Somerset County American Dream Downpayment Initiative (ADDI)

What is Somerset County American Dream Downpayment Initiative (ADDI)?

Somerset County American Dream Downpayment Initiative (ADDI) is a forgivable loan for homebuyers in Somerset County, New Jersey, administered by Central Jersey Housing Resource Center (CJHRC) with Somerset County Community Development.

• Part of the Somerset County HOME Investment Partnership Program, ADDI helps lower-income first-time homebuyers with closing costs for homes in Somerset County. Administered by CJHRC (HUD-approved counseling agency) with applications to the Somerset County Community Development Office.
• Forgivable loan up to $10,000 for down payment/closing costs.
• Interest-free.
• 5-year deed restriction, then forgiven.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from HUD HOME Investment Partnerships Program (Somerset County HOME / ADDI).

How much assistance does it provide?

Somerset County American Dream Downpayment Initiative (ADDI) offers up to $10,000 in assistance.

• Amounts are the program's published maximums, not an offer — Central Jersey Housing Resource Center (CJHRC) with Somerset County Community Development determines any individual award.

Do you have to pay it back?

Somerset County American Dream Downpayment Initiative (ADDI) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Full ADDI loan (not prorated) repaid if sold or no longer primary residence before the 5-year restriction expires.
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Somerset County American Dream Downpayment Initiative (ADDI) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Somerset County American Dream Downpayment Initiative (ADDI) limits household income to 80% of the area median income, which varies by county and household size.

• Household income <=80% AMI adjusted for household size; income from all members over 18 counted. NOTE: published CJHRC ADDI dollar limits date to an older (2015) flyer and should be re-verified with Somerset County CD / CJHRC for the current program year.
• The limit applies to total household income, not only the borrower&rsquo;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?

Somerset County American Dream Downpayment Initiative (ADDI) caps the purchase price as follows: Max property value set by Somerset County; verify current limit.

• Eligible property types include Single Family, Condo, Co-op, and Manufactured.
• New construction is not eligible.
• Manufactured homes are eligible.

Where does it apply?

Somerset County American Dream Downpayment Initiative (ADDI) is a federal program, so it is not limited to New Jersey.

How do you apply?

Applications for Somerset County American Dream Downpayment Initiative (ADDI) go through Central Jersey Housing Resource Center (CJHRC) with Somerset County Community Development, 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 CJHRC homebuyer education and at least one one-on-one housing counseling session, required before signing the contract of sale..

2. 2

   Contact Central Jersey Housing Resource Center (CJHRC) with Somerset County Community Development to reserve funds

   Funds are reserved with the provider 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.