The City of Madison
American Dream
Downpayment Initiative (ADDI)

Frequently Asked Questions
ADDI Brochure


Property Eligibility
Homebuyer Eligibility
Assistance Available
Required Downpayment
Combined Qualifying Ratio
Home Inspection
Lead-Based Paint
Taxes and Insurance
Stacking of Funds

Application Package
Loan Cancellation

Lender FAQ

Underwriting Guidelines
Lender Checklist
Subordination Policy
Downloadable Forms

Related Links
Home Buyers' Round Table of Dane County
Dane County Housing Authority
Fannie Mae Home Buying Guides
HUD Information for Homebuyers
Protect Your Family From Lead In Your Home
[brochure, PDF format]
Common Questions From First-Time Home Buyers

Other City of Madison Residential Loan Programs

Madison ADDI Home Page
CD Office Home Page
DPCED Home Page
City of Madison Home Page


City of Madison American Dream Downpayment Initiative

The City of Madison Community Development Office promotes and facilitates homeownership opportunities for lower income households. The Madison American Dream Downpayment Initiative (ADDI), funded by the Federal Department of Housing and Urban Development (HUD), is one method the Community Development Office uses to achieve this goal.

The Madison American Dream Downpayment Initiative provides qualified first-time homebuyers, displaced homemakers, and single parents with a long-term deferred loan to assist with purchasing a home located within the City of Madison. The program offers loan assistance ranging from a minimum of $1,000 to a maximum amount of 6% of the purchase price not exceeding $10,000, based on need. The assistance is used to cover the down payment on a home and eligible closing costs.

The down payment assistance is a second mortgage loan which will become due and payable to the City of Madison when the property is sold, transferred or ceases to be the primary residence of the homebuyer. The Madison American Dream loan will be allowed as a third mortgage in the case of Inclusionary Zoning Units or when used in conjunction with other Community Development Office funds where the total limit of assistance does not exceed the limit specified in the annual Program Framework. The loan repayment includes the initial loan amount plus a proportional share of appreciation based on the percentage of assistance provided.

To ensure the loans are consistently originated and processed, Madison American Dream Downpayment Initiative eligibility requirements have been established and approved by the City of Madison CDBG Committee and the Common Council. The links in this section of our web site will detail the program eligibility requirements.


Several of these documents are in PDF format (indicated with an icon like the one to the right). To view these materials, you'll need Adobe Acrobat Reader software, available for free here.

Housing Developers' Toolbox  |  CD Office  |  Department of Planning and Development  |  City of Madison

The CD Office is a part of the City of Madison's Department of Planning and Development. Click here for department info. Community Development Division
City of Madison Department of Planning and Development
215 Martin Luther King, Jr. Blvd., Room 225
PO Box 2627, Madison, WI  53701-2627
Phone: (608) 266-6520  |  Fax: (608) 261-9661  | Email: