American Dream Down Payment Initiative
Homeownership can be a pathway to housing stability and generational wealth-building for many, but rates of homeownership remain lower among lower- to middle-income populations. ADDI addresses one of the biggest hurdles to homeownership: the upfront cash needed for a downpayment. This ultimately helps make homeownership more accessible while increasing the tax base of the City of Cincinnati.
Overview
Applicants must first be pre-approved for a mortgage loan before applying to the ADDI program. Once an applicant is identified as eligible, the Department of Opportunity and Resident Services (DORS) issues a “Conditional Approval” letter with an amount of $10,000, $12,000, or $14,000, based on household income.
Applicants then submit a fully executed contract to purchase, which DORS uses to initiate a housing code inspection through the Buildings & Inspections Department (“B&I”). Upon a successful inspection and compliance with all provisions of the program, DORS works with the applicant to execute an agreement with the City for the down payment assistance funds, and close on the home. Funds are awarded as a five-year forgivable loan that is subject to a subordinate mortgage. The loan is partially forgiven each year of a five-year residency requirement that is met.