Downpayment Assistance Program for First Time Homebuyers

The American Dream Downpayment Initiative (ADDI)

The purpose of the program is to assist low- and moderate-income, first-time homebuyers purchase a home. ADDI funds may be used to help with down payment and closing costs or rehabilitation with a minimum loan of $1,000.00 up to $10,000.00 or 6 percent of the purchase price. Below is a brief description of loan requirements. Additional information and loan pre-applications can be obtained by email or by calling 410-313-6320.

The Property

• Must be Located in Howard County.
• Must be a single-family residence, condominium unit, or manufactured housing and lot.
• The purchase price of the property may not exceed 95 percent of the median purchase price of housing in the area
• Must meet County housing quality standards.

The Applicant

• Must live or work in Howard County.
• Must be a low- and moderate-income resident. Household income cannot exceed 80 percent of the median for the area by family size. To view the current Howard County income limits – Open the PDF file Howard County is under the Baltimore, MD PMSA.
• Must be a first time homebuyer. – An individual and his or her spouse who have not owned a home for at least three years. The term also includes displaced homemakers and single parents.
• Must purchase property and maintain it as his/her principal residence.
• Must obtain a certificate of attendance from the first-time homeowner-counseling program offered by the Department of Housing.

The Loan Terms

• The minimum loan is $1,000 and the maximum loan is $10,000.
• Loans can be deferred or amortized with monthly payments depending on the applicant’s ability to pay.
• The purchaser is required to repay the full amount of the loan when the property is resold.
• The loans are governed by a promissory note and secured by a deed of trust.

This program is funded by a grant from the U.S. Department of Housing and Urban Development, The American Dream Downpayment Initiative.