DOWNPAYMENT ASSISTANCE FOR FIRST TIME HOME BUYERS

This is a notification that Cook County is accepting qualified applications to the ADDI Program for first-time home buyers. Funding for the program is limited and will be awarded until the funds are depleted. Please note that the program guidelines (below) are subject to change.

WHAT IS THE PROGRAM?

The Cook County American Dream Down Payment Initiative (ADDI) is an interest-free five-year forgivable loan, secured by a second silent lien, given to income-qualified first-time homebuyers to meet down payment and closing costs for the purchase of a house in participating suburban areas of Cook County, Illinois.

DO YOU QUALIFY?

(1) The homebuyer/applicant should be a first-time home buyer or the applicant and his/her spouse must not have owned a home during the three year period prior to purchasing a home with the American Dream Down Payment Initiative (ADDI) assistance.

(2) The applicant must have attended and completed a housing counseling course from a HUD-approved service agency. You can check the HUD website link for HUD-approved agencies who may offer the course. 
 
(3) The applicant's income must be 80% or less of the median income for the area, adjusted for family size:  Income Limits (effective March 2009)

Number of Household Members -- Total Annual Household Income Limit
1 -- $ 42,200               5 -- $ 65,100
2 -- $ 48,250               6 -- $ 69,950
3 -- $ 55,250               7 -- $ 74,750
4 -- $ 60,300               8 -- $ 79,600
 
HOW DOES THE PROGRAM WORK?

The Down Payment Assistance program awards a five-year forgivable second mortgage for down payment and closing costs. This loan is offered to conventional lenders, as well as to Fannie Mae, FHA and non-conforming conventional lenders.
 
WHAT ARE THE LOAN FEATURES?

1. Loan amount of 6% of the purchase price or $10,000 (whichever is greater), not to exceed $14,999.00.
2. Zero percent interest. No monthly payments. No fees.
3. Property must be an owner-occupied, single-family residence (single-family house, condominium or townhouse).
4. The house must be the homeowner's primary residence for five years.  After five years, the ADDI loan is forgiven.
5. Loan is due on sale or if owner moves out before the five year period expires.
6. The maximum appraised value of an ADDI-assisted property cannot exceed $275,200.
7. The home buyer CANNOT receive any cash back.

ADDI - American Dream Downpayment Iniative  -  ©2009 Lyn Sims - RealEstateConsumerInfo.com and RealEstateBuyMe.com