The American Dream Downpayment Initiative (ADDI) is a federally funded downpayment assistance program available through the City of Santa Rosa's Department of Economic Development and Housing. The ADDI program offers up to $10,000 to eligible first time homebuyers for downpayment assistance on a property located within the Santa Rosa City limits. The assistance is in the form of a 15 year deferred loan with a 3% interest rate.
Who is eligible?
First time homebuyers, including those who have not owned a home in the last three years. The HUD definition of a first time homebuyer also includes individuals who are displaced homemakers or single parents. The homebuyer's total household income must fall below the following amounts:
|
Household Size |
Gross Annual Income Limits* |
|
1 |
$44,950 |
|
2 |
$51,400 |
|
3 |
$57,800 |
|
4 |
$64,200 |
|
5 |
$69,350 |
|
6 |
$74,500 |
|
|
*Updated 07/05/2011. Subject to change annually. |
Where can I purchase a home?
The unit must be located within the Santa Rosa City limits. The County of Sonoma may have a similar program that applies to the County and smaller cities.
What type of house can I buy?
The home must be one of the following unit types: single family home, condominium unit, cooperative unit or manufactured home (must be located on land that is owned by the manufactured unit owner or be leased for a period of at least 15 years).
What is the maximum purchase price?
The current maximum purchase price is $362,790. The purchase price is set by HUD mortgage limits and is subject to change.
What is the loan amount?
The minimum loan amount is $1,000.
The maximum loan amount is $10,000.
Does the use of ADDI funds place any restrictions on the property?
Yes, the use of ADDI funds will require owner-occupancy. Owner-occupancy is a minimum of 10 years, or until the loan is outstanding, whichever first occurs.
What if I want to refinance?
Refinancing of the first mortgage is permitted, if you choose to refinance solely for a lower interest rate or to change the term of the loan with no negative amortization. If you refinance for a larger first mortgage amount, the ADDI loan plus interest will need to be repaid.
How do I apply?
Application materials are available in the Economic Development and Housing office, can be received by mail upon request by calling 543-3300, or may be downloaded here.
What are the financial requirements?
The following items must be found to meet the City's lending standards in order for the application to be processed.
- Acceptable debt to income ratios
- Acceptable credit evaluations
- Acceptable title report for the property to be purchased