For many first time home buyers coming up with the money for down payment is often the largest hurdle they will face. Luckily, there is help available in the form of down payment assistance. Many states including Georgia have set up agencies to provide special programs to help potential 1st time buyers overcome the obstacles in buying their first home.
Many states offer outright cash grants for the down payment, while others will provide a low or zero interest loan to cover the down payment. Listed below are a few Georgia programs that provide down payment assistance.
The Georgia Dream Homeownership Programs
are available to eligible first time home buyers in counties throughout Georgia. Eligible borrowers may choose from these loan programs for assistance with down payment, and closing costs associated with purchasing a home. These second mortgage loans offer:
• No interest
• No monthly payments
• No payment due until home is sold, refinanced or no longer used as the borrower’s principal residence.
Standard, PEN, CHOICE and Communities of Opportunity borrowers will:
1) Have a total annual household income that does not exceed the Loan Income Limits for Down Payment Options on page three
2) Contribute a minimum of $500 of borrower funds to the purchase transaction
STANDARD All eligible home buyers $5,000
PEN Eligible home buyers who are employed by entities that provide public protection (including the military), healthcare, or education. $7,500
CHOICE Eligible home buyers whose household includes an individual living with a disability Loan Amount Atlanta MSA Income Limit Statewide Income Limit $7,500 $30,000 and over
* $25,000 and over* $10,000 Less than $29,999 Less than $24,999
*Maximum income and sale price limits apply
COMMUNITIES OF OPPORTUNITY (CO-OP) Eligible employees of local governments in participating Co-Op counties $7,500
GEORGIA DREAM REWARDS As a reward for higher credit scores and to encourage savings, eligible borrowers will:
1) Have a total annual household income that does not exceed the Georgia Dream First Mortgage Loan Financing Limits on page one
2) May retain cash assets up to the greater of $20,000 or 20% of the purchase price
3) Contribute a minimum of $1,000 of borrower funds to the purchase transaction.
$5,000 if sales price is $150,000 or less $7,500 if sales price is greater than $150,000
SINGLE FAMILY DEVELOPMENT
Affordable homes constructed under this special development program
$7,500 – $20,000
HOUSING CHOICE VOUCHER
In addition to the down payment programs above, eligible participants in the Rental Assistance program may use the value of their voucher for a portion of a monthly home mortgage payment.
Neighborhood Stabilization Program
Apart of The Housing and Economic Recovery Act of 2008, the program is designed to assist local governments to purchase abandoned and foreclosed properties in attempt to help slow the decline of neighborhoods where housing values and conditions are deteriorating due to the presence of foreclosed homes. To address the foreclosure problem, the NSP will purchase vacant foreclosed homes in targeted areas, make necessary repairs on the homes and sell the houses to eligible homebuyers.
Eligibility for NSP varies based on a multitude of family situations, including families as small as one person with an annual income of at least $25,100, to larger families with annual salaries of over $110,000. Any persons, regardless of employer (government employees eligible) who meet the criteria in the application, are eligible to apply for assistance through the NSP.
Federal First Time Home Buyer Grants
Besides the state programs, there are federal funds and grants available to first time home buyers in Georgia through the Homes and Communities program of the United States Department of Housing and Urban Development. Every potential first time home buyer should investigate what they have to offer. First time home buyers should plan to spend the required time investigating to determine how many individual grants they may qualify for.
Local first time home buyer Grant programs:
Atlanta Consumer Mortgage Counseling Service Down Payment Assistance Program Grant (DPAP) (770) 455-1770
Charlton County Community Home Investment Program (CHIP) Down payment and Closing Cost Assistance (912) 496-2549
Clarke County Housing & Economic Leadership Partners Inc Direct Homeownership Assistance Program (706) 549-5200
Georgia Housing Yes Inc Helping Hands Program (GIFT) (678) 937-0432
Hall County Down Payment Assistance Program (DPAP) (770) 297-1800
Multi Counties United Way of Metropolitan Atlanta IDA Program (IDA) (404) 527-354
Are you currently in the market for a home in the Atlanta Area and need A Real Estate Agent? If so, please contact me! I would love to assist you and share more information about these great programs, email me @ email@example.com