A Comprehensive Guide to Georgia First-Time Homebuyer Assistance Programs
Written by:
Lauren Hargrave
Lauren Hargrave
Personal Finance Writer
Lauren Hargrave is a writer from San Diego who focuses on technology, finance, and healthcare. She worked in finance for seven years before pivoting to a career in writing, and now, instead of putting numbers into spreadsheets, she writes about them instead.
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Fact Checked by:
Dan Silva
Dan is the Vice President of Marketplace Lending at Own Up. Throughout his career, he has held executive leadership positions in the mortgage and banking industry.
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Navigating the first-time homebuying process can feel daunting. There are so many pieces of information to track and consider when buying a home that it’s easy to lose sight of one of the most important steps in the process: saving money toward your purchase.
There is some good news, though: If you live in Georgia, there are programs that can help you do this.
Georgia Dream Homeownership Program (HOP)
The Georgia Dream Homeownership Program provides down payment and closing cost assistance for first-time Georgia homebuyers in the form of a 0% second mortgage.
There are three programs under the Georgia Dream HOP, each that benefits a different demographic:
- Georgia Dream HOP Standard Loan
- Georgia Dream HOP Protectors, Educators, Nurses (PEN)
- Georgia Dream HOP CHOICE
Georgia Dream HOP Standard Loan
This loan program is geared toward the general population, so any first-time homebuyers who meet income and other eligibility requirements can apply for this loan.
Max Assistance Available: $10,000
Georgia Dream HOP Protectors, Educators, Nurses (PEN)
This loan program is geared toward providing down payment assistance to public servants like police officers, public school teachers, healthcare providers, and active and veteran military service members. Anyone who is employed in one of these professions that also meets the income and other eligibility requirements can apply for this loan.
Max Assistance Available: $12,500
Georgia Dream HOP CHOICE
This loan is intended for people with a family member that has a disability. Anyone who has a disability themselves, or a family member with a disability who will reside at the home, and meets the income and other eligibility requirements, can apply for this down payment assistance loan.
Max Assistance Available: $12,500
What Types of Properties are Eligible?
The maximum eligible sales price to qualify for any of these programs ranges from $297,000 to $350,000, depending on the location of the home. Income thresholds range from $74,500 to $99,500 per year. In addition, homebuyers can have no more than $20,000, or 20% of the purchase price, in liquid assets at the time of closing.
How Does it Work?
Homebuyers that wish to participate in one of the Georgia Dream HOPs should first contact a Georgia Dream participating lender to get pre-approved for a mortgage loan. Once the lender has completed their underwriting process and gives pre-approval, the borrower’s information and loan details will be sent to Georgia’s Department of Community Affairs (DCA) for compliance review and funding approval.
Homebuyers will be required to take a DCA-sponsored education course and contribute a minimum of $1,000 of their own or documented gifted funds.
The entire process takes about 60 days from application to closing.
Is It A Grant Or Loan?
A 0% interest loan is repayable when the home is sold, the loan is refinanced, or the home is no longer the homebuyer’s primary residence.
Atlanta Housing
Atlanta Housing provides down payment assistance of up to $25,000 for first-time homebuyers or those who haven’t owned a home in the last three years. The standard down payment assistance loan for the general population is up to $20,000. Homebuyers working in public safety, healthcare, public education, active military and veterans, and voucher participants could be eligible to receive up to $25,000 in down payment assistance.
Who Is Eligible?
To be eligible for this program, homebuyers must have lived in Georgia for at least six months and have a maximum annual income that is 80% of the area median income or less. Their liquid assets must be $25,000 or less, and they must meet credit approval for an FHA, VA, or conventional home mortgage. In addition, their debt-to-income ratio can’t be higher than 55%.
What Types of Properties are Eligible?
To be eligible, the property must be used as the homebuyer’s primary residence, be located in Atlanta, and have a purchase price of no more than $335,000. If the homebuyer is purchasing the home to rehab it, rehabilitation costs can total no more than $35,000.
How Does it Work?
Prior to receiving approval for down payment assistance, homebuyers must complete one eight-hour homebuyer education course from a HUD-approved education provider. Once the homebuyer receives their certificate of completion, they can apply for the program through a participating lender.
It’s important to note that homebuyers will be required to contribute at least $1,500 of their own money toward the purchase of the house. The processing time for this program is 30 days from the receipt of the complete credit file from the first mortgage lender.
Is It A Grant Or Loan?
This is a 0% forgivable loan as long as the homebuyer owns the home as their principal residence for at least 10 years. Starting in year six, the loan is forgiven at 20% per year and is fully forgiven in year 10. Prior to year 10, the loan must be repaid if the borrower sells the home, no longer occupies it as their primary residence, takes a cash-out refinance of the first mortgage, or takes a reverse mortgage on the property.
What’s Good About This Program?
The level of assistance through this program is on the higher end of available assistance for Georgia residents. This is also an attractive program if the homebuyer plans to stay in their home for at least six years, as the loan is forgiven at 20% per year starting in year six. The incremental loan forgiveness gives homebuyers more flexibility in future plans.
Gwinnett County Homestretch Program
The Gwinnett County Homestretch Program offers down payment assistance up to $10,000 for first-time homebuyers in Gwinnett County.
Who is eligible?
Homebuyers that have an annual income below 80% of the median area income with a credit score of at least 580 and a debt-to-income ratio of 43% or less are eligible for the program.
What Types of Properties are Eligible?
Single-family, detached homes, or townhomes that are located in Gwinnett County and pass standard property inspections. The maximum eligible purchase price is $323,000 for existing homes and $346,000 for new construction.
How Does it Work?
Eligible homebuyers must first complete the prepurchase counseling class, then meet with a mortgage lender before gathering the required documentation and submitting a preapplication to the Homestretch program. Once the application eligibility is determined, the check for the down payment funding will be drafted within 30 days. The homebuyer must contribute at least $1,000 of their own funds toward the purchase of the home.
Is it a Grant or Loan?
This is a 0% forgivable loan that can be completely forgiven if the homebuyer stays in the home for five years.
What’s Good About this Program?
This loan is fully forgiven in five years, which gives participants more flexibility than programs that require homebuyers to stay in their homes for longer periods of time before the loan is forgiven.
Invest Atlanta
Invest Atlanta offers down payment and closing cost assistance of up to $20,000 for homebuyers who don’t own any interest in another property. Keep in mind there are purchase price limits on eligible properties.
There are four programs offered through Invest Atlanta:
- Vine City Renaissance Initiative
- Atl Home Renovation Advantage
- Intown Mortgage Assistance Program
- Perry Bolton Assistance Program.
Vine City Renaissance Initiative
This program is for homebuyers who meet income eligibility limits that are based on household size, and have less than $25,000 in liquid assets. They must also qualify for a 30-year fixed rate first mortgage through FHA, VA, or conventional financing. Eligible properties must be located within the Vine City area.
ATL Renovation Advantage
This program is for homebuyers who are using a home renovation mortgage to purchase their home and have an annual income that meets the program’s eligibility requirements (based on the number of people in the household). Eligible properties can have a maximum purchase price of $385,000.
Intown Mortgage Assistance Program
This program is for homebuyers who meet the maximum annual income requirements based on household size and meet particular debt-to-income and credit score requirements. In addition, they must have $25,000 or less in liquid assets. Eligible properties can have a maximum purchase price of $385,000.
Perry Bolton Assistance Program
Homebuyers can receive up to $20,000. The amount of assistance homebuyers receive is based on their annual income and whether or not the program determines the home is permanently affordable for the homebuyer. Homebuyers’ liquid assets must equal $25,000 or less. Eligible properties must be located in the Perry Bolton Tax Allocation District and have a maximum purchase price of $300,000.
How Does it Work?
All Invest Atlanta programs have the same process. Applicants must attend a 90-minute Question and Answer session and one homebuyer education class. Then they can get prequalified for a loan through a participating lender. Once they find their home, they start the closing process using an Invest Atlanta participating partner attorney.
All program participants must pay at least $1,000 to cover the cost of their education class (Renovation program participants must pay $1,200).
Is it a Grant or a Loan?
This is a 0% forgivable loan that is fully forgiven if the homebuyer stays in their home for at least five years.
What’s Good About This Program?
Invest Atlanta offers a higher level of assistance than most of the other programs and has targeted each of its sub-programs to benefit specific demographics.
Fulton County Homeownership Program
The Fulton County Homeownership Program is a down payment and closing cost assistance program offering up to $10,000 to first-time homebuyers or those who haven’t owned a home in the last three years.
Who is eligible?
First-time homebuyers with an annual income that is below 80% of the area median income for the number of people in their household. For a family of four, that is an annual income of $77,100.
What Types of Properties are Eligible?
Properties located within the Fulton County service area that have a maximum purchase price of $272,000 and can pass a property inspection are eligible.
How Does it Work?
Homebuyers who wish to participate in this program must apply through a participating lender.
Is It A Grant Or Loan?
This is a 0%, forgivable loan that is forgiven at 20% per year, starting in year two. It is fully forgiven in year six as long as the homebuyer is still living at the home as their primary residence.
What is Good About This Program?
Because of the short-term forgiveness element, this program gives participants more flexibility in planning for the future than other programs.
Cobb County Mortgage Program
The Cobb County Mortgage Program is a grant for Cobb County government staff (i.e. those who receive their paychecks from the County Board of Commissioners). It provides down payment and closing cost assistance equal to 1-2% of the first mortgage amount, up to $10,000. Public safety employees could be eligible to receive an additional $15,000 grant.
Who is Eligible?
Cobb County staff who receive their paychecks from the County Board of Commissioners; who qualify for a mortgage with an approved lender; and who meet income, credit score, debt-to-income ratio, and loan amount limits. These limits vary by lender.
What Types of Properties are Eligible?
FHA and VA loans can be secured on the following types of properties as long as they are the homeowner’s primary residence: single-family, attached, or detached homes; 1-4 unit properties; and condos and townhomes, all of which can be either new or existing construction. Freddie Mac loans can only be made on one-unit properties.
How Does it Work?
To receive the down payment and closing cost assistance, applicants must go to the Cobb County website and submit a Request for Verification of Employment. An HR representative will complete the form and send it back to the employee. The employee then takes the form to a participating lender.
Is this a Grant or Loan?
This is a grant; it does not need to be repaid.
What’s Good About This Program?
This program is targeted toward Cobb County employees and does not have a first-time homebuyer requirement.
DeKalb County
DeKalb County provides down payment and closing cost assistance equal to 1-3% of the principal mortgage amount for DeKalb County residents that receive a 30-year, fixed-rate mortgage with a participating lender. The amount of the grant is dependent on the mortgage interest rate for which participants qualify.
Who is Eligible?
DeKalb County residents that have a maximum annual income of $134,960, and meet the same credit score, debt-to-income, and loan amount eligibility requirements for Cobb County. No nonoccupant, co-borrowers, or co-signers are allowed.
What Types of Properties are Eligible?
Same as for Cobb County.
How Does it Work?
DeKalb County residents can apply for the program through a participating lender.
Is it a Grant or a Loan?
Grant, it doesn’t need to be repaid.
What’s Good About This Program?
This program doesn’t have a maximum award amount, nor does it have a first-time homebuyer requirement.
NeighborWorks Columbus
NeighborWorks Columbus provides between $12,500 and $15,000 of down payment and closing cost assistance for qualifying first-time homebuyers and essential workers. Funds can also be used toward the rehabilitation of the home.
Who is Eligible?
Essential workers, including active military and veterans, with an annual income equal to 80% or less of the area median income based on the number of people in the household.
What Types of Properties are Eligible?
Existing single-family homes located within the tri-city area.
How Does It Work?
This program is available through the Federal Home Loan Bank of Atlanta; applicants must apply while applying for a first mortgage with this lender. Borrowers must contribute at least $1,000 of their own funds toward the purchase of the home and can receive no more than $250 cash back when the home purchase is closed.
Is This A Loan Or Grant?
0% loan that is fully forgiven if the homebuyer lives at the property for at least five years.
What’s Good About This Program?
Essential workers don’t have to be first-time homebuyers to participate in this program.
National Faith
National Faith provides between $5,000 and $10,000 of down payment and closing cost assistance for first-time homebuyers. The amount awarded depends on the home’s location and the borrowers’ needs.
Who Is Eligible?
First-time homebuyers that meet the income eligibility requirements. Households with one or two people can have a maximum annual income of $84,000, and households with three or more people can have a maximum income of $96,000 per year. The monthly mortgage payment for the first mortgage must equal less than 31% of the household’s gross monthly income.
What Types of Properties Are Eligible?
Single family homes located in the state of Georgia with a maximum purchase price of $325,000.
How Does it Work?
Homebuyers can apply online from the National Faith website. They must contribute at least $1,000 of their own funds toward the purchase of the home and complete a homebuyer education course.
Is This A Loan Or Grant?
This is a 0% loan that is forgiven as long as the homebuyer lives at the property for at least five years.
What’s Good About This Program?
This program can be used to purchase a home anywhere in the state of Georgia.
Savannah Dream Maker Program
The Savannah Dream Maker Program provides up to $7,500 in down payment, closing cost, and gap financing assistance for qualifying first-time homebuyers.
Who is Eligible?
Homebuyers must qualify for a first mortgage that meets the program’s requirements for interest rate, fees, debt-to-income ratio, and other requirements.
What Types of Properties are Eligible?
New and existing homes that are in good condition and within Savannah city limits. Homes built prior to 1978 can’t have deteriorated paint on the interior or exterior of the home. The home must be unoccupied at the time of purchase unless the home is occupied by either the buyer or seller.
How Does it Work?
Homebuyers must apply for the program through the Savannah Dream Maker website.
Is This A Loan Or Grant?
This is a 0%, 30-year deferred loan.
What’s Good About It?
This program is targeted to homebuyers in Savannah.
Teacher Next Door
Teacher Next Door provides down payment and closing cost grants between $1,000 and $8,000 for teachers, law enforcement officers, firefighters, nurses, public servants, and military service members. Recipients could be eligible to receive an additional $10,681 in down payment and closing cost assistance.
Who Is Eligible?
All teachers and public school administrators and staff, law enforcement officers and staff, firefighters, nurses, public servants, active military service members, and veterans are eligible to apply. The amount they’re awarded will depend on a Next Door Program Specialist’s review of their financial need.
What Types Of Properties Are Eligible?
All properties are eligible.
How Does It Work?
Participants must apply through the website.
Is This A Loan Or Grant?
Grant; it doesn’t need to be repaid.
What’s Good About It?
This is a grant, so the money doesn’t need to be repaid; it also benefits multiple types of public service employees and first responders.
The Bottom Line
If you’re looking to purchase a home in Georgia and need help with the down payment or closing costs, multiple programs are available. The best one for you will depend on where the home is located, whether or not you work for a qualifying employer or profession, and your future plans. A mortgage advisor may be able to help you determine the best program for your situation.
