American Dream Downpayment Program

What is American Dream Downpayment Program?

American Dream Downpayment Program is a forgivable loan for homebuyers in Middlesex County, New Jersey.

• ADDI/HOME-funded $10,000 forgivable second for first-time homebuyers in Middlesex County, NJ. 50-60% AMI targeting. Max purchase $304,000. 5-year affordability period.
• Up to $10,000 in down payment and closing cost assistance for first-time homebuyers purchasing in Middlesex County, NJ. Funded with HUD American Dream Downpayment Initiative (ADDI) funds plus HOME match. 0% interest deferred-payment forgivable second mortgage. 5-year HOME affordability period.
• lien fully forgiven at end of term. Targeted to low-income buyers per ADDI program rules. Income range $48,800-$92,050 reflects 50-60% AMI Middlesex/Edison HMFA. Max purchase $304,000.
• Funding comes from Federal HOME and Federal ADDI.

Do you have to pay it back?

American Dream Downpayment Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by 5-year HOME affordability period and lien forgiven at end of term. Prorated balance due on early sale, transfer, cash-out refi, or non-owner-occupancy.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

American Dream Downpayment Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

American Dream Downpayment Program limits household income to 60% of the area median income, which varies by county and household size.

• Household income at or below 50-60% AMI Middlesex/Edison HMFA per ADDI program targeting. Approximate range $48,800 (1-person) to $92,050 (8-person).
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

American Dream Downpayment Program caps the purchase price at $304,000.

• Eligible property types include Single-family detached, Townhome, Condominium, and 2-4 unit owner-occupied.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

American Dream Downpayment Program serves buyers purchasing in Middlesex County, New Jersey.

How do you apply?

Applications for American Dream Downpayment Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved housing counseling agencies (Puerto Rican Action Board, NeighborWorks, etc.)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application to Middlesex County Office of Housing & Community Development. First-come, first-served subject to HOME/ADDI funding cycle., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.