Augusta Down Payment Assistance and First-Time Homebuyer Programs

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.

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

Down payment assistance programs in Augusta

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.

Augusta Homeownership Assistance Program

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.

Statewide down payment assistance programs available in Augusta

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.