American Dream Downpayment Initiative

What is American Dream Downpayment Initiative?

American Dream Downpayment Initiative is a deferred second loan for homebuyers in Columbus, Ohio.

• Columbus's federal HUD ADDI-funded down payment assistance program for first-time homebuyers. Up to $5,000 forgivable over 5 years.
• Up to $5,000 in down payment and closing cost assistance for first-time homebuyers purchasing within City of Columbus limits. Structured as a 0% interest, 5-year forgivable second mortgage (20% forgiven per year of owner-occupancy). HUD ADDI/HOME federal pass-through administered by City of Columbus Department of Development.
• Funding comes from Federal, HUD, HOME, and ADDI.

Do you have to pay it back?

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

• Repayment is triggered by Pro rata recapture if owner sells, refinances, or vacates within 5-year affordability period.
• The assistance is recorded in 2nd Lien 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 Initiative 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 Initiative limits household income to 120% of the area median income, which varies by county and household size.

• Income at or below 80% Columbus MSA AMI per HUD HOME limits ($86,880-$163,680 by household size for tiered offer).
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• 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 Initiative caps the purchase price as follows: Per HUD HOME 95% area median purchase price for Franklin County.

• Eligible property types include Single-family detached, condo, townhouse, 1-2 unit owner-occupied.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

American Dream Downpayment Initiative names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

American Dream Downpayment Initiative serves buyers purchasing in Columbus, Ohio.

• The program targets specific areas: Columbus Neighborhood Revitalization Strategy Areas may receive enhanced assistance.

How do you apply?

Applications for American Dream Downpayment Initiative 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 in Columbus including Homeport, Affordable Housing Trust for Columbus and Franklin County, and other HUD-certified counselors. 8-hour pre-purchase education required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Submit application to City of Columbus Department of Development; first-come first-served per annual allocation, 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.