Please Note:
ADDI Funds No Longer Available
As of October 13, 2006, Fairfax County's entire allocation of American Dream Downpayment Initiative (ADDI) funds has been committed. As a result, Fairfax County is not able to provide ADDI downpayment and closing assistance at this time.

American Dream Downpayment Initiative Program (ADDI)
The American Dream Downpayment Initiative (ADDI) Program provides down payment assistance to first-time homebuyers who are buying in Fairfax County. This assistance is in the form of a second mortgage loan with a 15-year term at a 5% simple interest rate. However, payments are deferred and the loan is forgiven at the end of the 15-year term. Sale before the end of the 15-year term requires repayment of the outstanding principal and interest.

How much can you borrow and what are the terms?
An ADDI loan is a second mortgage with a 15 year term. Payment is deferred for the entire term of the loan and at the end of the 15 year term the loan is forgiven. If you sell your home or refinance before the end of the 15 year term, you will be required to repay the amount borrowed plus interest on the amount borrowed calculated at a 5% simple interest rate.

The maximum possible amount of assistance available is $10,000 or 6% of the sale price, whichever is greater. You will need to have assets on-hand equal to 1% of the sales price of the home you purchase and you cannot receive money back at your settlement. ADDI can be used to purchase market priced homes or Affordable Dwelling Units (ADUs) sold through the First-Time Homebuyers Program.

ADDI Eligibility
ADDI Eligible Homebuyers and Homes
To qualify to use a ADDI loan to buy your home, you must meet the following eligibility requirements:

• You cannot have owned a home for the past three years (all adult family members).
• You must complete a certified homebuyer education class (all adult family members).
• You must live and/or work in Fairfax County (Fairfax and Falls Church Cities excluded).
• You must receive a current conditional pre-approval for a first mortgage with term meeting ADDI guidelines (see below).
• You must have 1% of the sales price for downpayment and closing costs.
• The home you are buying must be located within Fairfax County (Fairfax and Falls Church Cities excluded).
• The home you are buying cannot cost more than $362,790.
• The home you purchase must be you primary residence (you cannot buy vacation, second, or investment properties).
• You must have a gross annual household income less than the income maximum based on family size listed below:

Eligible First Mortgage Loans and Lenders
Because of the terms and program requirements, there are limitations on the types of first mortgages that may be used with ADDI dowpayment and closing cost. Ineligible first mortgages include: interest only loans, adjustable rate mortgages (ARMs), or balloon loans. First trust financing must be fixed rate, step, or buydown loans which can qualify according to FHA, VA, VHDA, or 35/41 ratio conventional standards.

Likewise, only lenders who are compliant with ADDI underwriting rules can be used as you first mortgage lender. If your lender is not familiar with ADDI rules and underwriting guidelines, they will need to contact the Homeownership Staff at 703-246-5087.

How Can You Apply?
If you are interested in applying for an ADDI loan, you will need to submit an ADDI Loan Application Packet. This application must be submitted with ALL appropriate documentation outlined in the Application Packet. Applications must be mailed or delivered in-person to:

Fairfax County DHCD
3700 Pender Drive, Suite 100
Fairfax, VA 22030
ATTN: ADDI Program

Incomplete applications will be returned via mail. Once your complete application and materials are received, they will be reviewed by Homeownership Staff and submitted to the Loan Underwriting Committee (LUC). Please note, that the ADDI Loan underwriting process and release of funds takes a minimum of two weeks.

Fairfax County is committed to nondiscrimination on the basis of disability in all County programs, services and activities. Special accommodations will be provided upon request. Please allow seven working days for preparation of materials. For information call 703-246-5101 or 703-385-3578 (TTY).