Purchasing your very first home can be overwhelming. The mere thought of navigating through the complexities of applying for a mortgage and diligently saving up for a downpayment is unattainable – daunting at worst. Fortunately, there exist beacons of hope known as first-time home buyer programs.
As a first-time home buyer in Georgia, you have access to a variety of resources to support you in your journey. The “Empire of the South” offers assistance in the form of homebuyer education courses and counseling. These are designed to provide you with valuable knowledge and guidance throughout the process. This is to ensure that you are well-informed and prepared to be a Georgia homeowner.
But there is even better news! In addition to the educational support, you could be eligible for cash assistance. First-time homebuyer programs in Georgia provide residents with accessible financing possibilities and down payment assistance to help them realize their goals of becoming homeowners. This will help you cover your downpayment and closing costs. However, in order to be eligible, you must meet certain criteria, including income and house price restrictions.
In this blog, we’ll give you a rundown of the best first-time homebuyer programs that are available in Georgia, the ins and outs, and what you need to qualify. Taking advantage of these resources and potential financial assistance lets you navigate the home-buying process with confidence and ease.
Georgia First-Time Homebuyer Programs in 2023
Through the Georgia Dream Homeownership Program, administered by the Georgia Department of Community Affairs, the state of Georgia provides a number of choices for homebuyers in need of down payment assistance (DPA). Similar down payment help is provided by the City of Atlanta through its Atlanta Housing DPA Homeownership Program, which also requires a fixed-rate mortgage to be approved.
Georgia Dream Standard Down Payment Assistance
This down payment assistance is available to any Georgia homebuyer who satisfies the requirements and takes the form of a $10,000 loan with 0% interest. This other loan, which is unrelated to your mortgage, is deferred until you sell or refinance your house. In addition to meeting a number of additional requirements, those who are interested in taking advantage of this help must invest $1,000 of their own money.
Georgia Dream PEN Down Payment Assistance
This is a down payment assistance program for active military personnel, educators, healthcare professionals, and public protectors like police and firefighters. It offers a $12,500 down payment loan with 0% interest.
Georgia Dream Choice Down Payment Assistance
People with disabilities or those who have a family member who is disabled are eligible for this form of down payment assistance. A 0% interest financing for a down payment of $12,500 is available for those qualified.
Eligibility Requirements for Georgia Dream Home Ownership Programs
The Georgia Dream Home Ownership Program is created for residents of the state of Georgia looking to buy a house to live in. Below are the requirements to qualify for the program:
- First-time homebuyer or not owned a home in the past three years.
- A minimum credit score of 640.
- Hold no more than $20,000 or 20% of the home’s sale price (whichever is greater) in assets, excluding retirement accounts such as IRAs or 401(k)s.
- Household income should be 80% of the area median income (AMI), which may vary depending on the location.
- Within home price limits based on the county or region where the property is located.
- Must contribute a minimum of $1,000 of your own funds towards the purchase of the home.
- Completion of homebuyer education.
- Must have a 30-year fixed-rate conventional mortgage, FHA, VA, or USDA loan.
Georgia Dream Hardest Hit Fund Down Payment Assistance
The Georgia Housing and Finance Authority received $15 million from the U.S. Treasury to assist in launching the Georgia Dream Hardest Hit Fund (HHF). This helps to stabilize areas that have been particularly heavily hit by foreclosures, negative equity, and delinquency. In exchange, the HHF Down Payment Assistance Program offers qualifying borrowers utilizing a Georgia Dream mortgage to buy an existing house in particular counties up to $15,000 in down payment assistance.
The current HHF program covers properties in the counties of Fulton, DeKalb, Paulding, Clayton, Muscogee, Douglas, Gwinnett, Chatham, Henry, and Bibb. A second, interest-free loan, is given as payment for the requested amount. As with previous Georgia Dream loans, there are no monthly payments if you continue to live in the property and make your principal mortgage payments on time. The best part is the loan is forgiven five years after the closing date.
Eligibility Requirements:
- A participant in Georgia Dream Loan.
- A minimum credit score of 640.
- Homes must be existing properties in counties that qualify.
- Must have a 30-year fixed-rate conventional mortgage, FHA, VA, or USDA loan.
WE DeKalb DPA Program
The WE DeKalb Program was created by the Decide DeKalb Development Authority as a financial incentive to assist Atlanta firms in attracting and retaining top personnel by lowering the cost of housing in DeKalb County. The program is intended for prospective homebuyers who may earn too much to be eligible for housing subsidies but still need assistance with the down payment and closing costs.
Atlanta’s Down Payment Assistance Program
First-time homebuyers who meet the qualifying requirements and financing conditions of the primary lender are eligible to receive down payment assistance through the Atlanta Housing Homeownership Program. Read our previous blog here to learn more about Atlanta’s Down Payment Assistance Program.
FAQ’s
What are the benefits of participating in Georgia’s first-time homebuyer programs in 2023?
Georgia’s first-time homebuyer programs in 2023 come with an array of advantages, including reduced closing costs, lower mortgage rates, and down payment assistance. By helping first-time buyers achieve their dream of home ownership, these programs aim to increase homeownership’s accessibility and affordability.
How can I get started with Georgia’s first-time homebuyer programs in 2023?
You must first locate a lender taking part in Georgia Dream and get pre-qualified with them for a 30-year, fixed-rate mortgage. Your lender will next complete your mortgage application and submit it to the Georgia Department of Community Affairs for a final evaluation and funding approval once you have completed a homebuyer education course and found your ideal house within the program’s pricing range.
Are there any resources available to help first-time homebuyers in Georgia in 2023?
Yes, there are several resources available to assist first-time homebuyers in Georgia in 2023. These resources may include educational workshops, counseling services, online tools for budgeting and mortgage calculations, and local assistance programs. Making use of these tools can offer helpful direction and assistance during the home-buying process.
Can realtors assist in applying for Georgia’s down payment assistance?
Yes, realtors can assist homebuyers in applying for Georgia down payment assistance programs. Realtors are knowledgeable about the local real estate market and are familiar with the various programs available to first-time homebuyers in Georgia, including down payment assistance programs.
Summary
Georgia first-time homebuyer programs in 2023 offer a range of benefits that can help reduce upfront costs, lower interest rates, and provide down payment assistance.
As a first-time homebuyer in Georgia, it’s essential to be aware of the valuable resources available to support you throughout the homebuying journey. From educational workshops and counseling services to online tools and local assistance programs that will guide you to make informed decisions.
Hiring a local realtor would also be a great help in this process. Realtors can guide you through the application, help you understand the eligibility requirements, and provide valuable insights into which programs may be suitable for your specific situation. They can also help you gather the necessary documentation and work with lenders or program administrators to ensure a smooth application process.
