Do you live in a rental home in Georgia? Are you aspiring to own your first home? If your minimal credit rating is 640, and your savings towards the property is now $1,000 or more, then you qualify for the Georgia Dream Program. The Georgia Dream Program avails affordable mortgage options to first time home buyers in Georgia. Imagine getting down payment assistance and affordable mortgage rates to purchase your first home. And, that’s just one amongst the many first time home buyer programs for Georgia available today. Here is the full list to make your dream home in Georgia a reality.
Georgia Dream Programs
The Georgia Dream Programs initiative makes it possible for Georgian residents with low to moderate incomes to access affordable mortgage financing as follows:
The Georgia Dream Program Homeownership Fund Highlights
• Low-interest rates
• Quick buying process
• Can combine with other down payment assistance programs
A good credit rating of at least 640 and proof of available cash or short term assets worth at least 20% of the property value is a must. Still, the program insists on mandatory homebuyer education for all potential borrowers. It is a precautionary measure ensuring all borrowers understand what is at stake. Plus, the property price limits will increase or decrease depending on the family’s location and size.
2. The Standard Georgia Dream Down Payment Fund Highlights
• Allows for deferred repayments
• Attracts no interest on the loan
This Standard Georgia Dream Down Payment Fund is a no-interest loan, assisting the buyer in closing costs and raising sufficient down payment. Apart from contributing $1,000 or more toward the property, the borrowers will have to repay the loan in full only when they vacate the home, sell it, or seek refinancing.
3. The PEN Georgia Dream Down Payment Fund
Any Georgian resident working in the protection (police force or military), state-recognized schools, or state-licensed and certified healthcare facilities can receive up to $7,500 mortgage financing through this program. Here, the applicants will pay zero interest rates. Plus, they will only repay the loan when they want to sell the property or move to a new primary residence.
4. The Georgia Dream CHOICE Down Payment Fund
The Georgia Dream CHOICE Down Payment Fund is specific to borrowers with at least one of their household members living with a disability. It finances up to $7,500 of the property value, helping the borrowers pay for the closing costs and achieve a quick buying process. The borrower contributes $1,000 or more towards the property value.
5. The Georgia Dream HHF Program Highlights
• No interest on the loan
• Deferred repayments
• Loan forgivable after five years
Finally, the Georgia Dream HHF Program caters to first-time homeowners in regions going through tough economic times. As the 2020 Coronavirus pandemic threatens the Georgia economy, this fund will help many residents struggling to stay afloat. The program may have to include pandemic hardest-hit areas in Georgia like Athens, Albany, and Randolph as beneficiaries. The program pays for up to $15,000 that will assist in meeting the down payment requirement and offset the closing costs.
Federal Programs for First Time Home Buyers in Georgia
1. Federal Housing Administration (FHA) Loans
First time home buyers with a minimal credit rating of 580 only need to raise 3.5% of the property value as a down payment. When the credit score is between 500 and 579, the potential buyers need 10% down payments. Now, considering that the current mortgages ask for as much as 20%, this option is quite achievable.
Other highlights of the FHA loans include allowing for a debt-to-income ratio of up to 50%. Meaning, startup owners who have at least half of their incomes committed to servicing other loans are still eligible for the FHA loans. And, did you know that FHA average interest rates are always below average? For example, a 30-Year Conventional Loan charges 2.875% (2.875%APR), and a 30-Year FHA Loan has a 2.25% interest rate (APR3.226%).
Then opt for this funding if you:
• Are yet to stabilize your credit history
• Have limited savings towards a down payment or
• Are currently servicing other loans taking up the bulk of your income
2. Georgia VA Home Loans
The VA Loans are affordable mortgage financing options for American Veterans. Georgia has at least nine military bases with veterans seeking financing for their new homes. For example, the Savannah VA loans are quite popular, with veterans residing in Southern City. Notably, this financing requires zero down payments. Hence, it will pay for the full amount of the property value, where borrowers will not need to secure private mortgage insurance. And the closing costs are considerably lower.
On the flip side, the application process for VA loans is quite lengthy. Veterans need to have a minimum minimal credit rating of 620. Also, there is a loan limit that depends on which city you reside in Georgia, and the type of home you want to purchase. For example, a borrower who wants financing for a single-family home in Abbeville city will access a maximum of $510,400. In contrast, buyers in Atkinson will access up to $484,350.
• Georgia VA loans are suitable for veterans who have monthly savings.
3. USDA Loans
The USDA Loans pay for single-family homes, especially in rural or semi-rural areas where it is less populated. Such regions in Georgia include Cumming, Lavonia, and Dublin. Here, most residents earn less than half of the US median income. Hence, they may struggle to access traditional mortgage financing options. Still, borrowers from these regions, with such low income, must have a good credit score. Otherwise, they will need to foot at least 10% of the down payment.
To get the best out of the available first time home buyer programs for Georgia, analyze your income to determine which property you can afford. Next, compare offers from several lenders. You want to opt for the loan facility with the best interest rates, quick closing, and a convenient down payment requirement. Then, seek financial advice from an expert before you commit to the program.