GEORGIA DREAM
Who Qualifies
First time home buyer, or have not owned a home in the past 3-years, or purchasing a home in a targeted area.
Income & Assets
Household income up to maximum limit noted below.
Have liquid assets of no more than $20,000 or 20% of the Sales Price, (whichever is greater).
Benefits Available
Lower Interest Rate than other loan options.
No Interest 2nd Loan
No Monthly Payment: You repay when you payoff the loan, no longer use as your primary residence, sell it, or refinance.
Loan Amount Levels
STANDARD which include: All eligible homebuyers. 5% of the property purchase price or a maximum $10,000 whichever is the lesser amount.
Protectors, Educators & Nurses (PEN): Public protector, educator, healthcare provider, or work for these industries, or active military? 6% or the property purchase price or a maximum of $12,500 whichever is the lesser amount.
Choice includes: Member of your family have a disability. 6% of the property purchase price or a maximum of $12,500 whichever is the lesser amount.
Non-Occupant Co-Borrowers are allowed.
$1,000 minimum buyer contribution.
First time buyers only, (not owned a home in the past 3-years). Targeted Counties - don't have to be 1st time buyer, call for county list..
For existing homes, no new construction.
Primary residence only.
Eligible Properties: Single family dwelling (attached or detached), condominiums, townhomes, and modular homes.
Ineligible Properties: mobile, manufactured homes.
Total Debt Ratios:
Mid-score 700+ = AUS
Mid-score 660 to 699 = 35/43
Mid-score 640 to 659 = 28/36.
Manual: 28/36 max.
Home buyer education is required, online course.
3-years tax returns are required.
Cannot be combined with other DPA funds.
Cannot have $20k or 20% of sales price in liquid funds. Gifts of substantial amounts are considered liquid assets. Stocks and other readily salable securities are considered liquid assets, unless they are restricted by IRA, 401(k) or other similar requirements. IRAs, 401(k) plans and other similarly qualified retirement accounts are not considered to be liquid assets.
Frequently Asked Questions
1. What is the Georgia Dream Homeownership Program?
The Georgia Dream program was created to make homeownership possible for eligible low and moderate income Georgians by providing affordable financing options, down payment assistance, and homebuyer education.
2. How does the Georgia Dream Homeownership Program work?
The Georgia Department of Community Affairs (DCA) acts as the secondary market for lenders who want to provide an affordable mortgage product to low and moderate income Georgians. Potential home buyers apply with participating lenders for Georgia Dream loans. The loans are secured or guaranteed by FHA, VA, USDA-RD or conventional uninsured loans. Once the lender has completed the process and gives credit approval, the information is forwarded to DCA for compliance review and funding approval. Georgia Dream rates are available from your participating lender.
3. Who is an eligible applicant?
An eligible applicant is a first time home buyer, or a home buyer who has not owned a home in the past 3 years, or a home buyer who purchases a home in a targeted area. Applicant must have a minimum middle credit score of 640, must meet income and purchase price limits and must have limited liquid assets.
4. What is a targeted area?
An entire county or a census tract in which at least seventy percent (70%) of the families have a Household Annual Income that is eighty percent (80%) or less of the state-wide median family income, or an area designated by the State as an area of chronic economic distress and approved by the Secretary of the U.S. Department of Housing and Urban Development and the Secretary of the U. S. Department of Treasury.
An eligible applicant does not have to be a first time home buyer if they purchase in a targeted area.
5. What if I have owned a home in another county or state, but I did not live there in the past 3 years?
If you can demonstrate that the home was rented or used by someone else, and that you lived in another residence, then you may qualify for the Georgia Dream program. However, you cannot own other real estate when you close your Georgia Dream loan. The previous home would have to be sold, or your name would have to be removed from the title.
6. How long does the Georgia Dream process take?
The average Georgia Dream process takes about 60 days from application to closing. A delay may occur if the applicant does not provide the documentation necessary for the lender to complete the application and process the loan. Many lenders may complete the process with a shorter timeframe.
7. Requries all applicants to attend Housing Counseling classes, workshops, or one-on-one counseling that is provided by HUD-approved Housing Counseling Agencies. Applicants must contact and attend a class with one of the Housing Counseling agencies on DCA's website or HUD's website or applicants may complete the online class at http://www.ehomeamerica.org/dca. The charge for these classes can range from $50 to $100.
8. What is the liquid asset limit?
An applicant may have liquid assets of no more than $20,000 or 20% of the sales price of the home being purchased, whichever is greater, at the time of closing. GIfts of substantial amounts are considered liquid assets. Stocks and other readily salable securities are considered liquid assets, unless they are restricted by IRA, 401(k) or other similar requirements. IRAs, 401(k) plans and other similarity qualified retirement accounts are not considered to be liquid assets.
9. Who sets the interest rate I will be charged?
DCA sets the interest rate for all Georgia Dream loans. A participating lender must use the Georgia Dream rate and approved fees. No uncommon fees or discount points are allowed on Georgia Dream loans. The lender reserves the rate electronically and the rate is locked for 75 days. (We typically change the rates weekly but reserve the right to change the rate more often.)
10. How much money will I need to have?
The applicant must contribute a minimum of $1,000 of their own money or documented gift funds into the purchase transaction in order to receive the down payment assistance. There may be additional costs associated with the purchase of your home that will be your responsibility.
11. Do I have to pay back the down payment assistance loan?
Yes. The down payment assistance is a 0% interest loan with no monthly payment. A second mortgage lien is placed on your property. It is due when you sell, refinance or no longer occupy the home as your primary residence. When funds are paid back we use the money to help the next generation of applicants start the process. The Georgia Department of Community Affairs may offer other down payment assistance programs that could have different requirements regarding repayment of the down payment assistance. Information regarding other programs will be on the Georgia Dream website.
12. May I pay off the first mortgage loan early?
GA Dream New Program!
It has higher income and sales price limits and does not require your borrower to be a first-time homebuyer.
Minimum Credit Score – 640
Maximum DTI is 45% with credit scores of 640-699
This is an FHA product, therefore you must run DU.
Max DPA on Standard DPA is 3.5% or $10,000 whichever is less. For example, a $300,000 sales price will be capped at a $10,000 DPA
Max DPA on PEN/Choice DPA: 4% or $12,5000 whichever is less. For example, a $325,000 sales price will be capped at $12,500
Acceptable Homebuyer Counseling is required
Single Family – 1 unit homes only
Please read through the attached Term Sheet and FAQs for this program.
Specific guidelines can be found on GA Dreams’ website per the attached.
The stated rate below for this product is 7.50% however is subject to market rates. There is a 2.00 % origination charge regardless of the rate. Please make sure you are comparing this product to the NFM FHA 100% or NFM Zero Down Flex prior to choosing the GA Dream program.
Yes, there is no prepayment penalty with the Georgia Dream program.