ADDI Home
Frequently Asked Questions

Eligibility
Requirements
Property Eligibility
Homebuyer Eligibility
Assistance Available
Required Downpayment
Combined Qualifying Ratio
Loan-To-Value
Home Inspection
Lead-Based Paint
Taxes and Insurance
Stacking of Funds
Eligible Closing Costs
Repayment
Subordination
Non-Discrimination
Privacy
Appeals
 
Loan
Processing
Application Package
Processing
Closing
Loan Cancellation
 
Lender
Resources
Lender FAQ
Underwriting Guidelines
Lender Checklist
ADDI vs HOME-BUY
Downloadable Forms

Homebuyer Eligibility

En Español

The homebuyer must meet the following requirements:

• Have a household gross annual income that does not exceed 80% of the area median income limits as published annually by the Federal Department of Housing and Urban Development (HUD).

Gross annual income includes income from the following sources: wages, overtime, commissions, bonuses, profit sharing, tips, business income, child support, interest and dividends from funds retained after the closing, and other types of periodic payments which are anticipated for the 12 month period commencing with the date of application. Gross annual income is based on the HUD 24 CFR Part 5 definition of annual income.

• Be a first-time homebuyer, a displaced homemaker or a single parent.
    
  • A first-time homebuyer is defined by HUD as any individual listed on the deed, mortgage and note who has not owned a home during the three-year period prior to purchase of a home with Madison American Dream Downpayment Assistance. For married couples, if only one individual is listed on the deed, mortgage and note, HUD requires that both individuals qualify as first-time homebuyers as defined above.
     
  • A displaced homemaker is defined by HUD as an adult who has not worked full-time full-year in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family and is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment.
     
  • A single parent is defined by HUD as an individual who is unmarried or legally separated from a spouse and has one or more minor children for whom the individual has custody or joint custody, or is pregnant.
     
• Complete an approved first-time homebuyer education course or a homebuyer study guide. A training certificate must be submitted to the Community Development Office prior to receiving funding.
   
• Be an owner-occupant of the property and take occupancy within 60 days of acquisition of the property.
   
• Be a documented United States citizen or resident alien.
   
• Provide all financial data and other relevant information required to document the borrower’s eligibility for a loan and give written permission to obtain verification of such information from appropriate sources.
   
• Satisfy credit-granting criteria and qualify for a first mortgage that does not exceed the prevailing market rates.
   
• Does not own any other real estate.