application, the city will determine the amount of assistance the household is eligible to receive.
How: Applicants must first be pre-approved for a mortgage loan before applying to the ADDI program. Once an applicant is identified as eligible, DCED issues a “Conditional Approval” letter with an amount of $10,000, 12,000, or $14,000, based on household income. Applicants then submit a fully executed contract to purchase, which DCED uses to initiate a housing code inspection through the Buildings & Inspections Department (“B&I”). Upon a successful inspection and compliance with all provisions of the program, DCED works with the applicant to execute an agreement with the City for the down payment assistance funds, and close on the home. Funds awarded are subject to a subordinate mortgage and forgiven upon 5 years of residency.
When: Applications are accepted on a rolling basis throughout the calendar year. Once pre-approved for the program, applicants have 90 days to submit a fully executed purchase contract.* Once a fully executed purchase contract is received, there is a 30–45-day timeline for ADDI funds to be made available for closing.
Documents & Helpful Links
Interested? Have questions? For more information, contact:
Note: While the application is a fillable document online, it must be printed, signed, and mailed through the U.S. Postal Service or brought in person to the DCED office located at 805 Central Avenue, Suite 700, Cincinnati, OH 45202