City of Columbus American Dream Down Payment Initiative Program
Did you know The City of Columbus has a down payment program called The American Dream Down Payment Initiative? It will pay up to $5000 in closing costs to include the down payment for a home!
The ADDI program offers a deferred, forgivable loan to be used for downpayment and closing costs. The buyer(s) must reside in the property for five years after closing or the funds must be repaid to the City from sale proceeds. The property is unable to be sold, rented, or transferred during these five years and must remain as the sole residence of the buyer(s). After the five years, the mortgage and restrictive covenant are released on the property and the loan is forgiven.
To be eligible, the applicant must be a first time* homebuyer, meet income guidelines, receive homebuyer education from a Housing Division HUD Certified Agency, and purchase a single family home or condominium in the City of Columbus, Columbus City School District. The funds for downpayment assistance are limited and will be available on a first come, first serve basis.
*A first-time homebuyer is defined as an individual and their spouse who have not owned a home during the three-year period (thirty-six months) prior to the purchase of a home with ADDI assistance. A minimum of six (6) months residency in the State of Ohio and a permanent resident of the United States are also required to be considered a first-time homebuyer.
Households whose income is at or below 80% of the Area Median Income (AMI) as defined by the U.S. Department of Housing and Urban Development (HUD), may qualify for up to six percent (6%) of the purchase price of the home, maximum loan of $5,000.
All buyers must contribute $500 of their own funds toward the purchase of the home. This $500 may not be gifted or come from any other source other than the buyer themselves. Appraisal and Home inspection costs will be considered up to $250 ($250.00 from appraisal and $250.00 from inspection) based on approved criteria. Buyer must fall within 35% House Debt/Income ratio and 45% Total debt/Income ratio based on City income and debt calculations in order to qualify!