The American Dream Down Payment Initiative (ADDI)

What is The American Dream Down Payment Initiative (ADDI)?

The American Dream Down Payment Initiative (ADDI) is a deferred second loan for homebuyers in Cincinnati, Ohio.

• Cincinnati's flagship federal-HUD-funded down payment assistance program for first-time homebuyers. Up to $14,999 as a 0% interest, 5-year forgivable second mortgage. <=80% AMI, FTHB, owner-occupied within Cincinnati city limits.
• ADDI provides up to $14,999 in down payment and closing cost assistance to first-time homebuyers purchasing within Cincinnati city limits. Funds are structured as a 0% interest, deferred-payment second mortgage forgiven 20% per year over 5 years if owner remains in the home as primary residence. No monthly payments. Federal HUD HOME ADDI funding pass-through to City of Cincinnati Department of Community and Economic Development.
• Funding comes from Federal, HUD, HOME, ADDI, and CDBG.

Do you have to pay it back?

The American Dream Down Payment Initiative (ADDI) 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, transfers title, or vacates property before 5-year affordability period ends and fully forgiven after 5 years of owner-occupancy.
• 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?

The American Dream Down Payment 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?

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

• Household income at or below 80% Cincinnati MSA AMI: ~$36,700 (1 person) to $110,700 (8 person) per current HUD HOME limits.
• The limit applies to total household income, not only the borrower&rsquo;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?

The American Dream Down Payment Initiative (ADDI) caps the purchase price at $345,000.

• Eligible property types include Single-family detached, condo, townhouse, 1-4 unit (owner-occupied).
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

The American Dream Down Payment Initiative (ADDI) 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?

The American Dream Down Payment Initiative (ADDI) serves buyers purchasing in Cincinnati, Ohio.

• The program targets specific areas: City of Cincinnati Neighborhood Revitalization Strategy Area (NRSA) census tracts may receive enhanced assistance.

How do you apply?

Applications for The American Dream Down Payment Initiative (ADDI) 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 including Working In Neighborhoods/Homebase Cincinnati, Cincinnati Better Housing League, and Urban League of Greater Southwestern Ohio. 8-hour pre-purchase homebuyer education required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application submitted by borrower/lender to City of Cincinnati DCED; first-come first-served subject to annual ADDI/HOME 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.