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American Dream Downpayment Initiative
(ADDI)

SUMMARY

  • Purpose of Loan – Downpayment and closing costs.
  • Amount up to 6% of the purchase price not to exceed $10,000.
  • To Qualify:
  1. Must be a First Time Homebuyer.

  2. Household Income Limits based on the county where the property is located and the number living in the home.

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The goals of the ADDI funds are as follows:

  • Increase the overall homeownership rate
  • Create greater opportunity for homeownership among lower income and minorities
  • Revitalize and stabilize communities

♦ADFA will make available ADDI funds for downpayment and closing cost assistance toward the purchase of single-family housing (i.e., 1-4 family residence, condominium unit, or combination of manufactured housing and lot) by low-income families (80% of area median income or less) who are first-time homebuyers.

Under ADDI, a first-time homebuyer is an individual and his or her spouse who have not owned a home during the three-year period prior to purchase of a home. In addition, the unit must meet all applicable State and local building codes and HUD-prescribed physical inspections procedures (Uniform Physical Condition Standards) pursuant to 24 CFR 5.705 in the absence of local codes. The purchase price cannot exceed the 95% of area median purchase price of existing housing and/or new constructed housing in the area. ADFA will provide the ADDI funds in the form of a forgivable loan (soft second mortgage) in an amount necessary to close the transaction adhering to HOME Program subsidy layering/underwriting guidelines.

The ADDI amount may not exceed six percent (6%) or $10,000, whichever is less based upon the subsidy layering/underwriting review, of the purchase price for downpayment and closing costs assistance to eligible homebuyers. The minimum amount of ADDI assistance is $1,000. The borrower may not receive any cash back on ADDI loans. ADFA will not provide HOME funds for rehabilitation costs associated with the ADDI loan. All repairs must be completed on the structure prior to the approval of ADDI funds. ADFA will inspect all construction work completed as part of the ADDI loan.

The assistance will be forgiven in equal annual installments over the period of affordability (5 years). The homebuyer must maintain the house as their principal residence for the full affordability period (5 years). The homebuyer will be required to complete a homebuyer education course through an ADFA approved homebuyer counselor. If the property is sold during the affordability period, ADFA will recapture the amount of ADDI/HOME funds that have not been forgiven. The homebuyer will also be required to execute a Promissory Note, Second Mortgage for the amount of assistance and subsidy agreement provided in accordance with established HOME Program affordability periods.

Our Single Family Staff is listed below, please do not hesitate to call with any questions may have.

Dean Norman 501-682-5935
dean.norman@adfa.arkansas.gov

Barbara Whittaker 501-682-5930
barbara.whittaker@adfa.arkansas.gov

Rachae Frye 501-682-5933
rachae.frye@adfa.arkansas.gov 

Denise Wells 501-682-5466
denise.wells@adfa.arkansas.gov


Murray Harding,
Single Family Housing Manager

 501-682-5974
 murray.harding@adfa.arkansas.gov
 
 

 

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