Read City of Milwaukee text version

CITY OF MILWAUKEE AMERICAN DREAM DOWNPAYMENT INITIATIVE (ADDI) PROGRAM HIGHLIGHTS

The American Dream Downpayment Initiative (ADDI) is a federally funded downpayment assistance program available through the City of Milwaukee and a Consortium of Housing Counseling Providers.

Eligibility

o First-time homebuyers (buyers who have not owned a home in the last three years) o Homebuyers with a total annual household income at or below 80% of the Milwaukee County Median Income Guidelines (see table on the reverse side of this sheet) o Homebuyers must have a file established and completed a comprehensive Homeownership Education Program with one of the approved Housing Counseling Providers prior to preapproval and writing an offer to purchase.

Benefits & Uses

o o o o 5-year, 0% forgivable loan, mortgage recorded at closing Awards of up to $5,000 Awards can be used for downpayment and closing costs Awards can be combined with other assistance programs - DPP, other AHP, HCRIH, EAH requirements of all programs must be met

Eligible Properties & Requirements

Single-family, duplex and condominium units located in the City of Milwaukee The property can be an existing home or existing new construction The property must be inspected by one of the 6 approved ADDI home inspectors The property must undergo a City of Milwaukee Interior & Exterior Code Compliance Inspection as well as a Lead Risk Inspection conducted by the Milwaukee Health Department o The property must meet all City of Milwaukee housing codes and be free of lead paint hazards. If repairs are needed to meet these requirements the buyer is encouraged to negotiate with the seller to make the repairs and/or work with the Housing Counseling Provider to secure additional resources or financing to make the repairs. o Buyer must allow a minimum of 45days to close from date offer accepted. o o o o

Financing & Other Requirements

o Mortgage interest rates and terms must be no more than reasonable market rate and terms (cannot be more than 1% above the WHEDA rate at time of application) o Homebuyer must invest a minimum of $1,000 or 2% of the purchase price (whichever is less) toward downpayment and closing costs. If the mortgage program requires more, the homebuyer must invest that amount. o Homebuyers will not be allowed to receive cash back at closing (adjust loan amount) Please see reverse side

C:\DOCUME~1\jmtabak\LOCALS~1\Temp\ADDI_Guidelines[1]-1.doc Rev. 2/07

ANNUAL HOUSEHOLD INCOME LIMITS MAXIMUM ADDI ASSISTANCE GUIDELINES

MAXIMUM ADDI ASSISTANCE 1 Person $5,000 $ 37,650 SIZE OF HOUSEHOLD/ANNUAL INCOME 2 Persons $ 43,000 3 Persons $ 48,400 4 Persons $ 53,750 5 Persons $ 58,050 6 Persons $ 62,350 7 Persons $ 66,650 8 Persons $ 70,950

*Awards of $5,000 are provided to homebuyers using ADDI funds towards downpayment and closing costs for the purchase of existing single, condo and duplex properties (old or new). A minimum of $1,000 must be applied towards downpayment *ADDI funds CANNOT be used on new construction spec houses

Like HCRIH, to ensure long-term success of home buyers, recipients of ADDI funds must be certified as eligible with a minimum of six hours of counseling and education and be full loan package customers of ADDI Consortium members PRIOR to making an offer on property. You are urged to refer your customers now to a Consortium member for counseling, education and loan packaging services. HOUSING COUNSELING PROVIDERS

Career Youth Development 2601 N. Martin Luther King Drive Milwaukee, WI 53212 264-6888 264-5622 fax United Community Center 1028 S. 9th St. Milwaukee, WI 53204 384-3100 649-4411 fax Hmong/American Friendship Association 3824 W. Vliet Street Milwaukee, WI 53208 344-6095 344-6581 fax Housing Resources, Inc. 8532 W. Capitol Drive, #222 Milwaukee, WI 53222 461-6330 461-6320 fax Select Milwaukee, Inc. 2209 N. Martin Luther King Drive Milwaukee, WI 53212 562-5070 562-5072 fax

Funding for the City of Milwaukee Community Block Grant Administration American Dream Downpayment Initiative is provided through the U.S. Department of Housing and Urban Development HOME Program. EQUAL HOUSING OPPORTUNITY

C:\DOCUME~1\jmtabak\LOCALS~1\Temp\ADDI_Guidelines[1]-1.doc Rev. 2/07

ADDI Grant Checklist

To ensure that ADDI funds are processed timely, please be sure to provide the following documentation to the Housing Counseling Provider assisting your buyer. Failure to do so may result in processing delays. Thank you for your cooperation. Offer to purchase, including all counteroffers and amendments Earnest Money Receipt Full loan application (not pre-approval application) Good Faith Estimate of Closing Costs Verification of any other grants, gifts, loans, etc Updated Credit Report (within the last 90 days) The following are required five (5) days before closing: Appraisal (summary and addendum as appropriate) Loan Commitment Title Insurance with legal description of property Home Insurance Binder (with paid receipt) Private Mortgage Insurance Commitment/Approval Closing Date ______ ______ ______ ______ ______ ______ ______ ______

The following are required at closing or within five (5) days after closing if Housing Counseling Provider unable to attend: 1st Payment Letter Repair Escrow Agreement HUD 1 Settlement Statement ______ ______ ______

The Housing Counseling Provider will forward the following documents for mortgage underwriting: ADDI Award Commitment/Eligibility Scope of Work & Repair Estimates (if repairs needed) The following costs need to appear on the HUD-1 Settlement Statement: $21 ADDI Recording Fee for Single family property; $25 for Duplex Property (Housing Counselor Provider will provide Note & Mortgage, Closing Agent will record original mortgage) POC - $75 Code Compliance Inspection Fee to City of Milwaukee (Housing Counseling Provider will submit application with payment to DNS once home inspection completed at beginning of transaction) Repair Escrow Fee (if needed)

C:\DOCUME~1\jmtabak\LOCALS~1\Temp\ADDI_Guidelines[1]-1.doc Rev. 2/07

______ ______

Information

City of Milwaukee

3 pages

Report File (DMCA)

Our content is added by our users. We aim to remove reported files within 1 working day. Please use this link to notify us:

Report this file as copyright or inappropriate

90587


You might also be interested in

BETA
City of Milwaukee