Purchasing a home is a dream come true for many people, but the down payment can be a huge obstacle. For first-time homebuyers and those with low to moderate incomes, overcoming declining affordability can be particularly difficult. The good news is that metro Atlanta residents can start generating wealth by purchasing a home, thanks to Atlanta Down Payment Assistance. The program offers financial assistance to eligible individuals and families who are seeking to purchase a home in the city of Atlanta. This is a great help for people who are having a hard time saving enough money for a downpayment.
Let’s take a closer look at the Atlanta Down Payment Assistance Program, and how it can help you achieve your dream of homeownership.
An Overview of Atlanta’s Down Payment Assistance Program
Atlanta Down Payment Assistance Program is given in the form of a loan that can be forgiven. This means that if you stay in the house for a predetermined amount of time, you are not required to pay back the loan. The duration varies depending on the level of assistance offered.
For instance, you must stay in the house for at least five years if you receive $10,000 in aid, and 7 years if you get $20,000.
Atlanta Down Payment Assistance provides a standard loan of up to $20,000 for anyone who is eligible for the program and up to $25,000 for current military or veterans, para-professionals and professionals from education, healthcare, and public safety.
The assistance is given on a first-come, first-served basis. No additional aid will be offered until the next fiscal year once the program’s budget is depleted.
How to Qualify for the Down Payment Assistance Program?
First-time homebuyers who qualify and adhere to the financing guidelines of the principal lender are given down payment help through the Atlanta Housing Homeownership Program. This is available to first-time home buyers or homebuyers who haven’t owned a home in the last three years and are residents of Georgia for at least 6 months. Furthermore, the purchased property must serve as the primary residence of the homebuyer.
To qualify for the program, you must meet certain eligibility requirements. These include the following:
Income Limits
Your household income must not exceed a certain limit, which is determined by the program. This limit varies depending on the size of your household and the area where you plan to purchase your home. In general, it must be at 80% or below of Area Median (Home Adjusted Income).
Buyer liquid assets must not exceed $20,000 or 20% of the sales price whichever is greater.
Credit Score
You must have a credit score of at least 640 to qualify for the program. This requirement is in place to ensure that you have a good credit history and can manage your finances responsibly.
Primary loan can have a term of 15, 20, 25, or 30 years with a fixed rate.
Homebuyer Education
You must complete a homebuyer education course before you can receive assistance from the program. This course will help you navigate the home-buying process and ensure that you are prepared to take on the responsibilities of homeownership. This is an 8-hour Homebuyer Education class from approved HBEs by the Department of Housing and Urban Development (HUD). These classes cover topics such as budgeting, home maintenance, and the home buying process.
You can visit this link for the list of approved homebuyer educational counseling providers.
Purchase Price Limits
The program has set purchase price limits that vary depending on the location of the property. You must ensure that the property you are purchasing falls within these limits. The maximum purchase as of this date of writing is $335,000.
Property Requirements
The property you are purchasing must meet certain requirements, such as being in the city of Atlanta and being used as your primary residence. Vacant lots are not eligible for the program.
Additionally, a buyer’s contribution of not less than $1,500 for the purchase of the property is required.
How to Apply for Atlanta Down Payment Assistance Program
You must first locate a lending partner before applying for the Atlanta Down Payment Assistance Program. These lenders have received program approval and are acquainted with the prerequisites and application procedure. You can check here for the list of participating lenders.
After locating a participating lender, you must attend a pre-purchase counseling session. This class will clarify the home-buying procedure for you and make sure you’re prepared to assume the responsibilities of homeownership.
The program’s application must then be completed, together with any required supporting papers, including proof of your income, employment history, and credit history.
You will receive a commitment letter outlining the loan’s terms and conditions as well as the amount of assistance you will receive after your application has been approved.
The Impact of the Atlanta Homeownership Down Payment Assistance Program in The Community
The Atlanta Down Payment Assistance Program has a positive effect on the neighborhood as a whole in addition to helping specific families and individuals. This is achieved through increasing homeownership rates in Atlanta.
Homeownership enhances community spirit and local stability. It also helps people and families prosper financially. As more families and individuals are able to purchase homes, the community becomes more stable and connected. This is because homeowners are more likely to take an active role in their community like participating in neighborhood associations and supporting local businesses. With this, the value of the property in the area will also have a substantial increase.
Summary
The Atlanta Down Payment Assistance Program is a valuable resource for those seeking to purchase a home in the city of Atlanta. The program’s financial assistance can help make homeownership a reality for those who may otherwise struggle to save enough money for a down payment.
By offering financial assistance, the program helps to remove one of the biggest obstacles that may prevent families and individuals from becoming homeowners. This assistance is a much-needed resource for those who may not have access to large amounts of savings or who may be living paycheck to paycheck.
Homeownership provides a variety of benefits, both financial and personal. Exploring these benefits and how they can positively impact a family or individual’s life can be a powerful motivator for those considering applying for the program.
Hummel Group, a signature partner of Keller Williams, sees the ability to own a home as essential for generating wealth for both families and individuals. Families that own property might accumulate equity over time, which can bring about stability and security in terms of money. This equity can be utilized as a down payment for a future home or to establish a small business or even to cover college expenses. Families are better able to meet their long-term financial goals and support the expansion of their communities’ economies when they accumulate wealth through homeownership.
