Question:

How did American Dream Downpayment Act improved down payment assistance?

Answer:

The American Dream Downpayment Assistance Act provided $200 million for down payment assistance for the years 2004 through 2007. It is available in all states and to local qualifying jurisdictions.

The American Dream Downpayment Act was enacted under the American Dream Downpayment Initiative (ADDI) with the purpose to provide down payment, closing cost and rehabilitation assistance to first-time homebuyers with low income.

Who is eligible under the American Dream Downpayment Assistance Act?

Homebuyers who didn't have a home in their name during the last three years and whose household income did not exceed 80% of the median income for their area qualified to receive down payment assistance of up to 6% of the loan amount or $10,000, whichever was bigger.

American Dream Downpayment Act funds can be used towards the down payment and closing costs of a purchase, or purchase with rehabilitation of qualifying homes. The ADDI program has been extended through 2012.

Qualifying Homes

Single to four units, condominiums and mobile homes do qualify under the American Dream Downpayment Act.

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