The American Dream Downpayment Initiative (ADDI) was signed into law in 2003. ADDI aims to increase the homeownership rate, especially among lower income and minority households, and to revitalize and stabilize communities. ADDI will help first-time homebuyers with the biggest hurdle to homeownership: downpayment and closing costs. The program was created to assist low-income first-time homebuyers in purchasing single-family homes by providing funds for downpayment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase.



ADDI will provide downpayment, closing costs, and rehabilitation assistance to eligible individuals. The amount of ADDI assistance provided may not exceed $10,000 or six percent of the purchase price of the home, whichever is greater. The rehabilitation must be completed within one year of the home purchase. Rehabilitation may include, but is not limited to, the reduction of lead paint hazards and the remediation of other home health hazards.



To be eligible for ADDI assistance, individuals must be first-time homebuyers interested in purchasing single family housing. A first-time homebuyer is defined as an individual and his or her spouse who have not owned a home during the three-year period prior to the purchase of a home with ADDI assistance. ADDI funds may be used to purchase one- to four- family housing, condominium unit, cooperative unit, or manufactured housing. Additionally, individuals who qualify for ADDI assistance must have incomes not exceeding 80% of area median income.



For more information, visit HUD: American Dream Downpayment Initiative

If you don't qualify for the government's American Dream Downpayment Initiative, there are private, nonprofit organizations that may help you buy a house with no money down. Most do not have income limits and do not limit the program only to first-time buyers. Downpayment assistance grants typically range from 2% to 7%.



The funds provided by these organizations can be used as a downpayment or to pay closing costs, and because the grant cost is carried by the seller, the buyer receives the money with no further obligation.



There are some limitations (for instance, you must typically use an FHA loan), but if you have been looking for a way to buy a house and the only thing stopping you is the downpayment, these assistance programs may be the key to buying a house with no money down.



Check these links for more information.

Nehemiah Program



AmeriDream



RealtyAmerica



Partners in Charity



Homes for All Program