Georgia Down Payment Assistance and First-Time Homebuyer Programs

Nestled in the heart of the American South, Georgia showcases a vibrant array of flourishing cities, charming towns, a beautiful countryside that connects mountain vistas with stunning white-sand beaches, and a mild climate offering all four seasons. These attributes collectively position Georgia as a premier destination for Southern living.

However, beneath this charming exterior lies a volatile housing landscape. Like many other states, Georgia grapples with affordability, accessibility, and equity issues within the housing sector. Over the past five years, home values in Georgia have surged by 65.3%, culminating in a current median home sale price of $351,300.

Georgia’s current real estate conditions mirror the nationwide pattern of high demand and low supply. Yet, despite the rise, home sales have remained the same at 7,200 as of January 2024, perhaps due to mortgage rates climbing to a two-decade high of nearly 8%. Clearly, there is a pressing need to ease the financial implications of homeownership.

While we acknowledge the apparent challenges, the housing demand does present a unique opportunity for policymakers to guarantee every Georgian has a home. Thankfully, residents can access various down payment assistance programs tailored for first-time homebuyers, and Stairs Financial provides comprehensive information on these initiatives.

Looking for assistance in a specific part of Georgia?

This page provides a thorough overview of the assistance programs available to homebuyers in Georgia, including both statewide and local resources. For specific details on down payment assistance in your local area, access local information here:

• Augusta
• Gwinnett County
• Columbus
• Savannah
• DeKalb
• Atlanta

Down payment assistance in Georgia

Georgia’s housing volatility has encouraged the government to address the financial implications through diverse down payment programs. State Financial offers current information on these programs, enabling Georgians to compare and choose the best-suited option.

Georgia Down Payment Assistance

Georgia offers several down payment assistance programs and first-time homebuyer assistance statewide. Top options include the DPA AFR Advantage Grant Financing Program, Intown Mortgage Assistance Program, USDA, and the Power Purchase Program Reduced Mortgage Insurance. Each program has unique requirements for down payment or closing cost assistance.

Assistance type: Loans, Grants, Awards

Sponsor: The State of Georgia

Eligibility requirements

• These programs are for principal residents only; residents must live in the home for a specified timeframe.
• In most cases, the household income limits for applicants must not exceed program income limits.
• The property must be located within the city limits of Atlanta.

Georgia Dream Homeownership Program

The Georgia Dream Homeownership Program, led by the state’s Department of Community Affairs, helps residents finance their new homes. Qualifying homebuyers can receive up to $5,000 in downpayment assistance. Additionally, they may qualify for $7,500 through the Down Payment Assistance for Protector, Educator and Health Care Workers (PEN), and Down Payment Assistance for Families with Disabilities (CHOICE) programs.

Assistance type: First Mortgage Loans

Sponsor: Georgia Department of Community Affairs

Assistance amount: $5,000 in down payment assistance and $7,500 through specific programs.

Purchase price limit: $250,000

Minimum borrower contribution: $1,000

Eligibility requirements

• Applicants must consider properties in the targeted area and have not owned a home in the past three years.
• Applicants must complete either a homebuyer workshop, individual housing counseling sessions, or an online homebuyer education course via E-Home America.
• The household income limit cannot exceed $69,000 for one or two persons and $79,500 for three or more persons.

Augusta Homeownership Assistance Program

Augusta, Georgia’s second most populous city, sits along the Savannah River and rightfully takes its spot as the south’s Garden City. With a mix of urban lifestyle and historic charm, Augusta offers attractions such as the prestigious Masters Tournament.  However, beyond its Southern hospitality, the city provides numerous appealing aspects for residents, including affordable housing.

The Augusta Homeownership Assistance Program aims to help first-time homebuyers purchase a home within Augusta-Richmond County. This assistance comes in the form of deferred payment low-interest loans from the county’s Housing and Community Development. Loans are forgiven on the condition that homeowners reside in the house for at least five years after the purchase.

Assistance type: Deferred payment loan

Sponsor: Augusta Housing and Community Development

Assistance Amount: $5,000 in down payment or closing cost

Purchase price limit: $160,000 for existing homes and $239,000 for new constructions.

Eligibility requirements

• The program is eligible for first-time homebuyers, displaced homemakers, or single parents.
• The applicant’s annual household income must be under 80% of the area median income.
• The purchased property must serve as the applicant’s primary residence.

Gwinnett County Down Payment Assistance Program

Gwinnett County stands out as one of the state’s most populous and diverse counties. With a rich history from the early 19th century, Gwinnett County combines urban amenities with suburban comforts. Its relatively affordable housing market and average cost of living make it one of America’s fastest-growing counties.

The Gwinnett County Government developed the Homestretch Down Payment Assistance Program to help individuals achieve their dreams of homeownership within the County. This program helps applicants reduce out-of-pocket costs associated with down payment and home ownership. The program is provided via a 5-year, zero-interest loan with deferred payment.

Assistance type: Deferred payment loan

Sponsor: Gwinnett County Government

Assistance amount: $7,500 in down payment assistance

Purchase price limit: $165,000 for an existing home and $228,000 for a new construction

Eligibility requirements

• The program is available to first-time homebuyers whose annual household income falls under 80 percent of the area median.
• Eligible applicants must have a credit score of at least 640, and the debt-to-income ratio must not exceed 43 percent.
• Applicants are also responsible for completing an 8-hour homebuyer pre-purchase class from a HUD-approved counseling agency.

Columbus Financial Assistance for Homebuyers

Columbus, nestled along the Chattahoochee River in western Georgia, combines Southern charm, historical significance, and modern amenities that appeal to tourists and residents. Its thriving economy and rising population have led to an increase in residential and mixed-use developments to meet housing demands.

Neighborhood Works Columbus assists qualified homebuyers to help cover their down payment or closing costs. Residents can choose any of two separate DPA programs: the NeighborWorks Columbus FHLB of Atlanta DPA Program, which provides between $7,500 and $10,000 in down payment assistance, and the Federal HOME program. Both Neighborhood Works Columbus DPA programs are affiliated with the Federal Home Loan Bank of Atlanta.

Assistance type: Deferred payment loan

Sponsor: Neighborhood Works Columbus

Assistance amount: Between $7,500 and $10,000 in down payment assistance for the FHLB program. The assistance amount for the HOME program is based on jurisdiction.

Eligibility requirements

• The annual household income for both programs should be less than 80% of the area median income.
• The household income limit cannot exceed $39,900 for one or two persons and $44,900 for three or more persons.

Savannah Down Payment Assistance Program

Savannah, Georgia’s older city and Chatham County’s county seat, perfectly embodies history and hip, featuring gorgeous gardens, bustling boutiques, edgy artworks, and stately Victorian-era homes. The city also features affordable real estate, influenced by its low cost of living, economic factors, and government initiatives like the Dream Maker assistance program.

The City of Savanna’s Housing and Neighborhood Services Department offers eligible homebuyers with down payment assistance to elevate the cost of becoming a homeowner. However, they take a different approach to other programs by providing help at different levels with the Dream Maker (DM) programs. This assistance can be used for down payment, closing costs, gap financing, and other related expenses; the level of assistance also varies depending on the location and construction type.

Assistance type: Deferred payment loan

Sponsor: City of Savannah’s Housing & Neighborhood Services Department (HNSD)

Assistance amount: $5,000 for Dream Maker 1, Up to $7,500 for Dream Maker 2, and between $20,000 and $60,000 for Dream Maker 3

Minimum borrower contribution: $1,000

Eligibility requirements

• For Dream Maker 1, the home must fall outside Target Neighborhoods and within City limits.
• For Dream Maker 2, the property must be located within CDBG neighborhoods
• For Dream Maker 3, properties must be in Savannah Gardens only and be pre-approved by HNSD prior to construction.

DeKalb County Homeownership Program

DeKalb County, a prominent urban area in Georgia, is renowned for its excellent schools, parks, and recreational facilities. Housing nine colleges and several other postsecondary institutions, DeKalb serves as a key educational hub in the Atlanta Metropolitan Area, making it an attractive destination for families and individuals. DeKalb’s proximity to Atlanta also offers residents the best of both worlds: urban convenience and suburban charm.

The WE DeKalb Down Payment Assistance Program by the Decide DeKalb Development Authority serves as an economic incentive to help employers in Atlanta attract and retain top talents by making homeownership in the County more affordable. This program aims to help potential homebuyers whose earning limits exceed that required for housing subsidies but still need assistance with down payment and closing costs.

Assistance type: Non-repayable Grants

Sponsor: Decide DeKalb Development Authority

Assistance amount: Grants of between 1% and 3% of the purchase price

Eligibility requirements

• The grant is meant to purchase or refinance a home in DeKalb County.
• The maximum income limit for FHA and VA loans is $111,580 and $63,360 for conventional Freddie Mac HFA Advantage loans.

Atlanta Housing Homeownership Program

Atlanta, Georgia’s capital and largest city, has evolved into one of the biggest Metropolitan hubs in the southeastern United States. Known for its rich cultural heritage, vibrant arts scenes, entertainment, and historical significance, Atlanta offers a dynamic urban experience. However, like other major hubs, the cost of living, particularly housing expenses, in Atlanta is notably higher than in other places in Georgia.

As such, the Atlanta Housing Homeownership Program offers down payment assistance to qualified first-time homebuyers, contingent upon meeting the criteria of both the program and the primary lender. First-time homebuyers who haven’t owned a home in the past three years can opt for the standard DPA or enhanced DPA program, which can be combined with other DPA sources if approved by Atlanta Housing and the primary lender.

Assistance type: Deferred payment loan

Sponsor: Atlanta Housing

Assistance amount: Up to $20,000 for the standard DPA and $25,000 for the enhanced DPA

Purchase price limit: $375,000

Minimum borrower contribution: $1,500

Eligibility requirements

• Applicant’s income must not exceed 80% of the current HUD’s MSA Area Median Income.
• The purchased property must be the homebuyer’s primary residence; second homes are prohibited.
• Applicants must meet the primary lender’s credit requirements and secure approval for conventional, FHA, or VA loan financing.
• Proof of Georgia residency for at least six months is required.

Invest Atlanta

Invest Atlanta, the City of Atlanta’s Development Authority, provides multiple options to help make residents’ dream of homeownership possible within the city. These programs include the Vine City Renaissance Initiative (VCRI), ATL Home Renovation Advantage, Intown Mortgage Assistance Program (IMAP), and Perry Bolton Mortgage Assistance Program. Incentives can be combined to reduce the funds needed for down payment or closing costs.

Assistance type: Deferred payment loan

Sponsor: Atlanta’s Development Authority

Assistance amount: $20,000 towards down payment and closing costs 

Minimum borrower contribution: $1,500

Eligibility requirements

• Applicants cannot own interest in any other property
• Participants must contribute $1.500 of their funds towards the down payment.
• Existing properties must pass inspection prior to closing.

Georgia down payment assistance program FAQs

Here are some of the most frequently asked questions from first-time Georgia homebuyers looking for down payment assistance.

Does Georgia have a first-time buyer program?

Georgia offers several state-wide first-time buyer programs, including the Georgia Dream Homeownership Program, the Atlanta Housing Homeownership Program, and Invest Atlanta. Residents can also opt for county-specific downpayment assistance through deferred loans, grants, and first mortgages.

How to buy a house for the first time in Georgia?

The initial step involves assessing your financial health, which includes checking your credit and DTI score. These factors are vital for determining your mortgage amount and securing low-interest rates.

Subsequently, plan your down payment and closing costs by exploring available programs and selecting one that fits. Stairs Financial streamlines this process by identifying eligible programs and connecting you to trustworthy lenders.

What is the minimum down payment in Georgia?

The minimum downpayment in Georgia assumes a 3% down on a conventional mortgage with a minimum credit score of 620. However, potential homebuyers eligible for a VA loan or a USDA loan may not need any down payment at all

Can you get Biden first-time home buyer assistance in Georgia?

The Biden first-time homebuyer assistance program remains a bill under consideration by the 2023-2024 Congress and has yet to be enacted into law. Nonetheless, national initiatives such as the Mortgage Relief Credit and Down Payment Assistance for First-Generation Homeowners will be accessible in Georgia upon implementation.

What type of Georgia first-time homebuyer assistance is available?

Most first-time homebuyer assistance programs in Georgia serve as loans or grants. However, these loans take on different structures, including deferred payments and forgivable loans. Both options are contingent upon applicants residing in the home for specified durations or until the property is sold, refinanced, or the mortgage is paid off.

What is the Georgia first-time homebuyer income limit?

The income limit for down payment assistance for first-time homebuyers in Georgia typically corresponds to 80% of each city’s median income (AMI). However, this threshold might fluctuate based on the city and the household size.

What are some requirements for first-time home buyers in Georgia?

Some standard requirements for first-time homebuyers in Georgia include;

• Applicants should not have owned a home within a certain period, mainly about three years.
• The property purchased must serve as the applicant’s primary residence
• Applicant’s income must not exceed 80% of the current Area Median Income.

How do I qualify for Georgia’s first-time home buyer programs?

The primary qualifying criterion for Georgia first-time homebuyer programs revolves around income limitations, making it advisable to assess your earnings. Additionally, most programs consider the credit score, proof of residency, and property location.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.