Georgia Real Estate Voice

There is yet another Down Payment Assistance program in GA that many people are not aware of. It's the USDA's Guaranteed Loan Program and offers 100% financing in rural development areas.  Before you dismiss rural development, check it out. It's not necessarily out in the "sticks" and not that far from metro Atlanta, GA.

The Housing and Community Facilities Programs guarantees loans made by private sector lenders. (A loan guarantee through HCFP means that, should the individual borrower default on the loan, HCFP will pay the private lender for the loan.) The individual works with the private lender and makes his or her payments to that lender.  Contact me for a recommended lender.

I have a client that has excellent credit, a 788 credit score and a good paying job. Due to an injury, he was out on disability from his job for a couple of months and depleted a lot of his savings. He wants to buy a home, but didn't have the money to put down.  I suggested we look at HUD homes where the buyer only needs to put $100 down, instead of the typical 3.5% minimum. (Buyers still need to come up with closing costs and money for appraisal and inspections.) There weren't a lot of HUD owned foreclosures in the area he was looking. So, I thought about the USDA program. The US Department of Agriculture has a Rural Development program where home buyers can get 100% financing.

He is now buying a home in Auburn GA in Barrow County. (That's not an area I normally work, but he was a referral from a friend. I don't usually turn down referrals.) It's less than an hour from downtown Atlanta, GA.  

To see if a home you may be interested in is located in the Rural Development area, click on this link and put in the address.  

There are income limits, a maximum of $73,600 for households of 1 to 4 people. To see the limits for each area in GA click here.  

My listing in Franklin County is a small house on Lake Hartwell with a dock. It would qualify for this down payment assistance program.

For expert real estate advice and representation in GA contact local expert Jen Bowman, Realtor and Broker Associate with Success Realty at 404-456-5024.

View more of the Georgia Real Estate Voice.  Search Atlanta GA homes for Sale

Info on $8000 Federal Tax Credit

Info on Georgia's $1800 Tax Credit

Info on Dekalb County Down Payment Assistance

Info on Georgia Dream Down Payment Assistance

Info on the Neighborhood Stabilization Program (NSP)

Info on Buying a HUD owned Home with $100 down

Info on Making Home Buying Easier   

HUD (U.S. Department of Housing and Urban Development) has a program where you can buy a HUD owned home for just $100 down!

Here are the requirements:

• It must be an owner occupied home. This is not a program for investors.
• The home must be purchased with FHA financing.
• This loan incentive is also available to owner occupant purchasers who obtain a FHA Home Repair loan. (203K Loan)
• Homes must be purchased through a HUD registered real estate agent.
• You do not need to be a first time Home Buyer.

The great thing about HUD owned homes is that they have already been inspected and the reports are viewable online before you even go to look at the home. There is also an estimate of repairs. That is not saying that you shouldn't do your own inspection, but this gives you a "heads up". Even though only $100 is required down as opposed to the traditional minimum of 3.5%, Home Buyers will still need money for inspections, closing, insurance etc. and should have money set aside for an emergency fund.

View HUD homes for sale in Georgia.  Contact Jen Bowman, Realtor & Broker Associate with Success Realty and registered HUD agent at 404-456-5024 to view and bid on homes in the metro Atlanta, GA area.

Read more of the Georgia Real Estate Voice for additional Home Buying Programs including down payment assistance.

So you want to buy a foreclosure and would like some extra cash to do it? The Georgia Dream NSP (Neighborhood Stabilization Program) was created to encourage the purchase of foreclosed properties. The funds are from an allocation of federal dollars received by the Department of Community Affairs from the Housing and Economic Recovery Act of 2008.

The program provides $14,000 to eligible borrowers purchasing foreclosed properties in eligible areas. Funds are in the form of a second mortgage lien with no interest and no monthly payments, also known as a soft second. The lien is released over a period of five years and six months. That means if you stay in that house for 5 and a half years, you don't pay it back. Funds may be used for required repairs and/or down payment assistance.

This program began April 1, 2009 and all funds must be used by June 30, 2010.  If you are a first time home buyer, get the most for your money and purchase before December 1, 2009 for an additional $8,000 tax credit.

How to Apply:

All buyers must receive eight hours of in-person home buyer education/counseling provided by a HUD-approved housing counseling agency. Courses are not available on-line.

Contact a Georgia Dream participating lender for pre-qualification and to begin the mortgage loan process. Yes, good credit is still important here.  Call me for a recommendation on a participating lender.

Can I buy a home anywhere in Georgia?
No. You must purchase a foreclosed property in an area of greatest need which means an area that has a large inventory of foreclosures. Counties in metro Atlanta are included in this. For counties outside metro Atlanta please click here.

Are there income limits?
Yes. For the counties of Dekalb, Cobb, Fulton and Gwinnett the income limits are as follows:

• Household of 1   $59,800
• Household of 2   $68,350
• Household of 3   $76,900
• Household of 4   $85,450
• Household of 5   $92,300
• Household of 6   $99,100
• Household of 7   $105,950
• Household of 8   $112,800

For all other counties, please check www.dcaloans.com.

Are only first time home buyers eligible for the Georgia Dream NSP program?
Applicants do not have to be first-time home buyers and can own other real estate. However, the applicant must owner occupy the NSP financed property as his or her primary residence within 60 days of closing. Any rental income generated from the ownership of other real estate would have to be counted as household income for NSP qualification purposes. 

If I am a first time home buyer and I use the Georgia Dream NSP do I still qualify for the federal first time home buyer $8000 tax credit?
Yes, if you purchase a home prior to December 1, 2009.

Can I use other down payment assistance with this program?
No, unlike the traditional Georgia Dream down payment programs, the Georgia Dream NSP cannot be combined with other down payment assistance programs.

What's next? Contact a local Realtor, like me who knows these programs. If you are already working with an agent, ask them for the details. Full time educated Realtors should know about these programs. If not, contact me to be your Buyers Agent and walk you through the home buying process. Jen Bowman, Broker Associate and Realtor with Success Realty 404-456-5024.

Info on $8000 Federal Tax Credit

Info on Dekalb County Down Payment Assistance

Info on Georgia Dream Down Payment Assistance

Read more of the Georgia Real Estate Voice.

The Georgia Dream program has been around since 1977, but changed the name to Georgia Dream in 2005. It helps Georgians achieve the dream of Homeownership by providing First Mortgage Financing and Down Payment Assistance.

Here's how it works:

• They provide the 30 year fixed rate mortgages
• Local lenders approve Conventional, FHA, USD-RD or VA mortgage loans.

How do you qualify?

1. You must be a 1st time Home Buyer or not have owned a home in the past 3 years or purchase a home in a targeted area to qualify for 1st Mortgage Financing. (Targeted areas are not in metro Atlanta.)

2.  If you purchase a home in the Atlanta MSA (Metropolitan Statistical Area that includes the 28 counties that surround Atlanta) your Household income for 1 to 2 people in a household must be less than $68,000.  If you have 3 or more people living in your household, then your income must be less than $78,000.  Counties included in the Atlanta MSA include Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Cobb, Coweta, Dawson, Dekalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Newton, Paulding, Pickens, Pike, Rockdale, Spalding or Walton Counties.  

You may qualify to purchase a home with a sales price of up to $250,000.

If you are purchasing a home outside of these counties, please visit the DCA  website for details on qualifying.

The Down Payment Assistance program is called Georgia Dream 2nd Mortgage Financing.  This is not an 80/20 loan.  Eligible 1st Time Homebuyers may qualify for a GA Dream 2nd Mortgage for down payment and closing costs associated with the purchase of their home.   The Georgia Dream Second Mortgage Financing must be used with a Georgia Dream First Mortgage Loan.  It is considered a "soft second" mortgage because of the terms associated with it.

• No interest
• no monthly payments
• No payment due until home is sold, refinanced or no longer used as the borrower's principal residence.

Eligible borrowers will:

1. Have a total annual household income that does not exceed the limits below
2. Contribute a minimum of $500 of their own funds toward the purchase transaction, and
3. Complete Home Buyer Education with a DCA Home Buyer Education partner or any HUD approved housing counseling agency.  www.HUD.gov  Classes are free.  Contact me for a list of locations.

Georgia Dream Second Mortgage Loan Income Limits

(For Atlanta area counties, all mentioned above except Butts, Haralson, Lamar and Meriwether)

• 1 person in household $39,850
• 2 person household     $45,550
• 3 person household     $51,250
• 4 person household     $56,950
• 5 person household     $61,500

How much can you get for your Georgia Dream 2nd Mortgag Loan Amounts?  You can get 5,000 to $10,000 for different categories

• Standard- All eligible homebuyers $5000
• PEN- Protectors, eligible homebuyers who are employed by entities that provide public protection (including the military), healthcare or education can receive $7500.
• Choice-$7500 to 10,000 for eligible homebuyers whose household includes an individual living with a disability.
• Honors-Eligible homebuyers who are the surviving spouse of military personnel or of a public protector -$10,000
• Welcome Home- Eligible members of Georgia's Army and Air National Guard who purchase a home in the State of Georgia $10,000

Builders, contact me for additional incentives.

The Georgia Dream program can be used with the local county down payment assistance programs.   See my blog on Dekalb County's Down Payment Assistance program. Money is available and there are great homes out there for bargain prices. 

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Jen Bowman is a Realtor and Broker Associate serving the real estate needs of Decatur and Metro Atlanta Georgia.  She can be reached at 404-456-5024.  View Georgia Real Estate Voice for more info on local news, events and real estate.

Did you know that there is Down Payment Assistance available for 1^st Time Home Buyers in Dekalb County? Applications are now being accepted for the DeKalb County First-Time Homebuyer Program, funded by the DeKalb County Community Development Department and administered by the Housing Authority of DeKalb County.

 Here's how it works: All eligible applicants will receive $5,000 towards their down payment, closing costs, or other prepaid expenses. Those who successfully improve their FICO credit scores to 620 or higher may receive up to $8,000.

What are the maximum annual income limits?

Household of 1----$39,850

Household of 2----$45,550

Household of 3----$51,250

Household of 4----$56,950

Household of 5----$61,500

Household of 6----$66,050

Household of 7--- $70,650

Household of 8+- $75,200

What is the maximum purchase price? The purchase price of the home cannot exceed $160,000. 

 Who is eligible? First-time homebuyers that have not owned a home during the last 3 years are eligible. Displaced homemakers and single parents may also qualify. Successful applicants must meet maximum income guidelines, be creditworthy, participate in home ownership pre-purchase counseling, and plan to purchase a single-family home anywhere in DeKalb County, outside the city limits of Atlanta. Homes must be up to all DeKalb County codes at the time of purchase. 

What is the first step to apply? Applicants must first attend a workshop with one of the approved counseling agencies listed below.

How will my credit history affect eligibility?Applicants must be credit-worthy as determined by one of the program's participating lenders. Judgments, garnishments, bankruptcy, collections or too many bills may affect your ability to qualify for a loan.

 Is any other assistance available? Qualified buyers may be eligible for $5,000-$20,000 in additional funds through the Georgia Dream Homeownership program, under the Georgia Department of Community Affairs.

 Housing counseling with an approved agency is the 1^st step to enter this program.  If you already have a contract on a house at the time of application, please be aware that your closing date must be at least 45 days away in order to complete processing. Because of the many HUD rules and regulations, this program may not be for you if you have already signed a contract on a home.

 How much cash must buyers contribute? Buyers must contribute 1% of the total purchase price. So if you are buying the maximum purchase allowed of $160,000, you will need to contribute $1,600.  

A certificate of completion can be obtained by attending classes and individualized counseling that will prepare you to make an informed choice when you purchase your home.Topics covered in the classes include:

• How to get a mortgage
• Money for down payment
• Planning for homeownership responsibilities
• Evaluating your ability to afford a home
• Types of financing available
• Budgeting and credit
• Understanding your FICO score
• Avoiding foreclosure

Following class completion, you will also be required to sit down with a certified housing counselor who will go over your own personal situation and advise you on the best way to proceed to become a new homeowner in a way that works out best for you. Class times and locations will vary by the counseling agency, so call now to enroll in a class that fits your schedule.  

Approved Housing Counseling Agencies 

•         Consumer Credit Counseling Services of Greater Atlanta 1-888-239-8516, ask Operator for the DeKalb County 1st Time Homebuyer Program,Referral code 098 www.cccsinc.org

•·         DeKalb Metro Housing Counseling Center  404-508-0922  e-mail: dmhcc@bellsouth.net

•·         Green Forest Community Development Corporation 404-486-5768  www.gfcdc.org

•·         D&E, A Financial Education & Training Institute, Inc. 770-961-6900  www.depower.org

•·         Housing Authority of DeKalb County 404-270-2600  www.dekalbhousing.org

•·         Urban Hope Homeownership Center 770-696-9607 www.urbanhope.com

•·         Reynoldstown CDC 404-525-4130 ext. 15 www.reynoldstown.org

•·         HomeFree-USA 404-607-0800  www.homefreeusa.org

 If you are considering buying or selling a home in Dekalb County, contact Jen Bowman, Realtor, Success Realty at 404-456-5024.

See More Down Payment Assistance Programs

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