American Dream Downpayment Initiative Down Payment Loan Program Hawaii HomeOwnership Center American Dream Downpayment Initiative The American Dream Downpayment Initiative (ADDI) funded under HUD’s HOME Investment Partnership Program (HOME) is to provide assistance towards the purchase of single family housing by low-income families who are first-time homebuyers. Eligibility Low-income household whose annual income does not exceed 80% of the median household income for Oahu, with adjustment for family size. First-time homebuyers who have not owned a residential property within three years of application. “First time homebuyer” includes an individual who is a “displaced homemaker” or “single parent." General Terms and Conditions ADDI grant funds will be awarded to qualified homebuyers on a first-come/first-serve basis. The maximum ADDI grant assistance will be $5,000. All ADDI grants will have a five-year recapture requirement. Repayment of the outstanding grant will be reduced 1/5 per year. If the property is sold during the first five years of the Grantee’s ownership to a subsequent buyer who meets the ADDI qualifications, no grant funds need be repaid. ADDI grants will awarded only after approval of the homebuyer’s mortgage application. Grant applicants will be asked to have the mortgage lender provide the City with copies of documents from the mortgage application packet. Applicant must complete a First-Time Homebuyer Education training program. July, 2005 Down Payment Loan Program The City and County of Honolulu's Down Payment Loan Program is part of the City's expanded effort to promote homeownership and create a strong community. This loan program provides low interest loans to assist low- and moderate-income, first-time homebuyers meet upfront down payment and closing costs required to qualify for a mortgage loan. Frequently Asked Questions Who can apply for a down payment loan? First-time homebuyers or those who have not owned residential property on Oahu within the last three years whose household income is within the income schedule listed below are eligible. # in household: 1 $39,950 2 $45,650 3 $51,350 4 $57,050 5 $61,600 6 $66,200 7 $70,750 8 $75,300 How much down payment assistance can I apply for? The maximum amount for the down payment loan is $25,000. The maximum grant for the American Dream Downpayment Initiative is $3,000. Subject to availability of funds, qualified homebuyers may receive both downpayment loan and American Dream Downpayment Initiative (ADDI) grant from the City. Certain restrictions apply. What is the interest rate? Interest rate for the down payment loan will be zero interest (0.0%). What are the loan terms? The down payment loan term is 15 years. The American Dream Downpayment Initiative grant requires that the homeowner remain owner occupant of the property for five years. Is there any collateral or security? The loan will be secured by a mortgage on the property. The ADDI grant is subject to a five-year recapture period. How do I apply for the down payment assistance? Step 1. When applying for a mortgage loan to purchase a property, inform the mortgage lender that you will also be applying for down payment assistance through the City and County of Honolulu. Step 2. Mortgage lender will provide the City with copies of documents from your mortgage application and request on your behalf the down payment assistance amount necessary to qualify for a mortgage loan. Step 3. Upon the City's approval of your down payment assistance request, you will be required to provide the City and County of Honolulu with an ALTA Title Policy insuring the City's down payment loan. Step 4. Completion and certification of First Time Home Buyer Education is required. To obtain information on the City's down payment loan program and the American Dream Downpayment Inititative grant, call or visit the City and County of Honolulu branches shown below: Additional information is available at the City's website listed below. City & County of Honolulu Loan Branches: Downtown Branch 51 Merchant Street Honolulu, Hawaii 96813 Phone: (808) 527-5907 Kapolei Branch 1000 Uluohia Street #204 Kapolei, Hawaii 96707 Phone: (808) 692-5809 Website: www.honolulu.gov/dcs/housingloans.htm Updated: August, 2006 Hawaii HomeOwnership Center The mission of the Hawaii HomeOwnership Center is to provide education, information and support to create successful first-time homeowners in Hawaii. By addressing barriers and increasing rates of home ownership, the HomeOwnership Center aims to build stronger families and communities throughout the state of Hawaii. Their vision is to substantially increase the number of successful homeowners by reaching out to low- and moderate-income families who never believed they would become homeowners. Why should you come to the Hawaii HomeOwnership Center? The Center provides you with all the information and services you need to become a homeowner—all in one place. You will attend a free, one-hour class to get information on what it takes to become a homeowner. The orientation class will give you an introduction to home ownership, assess your readiness to buy a home, and describe the home-buying process. A home could be a single-family, multi-family, condominium or townhouse unit. What services are offered by the Center? Home buyer education One-on-one counseling Financial literacy training Referrals to professional services (REALTORS®, lenders, insurance) Post-purchase counseling How much will these services cost? The one-hour home buyer orientation class is free to all interested home buyers. If you are interested in taking the next step, you will be asked to fill out an application form and pay $20 for a credit report. There is a $100 fee to attend an 8-hour home buyer education class. $50 will be refunded to you when you become a homeowner! All one-on-one counseling is included at no additional charge. How can you sign up for the free home buyer education orientation? To enroll, call (808) 523-9500 today. Classes are held weekly at convenient times and locations. Visit www.hihomeownership.org for the latest class schedule. © 1995-2006 Honolulu Board of REALTORS®.All rights reserved. Information herein deemed reliable but not guaranteed.