Columbus Down Payment Assistance and First-Time Homebuyer Programs

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.

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

Down payment assistance programs in Columbus

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.

Columbus Financial Assistance for Homebuyers

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.

Statewide down payment assistance programs available in Columbus

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.