In the Peach State, first-time home buyers — considered to be buyers who haven’t owned a home in three years — can look to the Georgia Dream Home Ownership Program for help finding mortgage financing. The home loan rates and fees are set by the Georgia Dream program.
National first-time home buyer programs
Wherever you live in the 50 states, these loan programs make homebuying more affordable, helping first-time home buyers overcome obstacles like limited income, low credit score or lack of a down payment.
Georgia Dream program highlights and eligibility requirements
A wide range of mortgage options exist for first-time home buyers through the Georgia Dream program, including 30-year fixed-rate Federal Housing Administration (FHA), Veterans Affairs (VA) and U.S. Department of Agriculture Rural Development loans with low down payment requirements, or conventional home loans with a 20% down payment. There are several ways to qualify for down payment assistance.
Highlights
-
Affordable mortgage rates.
-
Prepared borrowers usually close in about 60 days.
-
Most first-time home buyers receive down payment assistance.
Eligibility
-
640 minimum credit score.
-
Buyers must invest at least $1,000.
-
Home buyer education required.
What you need to know:
Home buyers who work as public protectors, educators and health care providers, or who are active military service members and National Guard will receive $7,500. You’re eligible if you are:
-
an employee of a police, sheriff’s, highway patrol, probation, correctional or fire department, including EMS and volunteer firefighters
-
an employee of a state-recognized local, city or county school, including colleges and private schools
-
an employee of a state-licensed health facility — for example, a hospital, health department, doctors’ or dentists’ office or nursing home
The assistance is offered as a no-interest loan. You won’t need to make payments, but the money must be repaid when you sell the home or refinance the mortgage.
Summary: 2021 Georgia Dream first-time home buyer programs
-
Georgia Standard Down Payment Assistance provides all eligible borrowers with $5,000 in assistance.
-
Georgia PEN offers $7,500 in assistance to first responders, military, educators, health care professionals and others.
-
Georgia Choice helps qualified disabled borrowers with $7,500 in down payment assistance.
Find details about the Georgia Dream mortgage and Georgia Dream Down Payment Assistance programs, including income and purchase-price limits and a map of targeted counties, at www.GADream.com. For additional information or assistance, email housing@dca.ga.gov.
Only certain lenders are approved by the state to offer Georgia Dream mortgages. Buyers begin the application process by finding a participating lender that can review the requirements with you and help you apply for pre-qualification and preapproval. Lenders may have additional requirements for borrowers. All lenders are required to offer home buyers the same rates and fees, and Georgia Dream has a cap on the amount of fees a lender may charge.
If your credit score is too low to qualify for a Georgia Dream mortgage, there’s still hope. Ready, Set, Go is a home buyer program that helps would-be homeowners work on improving their credit scores to become eligible for a Georgia Dream home loan.