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

Closing

The Community Development Office will be responsible for closing the City of Madison American Dream Downpayment loan and will expect the loan closing to be done in conjunction with closing the first mortgage loan. Any changes to the first mortgage loan amount after the initial loan approval requires written approval from the Community Development Office. The closing time must be scheduled in consultation with the Community Development staff person who will attend the closing.

An acceptable preliminary Settlement Statement (HUD-1) and a copy of the hazard insurance binder which shows the City as a second mortgagee must be submitted to the Community Development Office five full business days prior to loan closing. Any changes to the preliminary settlement statement must also be submitted to the Community Development Office.

The homebuyer must provide proof of Title Insurance for the full value of the City’s loan at least 5 business days before the closing. The homebuyer shall provide for the recording of the City’s mortgage at closing.