Akron Dreams, an initiative that will give first-time homebuyers up to $7,500 toward the purchase of an Akron home, launched Tuesday, city officials said at a joint press conference with East Akron Neighborhood Development Corp., which will administer the program.
Mayor Shammas Malik announced the program earlier this year at the State of the City address and emphasized how it’s designed to turn renters into owners.
“Our goal isn’t simply to build housing,” Malik said. “Our goal is to make sure more Akron residents have access to safe quality and affordable homes and the opportunity to build a future right here.”
This down payment assistance program will be funded with $300,000 from the Department of Housing and Urban Development. This allocated amount is expected to assist 35 families. The city aims to allocate future HUD funding to assist more families, Malik said in a press release.
This downpayment assistance program will be available to those who meet the eligibility criteria.
Who is eligible for this Akron program?
To qualify for this forgivable loan, an individual homebuyer must make $56,000 or less a year. A family of four must have a household income of $80,000 or less. There are also limits on the price of homes: $219,000 for an existing home and $296,000 for new construction.
East Akron Neighborhood Development will work with homebuyers through the process, determine whether or not individuals are eligible, and provide the homebuyer education and counseling course.
Interested applicants must follow a list of criteria to be eligible for the down payment assistance program. For the full list of criteria and how to apply for the Akron Dreams program, visit https://www.eandc.org/akrondreams or contact East Akron Neighborhood Development at 330-773-6838.
Eligibility criteria includes:
- Must have a written pre-approval from a mortgage lender.
- Must be pre-approved for a fixed-rate 30-year mortgage.
- Must receive a minimum of 8 hours of homebuyer education/counseling certification with a HUD-approved counseling agency.
- No bankruptcy or foreclosure in the last two years.
- Minimum credit score of 620.
- Property must be located within the City of Akron limits.
- Liquid assets are capped at $15,000 (any funds above that must first be applied to the purchase).
- At closing, there is no cash back to the borrower.
- Property value cannot exceed 95% of Akron’s median purchase price for single-family housing.
After filing out the interest form, there are further qualifications that interested applicants will need to meet.
City officials also mentioned Made in Akron, a yet-to-launch collection of pre-reviewed home plans available to residents at no cost. The initiative aims to reduce the time, cost and uncertainty involved in building new homes.
