Georgia First-Time Home Buyer Programs of 2023
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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 Homeownership Program for help finding mortgage financing. The home loan rates and fees are set by the Georgia Dream program.
Georgia Dream program highlights and eligibility requirements
A wide range of mortgage options are available for first-time home buyers through the Georgia Dream program, including 30-year fixed-rate Federal Housing Administration (FHA), Department of Veterans Affairs (VA) and U.S. Department of Agriculture Rural Development loans with low down payment requirements, as well as conventional home loans. There are several ways to qualify for down payment assistance.
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Highlights
Financing options are designed to be affordable.
Prepared borrowers usually close in about 60 days.
Down payment assistance is available.
Eligibility
640 minimum credit score.
Buyers must invest at least $1,000 of their own money.
Home buyer education required.
First-time home buyers, buyers who haven’t owned in three years and buyers of homes in “targeted areas.”
Choosing the right home loan can boost your chances of approval and may save you thousands in the long run.
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Georgia first-time home buyer programs
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 offers would-be homeowners sessions with a housing counselor to help them work on budgeting and building their credit scores to become eligible for a Georgia Dream home loan.
Georgia Standard Down Payment Assistance
Best for:
Down payment assistance with 0% loans
What you need to know:
All borrowers eligible for a Georgia Dream mortgage may qualify for $10,000 in down payment assistance with 0% interest.
Down payment assistance requires no monthly payments, but you’ll need to repay the entire assistance amount when you no longer use the home as your principal residence or if you sell, refinance or transfer ownership of the property.
Georgia PEN (Protectors, Educators & Nurses)
Best for:
Down payment assistance for public service professionals
What you need to know:
Home buyers who work as first responders, educators or health care providers, or who are active military service members or National Guard, may receive $12,500.
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.
Georgia CHOICE
Best for:
Down payment assistance for homeowners who are disabled or their family members
What you need to know:
If you are disabled or have a family member who is disabled living with you, you may qualify for $12,500 in down payment assistance through the CHOICE program, which stands for Consumer Home Ownership Independence Choices for Everyone.
Down payment assistance comes in the form of a no-interest loan with no monthly payment. You’ll have to repay the full amount of the loan when you no longer use the home as your principal residence or if you sell, refinance or transfer ownership of the property.
Find details about the Georgia Dream mortgage and down payment assistance programs, including income and purchase-price limits and a list of targeted counties, at the Georgia Dream website. 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.
First-time home buyer programs near Georgia
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.
Conventional mortgage
Best for:
Low down payments, limited mortgage insurance premiums
What you need to know:
A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac allow down payments as low as 3% for first-time buyers or lower-income home buyers. Unlike FHA loans, conventional loans allow borrowers to eventually cancel their mortgage insurance or avoid mortgage insurance altogether if they put at least 20% down.
VA loans
Best for:
Military, low down payments
What you need to know:
The U.S. Department of Veterans Affairs helps service members, veterans and surviving spouses buy homes. VA loans are especially generous, providing competitive interest rates, often requiring no down payment or mortgage insurance. Although there is no official minimum credit score, most VA-approved lenders require scores of at least 640.
FHA loans
Best for:
Low credit score, low down payments
What you need to know:
This is the go-to program for many first-time home buyers with lower credit scores. The Federal Housing Administration allows down payments as low as 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500 but requires a 10% down payment for a score that low. Mortgage insurance is required for the life of an FHA loan and cannot be canceled.
USDA loans
Best for:
Low down payments, rural home buyers
What you need to know:
A USDA home loan is a zero-down-payment mortgage for eligible rural and suburban home buyers. USDA loans are issued by the U.S. Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program. There are income limitations, which vary by region. Applicants with credit scores of 640 or higher receive streamlined processing. Those with scores below that must meet more stringent underwriting standards.
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