First Time Home Buyer

 Programs in Georgia

Complete First Time Home Buyer Programs Available in Georgia.

The state agency created by the legislature in Georgia to offer first time home buyer programs is the Georgia Department of Community Affairs. Here is a summary of the current first time home buyer programs that are offered:

First Mortgage Loan Financing

Georgia Dream's First Mortgage provides low-interest rate mortgage loans for borrowers with moderate incomes and modest assets. Except for targeted rural counties and some urban census tracts, borrowers must be first-time home buyers. The loans are 30-year fixed rate mortgages with interest rates that are lower than the existing market rates. Loans are originated under FHA, VA, conventional or USDA/Rural Development guidelines. Homes purchased under the program cannot exceed maximum sales price limits. Application for these loans is made through a network of participating lenders across the state. A home purchased under this program must be the borrower's primary residence.

Down Payment and Closing Cost Financing

Eligible first time homebuyers, single parent families, and displaced homemakers may qualify for a Georgia Dream Second Mortgage of up to $20,000 to be used in conjunction with the First Mortgage Loan. The Georgia Dream Second Mortgage helps to defray the cost of down payment, closing costs, and prepaid escrow expenses associated with purchasing a home. Borrowers must contribute a minimum of 1% (based on purchase price) using their own funds. No cash back is allowed at closing. Income, purchase price and other guidelines apply.

Georgia Dream's Second Mortgage provides 0% interest rate loans to help first-time home buyers with the required down payment, closing costs and prepaid items associated with purchasing a home. Generally these down payment assistance loans are available only if the borrower also uses the Georgia Dream First Mortgage described above. Georgia Dream's Second Mortgage loans are made as delayed repayment second mortgage loans of $5,000. Delayed repayment means that the loan is repaid when the home is sold, transferred or re-financed or if the home is no longer the borrower's primary residence.

Georgia Dream's Second Mortgage loans of $7,500 are available to Protectors, Educators and Health Care Workers (PEN) as well as to anyone who purchases a home which is certified by EarthCraft Homes™, ENERGY STAR® Homes, or EasyLiving Home™ (EV), and up to $20,000 is available for individuals with disabilities and households with disabled members (CHOICE).

Georgia Dream Second Mortgage loans are available from lenders participating in the Georgia Dream Homeownership Program.
 

For complete details on these first time home buyer programs available to Georgia residents, visit the Georgia Department of Community Affairs website.

Se also the First Time Home Buyer Grants page.

Best Lender For First Time Home Buyer Loans

Unfortunately, some lenders do not like to work with first time home buyers (due to not having a track record), and prefer instead to only provide mortgages to people who have previously owned a home. If you do not need help with the down payment and are not in need of any state program, but simply want to apply for a mortgage, we recommend  ING DIRECT Orange Mortgage They have great rates, an easy online application, and welcome first time home buyers. Additionally they have not been as severely hurt by the subprime mortgage crisis and are still approving the majority of applications.

Other First Time Home Buyer Programs & Resources