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First Time Buyers
American Dream Downpayment Act.
New federal program is in effect to increase home ownership.
On December 16, 2003, President George W. Bush signed the American
Dream Downpayment Act, a new program that will provide grants to help
home buyers with downpayment and closing costs. The proposal
authorizes $200 million dollars for the program for fiscal year 2004.
Program Goals
To increase the home ownership rate, especially
among
minority groups, who have lower rates of home ownership when compared
to the national average. To lower closing costs by approximately $700
per loan in order to stimulate home ownership for all Americans.
Eligibility Requirements
Grant recipients must be first time
home
buyers with annual incomes that do not exceed 80 percent of the area
median income. Dollar Amount of Grants A maximum downpayment grant of
$10,000 or six percent of the purchase price of the home, whichever is
greater. The average subsidy is expected to be $7,500. It can be used
for downpayment, closing costs, and other fees associated with the
home buying transaction. This program differs from other downpayment
assistance programs. Home buyers using the federal program will
receive a grant from the government. Traditional downpayment programs
are funded by home sellers who agree to provide funds for buyers–but
usually tack the amount "donated" onto the price of the house. The
American Dream program will be administered by HUD, and become part of
its existing HOME Investment Partnerships Program, which seeks to
improve the availability of rental housing and stimulate home
ownership throughout the country. American Dream is slated to start in
the Spring of 2004.
For more information contact me by e-mail at:
leo@homesinpoconos.com
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