American Dream Down Payment Initiative
Frequently Asked Questions for Lenders

Q.  What is required to prove that the borrower is a first-time homebuyer?

A.  Three (3) years of personal tax returns to show no mortgage interest has been deducted.

Q.  How soon can the loan close once the borrower is approved for ADDI?

A.  IHFA requires a minimum of fifteen (15) business days prior to close to process the assistance.

Q.  What ratios are required for ADDI approval?

A.  The ADDI program does not have specific underwriting criteria. The borrower must qualify under the existing loan program standards, i.e. FHA, VA or conventional.

Q.  If someone is eligible to receive the ADDI grants, are they required to have an IHFA Loan?

A.  No, they do not have to have an IHFA loan but must use an approved IHFA lender who has attending ADDI training.

Q.   Is there any funding available for ADDI grants?

A.  The special allocation of funds from the U.S. Department of Housing and Urban Development (HUD) that was received from 2003 through 2006 for a total of $730,142 which has provided approximately 95 grants. Since the program has been so successful, additional funding has been added to provide for an additional 60 grants.

Q.  Does relocation provision apply to ADDI?

A.  Y Yes, it applies to all HOME funded down payment assistance.

Q.  Would someone who owns a mobile home in a park and rents that space be considered a first-time homebuyer?

A.  Yes, as long as the unit is not real property under Idaho code.

Q.  How long does the online Conditional Reservation process take?

A.  Once the information is completed online, IHFA will respond with an answer within 48 hours. (business days)

Q.  How long is the online commitment good for?

A.  60 days

Q.  Before the lender reserves funds for a borrower do they need to have a property address?

A.  No, but they have to have been pre-approved for a property value.

Q.  If someone uses an ADDI grant with an IHFA loan, can they also use gift funds?

A.  Yes, providing that the ADDI funds are necessary to get the borrower into a basic home.

Q.  Can someone use an ADDI grant and also use the HOME Program Standard $1,000 or $3,000 grant?

A.  No, ADDI cannot be combined with any other IHFA down payment grants.

Q.  If the home is older than 1978 and the purchaser wants a lead-based paint assessment, is the assessment ordered through IHA?

A.  No, if the borrower has chosen to have a lead-based paint assessment completed it is ordered by the lender, the cost for the assessment is an eligible cost with ADDI.