Atlanta Down Payment Assistance and First-Time Homebuyer Programs

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.

Are you looking to buy a home in Atlanta? On this page, we’ll break down home buyer programs that will help you become a home buyer.

Down payment assistance programs in Atlanta

Down payment assistance and first time home buyer programs aim to help home buyers make a larger down payment, cover closing costs, or a combination of both. There are several types of home buyer benefits, including grants, forgivable loans, and interest rate reductions and tax credits.

A grant is similar to a scholarship for college. You apply, and if you qualify for the program (i.e. meet all the criteria and the entity still has the money), you can receive funds toward your down payment or for another upfront cost related to your home purchase. 

A down payment loan (or second mortgage loan) is a loan you acquire in order to have the funds for a down payment. Many loan types require a minimum down payment between 3% and 20%. If you don’t have this money saved (many first-time home buyers don’t) then a down payment loan is an option to help you qualify. Some loans are even forgivable if you meet certain requirements like staying in the home for a few years.

Less commonly, some programs come with lower interest rates and tax credits (e.g., mortgage credit certificates) to help lower your monthly payments.

Atlanta Housing Homeownership Program

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.

Statewide down payment assistance programs available in Atlanta

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.

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.