Georgia Real Estate Voice: Georgia Dream Homeownership Program - Down Payment Assistance

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.