American Dream Downpayment Initiative Program

Contact: Tracey Davis (TLDavis@Columbus.gov)
614-645-8530

2010 Program Guidelines

The City of Columbus established the American Dream Downpayment Initiative (ADDI) Program to assist low and moderate income households finance the acquisition of a first home in the City of Columbus. This program may be used in conjunction with the Housing Development Program. Applicant and property criteria for participation in this program are outlined below.

The ADDI program is a five year deferred forgivable loan. The buyer(s) must reside in the property for five years after closing (the date they sign the City's mortgage and restrictive covenant) or the funds must be repaid to the City. 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.

Eligibility

To be eligible, the applicant must be a first time* homebuyer, meet income guidelines, receive homebuyer education from a Housing Division Certified Agency, and purchase a single family home or condominium in the city of Columbus, Columbus Public 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 his or her 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 is required to be considered a first-time homebuyer. Columbus City employees working directly for the Department of Development are ineligible for loan assistance.

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 6 percent of the purchase price of the home, to a maximum loan of $5,000. All buyers must contribute $500 of their own funds toward the purchase of the house. This $500 may not be gifted or come from any other source other than the buyer themselves. Home inspection costs will be considered up to $250 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.

Application Process

The City of Columbus maintains a list of mortgage companies and banks that are certified to utilize the ADDI Program in conjunction with home mortgages.  In order for the application to be processed the lender must be on this list. Lenders not on the list are welcome to contact the Housing Division to become certified.

The City of Columbus recommends that the buyer must first find a home to purchase through a certified real estate agent and qualify for a mortgage loan. After the mortgage loan is approved, the lender should submit the ADDI application on the buyer's behalf. Approval generally takes four to six (4 to 6)  weeks from receipt of the completed application. After the lender and homebuyer receive the approval letter, for conventional loans only, closing may occur as early as 48 hours later. For FHA loans, the closing will take place approximately two (2) weeks after the commitment letter is sent to the homebuyer and the lender.

Homebuyer Education must be provided by a city certified homebuyer education entity which includes: counseling prior to the purchase of the property; assisting first-time homebuyers in identifying the most suitable and affordable properties; providing homebuyers with financial management assistance; assisting homebuyers in understanding mortgage transactions and home sales contracts; assisting homebuyers with eliminating any credit problems that may prevent them from purchasing property; and home maintenance training. 

A certificate of completion of the Homebuyer Education program must be submitted to the City. Click here for a list of Homebuyer Education Agencies. 

The City of Columbus maintains a list of mortgage companies and banks that are certified to utilize the ADDI Program in conjunction with home mortgages. In order for the application to be processed the lender must be on this list. Lenders not on the list are welcome to contact the Housing Division to become certified.

Click here to view a list of mortgage companies and banks.