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Homebuyers: Check Out ADDI

The American Dream Downpayment Initiative (ADDI) is a federally funded down payment assistance program available through the City of Milwaukee and a consortium of housing counseling providers.

ADDI funds can be used for down payment, closing costs and, on a limited basis, repairs in connection with a home purchase. The assistance is a forgivable loan and requires no repayment if the homebuyer remains the owner and occupant. The loan is forgiven by 20% each year and is forgiven in full after five years.


Homebuyers who have not owned a home in the last three years are eligible. The homebuyer's total annual household income must meet certain guidelines. Household income will determine the maximum ADDI assistance. Homebuyers must also complete a comprehensive Homeownership Education Program with a housing counseling provider. This organization will also assist the homebuyer in the mortgage application process and help the homebuyer address impediments to qualifying for a mortgage loan.

What type of home can you buy?

You can buy a single-family or duplex home or a condominium unit. The property can be an existing home or new construction. The home must be located in the City of Milwaukee. The home must meet all City of Milwaukee housing codes and be free of lead paint hazards. The home you wish to purchase must be inspected after you have entered a sales contract. If repairs, including lead abatement, are needed to meet these requirements you may negotiate with the seller to make the repairs and work with the housing counseling provider to secure additional resources or financing to make the repairs.

Will I need to pay a portion of the down payment and closing costs?

Yes—all homebuyers using ADDI must pay a minimum of the lesser of $1,000 or 2% of the sale price toward down payment and closing costs. Some mort-gage finance programs may require more. Homebuyers will not be allowed to get cash back at closing. Other program requirements not mentioned here may apply.

To find out how to apply log on to or call (414) 562-5070.

(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).

Attention Homebuyers: Do You Qualify For The American Dream Downpayment Initiative?