Best First-Time Homebuyer Programs in Georgia

Thinking about buying your first home in the Peach State? First-time homebuyer programs can be a big help if you’re ready to dive into the housing market as a Georgia resident. When you become a first-time homebuyer, a lot of planning, saving and calculations go into making a purchasing decision. 

If money’s tight, tapping into financial assistance through Georgia's Department of Community Affairs can put homeownership within reach. Here’s an overview of the first-time homebuyer programs in Georgia to help you find the best incentives you get to buy a home this year.

Quick Look: Best First-Time Homebuyer Programs in Georgia

• Best for Low-Cost Mortgage Financing: Georgia Dream Homeownership Program
• Best for Downpayment Assistance: Georgia Dream Standard Down Payment Loan
• Best for Service Professionals: Georgia Dream PEN Down Payment Loan
• Best for Families With a Disability: Georgia Dream CHOICE Down Payment Loan
• Best for Forgivable Loan: Georgia Dream Hardest Hit Fund (HHF)

First-Time Homebuyer Programs in Georgia

Georgia offers home loan and down payment assistance programs. Here’s the scoop on each program and its eligibility requirements. Before you reach out to a mortgage broker or real estate agent, you should look into these programs and see what’s available to you.

Best for Low-Cost Mortgage Financing: The Georgia Dream Homeownership Program

The Georgia Dream Homeownership program is a first-time homebuyer program that offers affordable 30-year fixed-interest rate mortgages. It offers conventional mortgages and loans backed by the Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA) and Veterans Affairs (VA) through approved private lenders for a single-family home.

To qualify, you must be a first-time homebuyer or someone who hasn’t owned a home for at least three years. You can also qualify if you're buying in a targeted area. You'll also need to meet income and assets maximums and complete a buyer education program. 

• Credit score: You must meet the credit score requirements of the underlying mortgage. For example, if your Georgia Dream Homeownership loan is through the FHA, you must meet FHA’s credit score requirements. It’s usually 580-plus but maybe as low as 500 with a larger downpayment. 
• Income limit: Varies by county. For one- or two-person households, $60,500 to $74,000 and $69,500 to $84,500 for households with three or more people. 
• Loan limit: Varies by county. The maximum purchase price ranges from $200,000 to $250,000. 
• Assets: You must have less than $20,000 or less than 20% of the sales price (whichever is higher) in liquid assets. Liquid assets include money in checking and savings accounts, brokerage accounts and other easily accessible funds. 

Best for Downpayment Assistance: The Georgia Dream Standard Down Payment Loan

The Georgia Dream Standard down payment loan offers a second mortgage you can use for your down payment and closing costs. All eligible homebuyers may qualify for a loan of 5% of the property purchase price or up to $10,000, whichever is the lesser amount. 

Georgia downpayment assistance is a 0% loan with no monthly payment. It doesn’t have to be repaid until you sell or refinance the property or no longer use it as a primary residence. To qualify, you must get a mortgage through the Georgia Dream Homeownership Program and meet all of the program’s requirements.

• Credit score: Varies by mortgage type and lender requirements. Usually, 580+ but maybe as low as 500 with a larger downpayment. 
• Income limit: Varies by county. For one- or two-person households, $60,500 to $74,000 or $69,500 to $84,500 for households with three or more people. You'll also need to meet Dream Homeownership assets limits. 
• Loan limit: Varies by county. The maximum purchase price ranges from $200,000 to $250,000. 

Best for Service Professionals: The Georgia Dream PEN Down Payment Loan

The Georgia Dream PEN down payment loan also offers a 0% interest, no down payment second mortgage. It provides 6% of the property purchase price up to a maximum of $12,500. You must get a mortgage through the Georgia Dream Homeownership Program and meet all of the program’s requirements. As with the standard down payment loan, it needs to be repaid when you sell or refinance your home or if you no longer live there. 

To qualify you must work in one of the following professions:

• Protectors: Police department and correctional employees, firefighters (including volunteer firefighters), emergency medical services (EMS), Department of Motor Vehicles (DMV) employees, service members and civil servants working for a military base 
• Educators: School employees, including bus drivers 
• Healthcare workers: Hospital employees, nurses, dental and medical office employees, lab and pharmacy technicians, home healthcare workers, assisted living employees, Red Cross employees, public health workers and others in similar professions
• Military: Active military personnel qualify for the PEN downpayment loan. 

Those who are eligible because of their profession also must meet the following criteria:

• Credit score: Varies by mortgage type and lender requirements. Usually, 580+ but maybe as low as 500 with a larger downpayment. 
• Income limit: Varies by county. For one- or two person households, $60,500 to $74,000 or $69,500 to $84,500 for households with three or more people. You'll also need to meet Dream Homeownership assets limits. 
• Loan limit: Varies by county. The maximum purchase price ranges from $200,000 to $250,000. 

Best for Families With a Disability: The Georgia Dream CHOICE Down Payment Loan

This down payment program is similar to the PEN and standard down payment loan programs, but it is designed specifically to help people with disabilities. You can qualify for  6% of the property purchase price up to a maximum of $12,500 if you have a disability or have a disabled dependent as a member of your household. 

You must get a mortgage through the Georgia Dream Homeownership Program and meet all of the program’s requirements. As with the standard down payment loan, it needs to be repaid when you sell or refinance your home or if you no longer live there. 

• Credit score: Varies by mortgage type and lender requirements. Usually, 580+ but maybe as low as 500 with a larger downpayment. 
• Income limit: Varies by county. For one- or two-person households, $60,500 to $74,000 or $69,500 to $84,500 for households with three or more people. You'll also need to meet Dream Homeownership assets limits. 
• Loan limit: Varies by county. The maximum purchase price ranges from $200,000 to $250,000. 

Best for Forgivable Loan: The Georgia Dream Hardest Hit Fund (HHF)

The Georgia Dream Hardest Hit Fund (HHF) helps first-time homebuyers purchase homes in areas that have experienced economic challenges. You can get $15,000 toward downpayment and closing costs when purchasing an existing home in seven of Georgia’s hardest-hit counties. Eligible counties: Fulton, DeKalb, Clayton, Muscogee, Douglas, Chatham and Bibb. 

The HHF is a forgivable loan, recorded as a second mortgage, with no interest and no monthly payments. The loan is forgiven after five years. To qualify, you can’t have a conviction in the past 10 years for felony larceny, theft, fraud, forgery, money laundering or tax evasion. You'll also need to meet higher credit score requirements. 

• Credit score: 640
• Income limit: Varies by county. For one- or two-person households, $60,500 to $74,000 or $69,500 to $84,500 for households with three or more people. You'll also need to meet Dream Homeownership assets limits. 
• Loan limit: Varies by county. The maximum purchase price ranges from $200,000 to $250,000. 

Best National First-Time Homebuyer Programs

In addition to Georgia-specific loans, you can qualify for national mortgage programs. Government-backed FHA, VA and USDA loans offer favorable terms and the possibility of a low or not downpayment. Learn about these national loans and find the best lenders here. 

Best for Low-Income Buyers: FHA Loans

The Federal Housing Administration (FHA) insures mortgages to encourage people to buy homes. These loans have low down payment and low credit score requirements, so they’re a great choice for first-time homebuyers.

You can make a down payment of 3.5% if you have a credit score of 580 or higher. If you have a credit score of 500 to 579, you have to make a down payment of 10% or more. You must have a credit score of at least 500. 

You can apply to an FHA-approved mortgage lender. FHA loans are a popular mortgage program because of their low credit and down payment requirements. However, you'll still need to meet FHA loan qualifications. 

• Credit score: 500+ with a 10% down payment; 580+ plus with a 3.5% down payment
• Income limit: Varies by area 
• Loan limit: Varies by area and property type 

Rocket Mortgage® offers a seamless online mortgage experience. Even though it’s online, you still have support along the way. You can complete the entire process from home, and experts are available to answer your questions via phone or chat. Rocket Mortgage® has award-winning customer service, and it’s experienced with the FHA loan process. It also offers extensive online educational resources.

• Credit score: 500+ with a 10% downpayment; 580+ plus with a 3.5% downpayment
• Income limit: Varies by area 
• Loan limit: Varies by area and property type. 

Best for Service Members and Veterans: VA Loans

VA loans help service members and veterans purchase homes. It’s a great fit for first-time homebuyers because there is no down payment requirement and no mortgage insurance, which lowers your monthly payments. 

Current service members and veterans may be eligible for loans backed by the Department of Veterans Affairs and offered by private lenders. These home loans don’t require a down payment and don’t require you to pay for mortgage insurance. 

Veterans and current service members must meet minimum service length requirements. Reservists and National Guard members and some surviving spouses may also qualify. Contact the VA to find out whether you’re eligible and that you have a Certificate of Eligibility. 

• Credit score: No minimum
• Income limit: None
• Loan limit: Varies; $766,550 for most U.S. counties

Best National VA Lender: Veterans United

While the VA loan process can be daunting, the experienced professionals at Veterans United are ready to help. Working with an experienced lender can make the process easier.

Veterans United is a popular choice with veterans and has been the top VA lender for four consecutive years. It boasts excellent customer service reviews and a user-friendly website. Representatives are available around the clock to help you navigate the process. You can start applying online or by contacting representatives 24/7. By focusing exclusively on the needs of service members, Veterans United representatives are experts on the VA loan process. 

• Credit score: No minimum
• Income limit: None
• Loan limit: Varies — $766,550 for most U.S. counties

Best for Rural Properties: USDA Loans

The USDA backs loans to encourage people to buy homes in rural areas. You can purchase a home with no down payment. To see which areas are eligible, you can enter an address into the USDA’s eligibility tool. 

USDA loans are an initiative by the U.S. Department of Agriculture to provide applicants with the option of 0% down to buy a home in qualified rural areas. You’ll get a subsidy and a reduced mortgage payment for a short time. However, your income must be below your area’s income limits. If you qualify, you can buy a home with no down payment. Flexible credit guidelines mean you don’t need perfect credit to qualify. 

While there’s no credit score requirement, you do need to show you can handle debt. Lenders will review your credit history. In addition, you must be a citizen, a noncitizen national or a qualified alien.

• Credit score: None
• Income limit: Varies by county
• Loan limit: Varies by county, usually $398,600 to $919,800

Best National USDA Lender: CrossCountry Mortgage

CrossCountry Mortgage can help homebuyers who qualify secure a mortgage for less. To be eligible for this type of loan, the home you want to buy or refinance must be in an eligible rural or suburban area, and your household income must be under the USDA limit for that area. 

• Credit score: 640-plus, but borrowers with a lower score can qualify
• Income limit: $110,650 for households with up to four members; $146,050 for households with up to eight members 
• Loan limit: Varies by county, usually $398,600 to $919,800

How to Qualify

To qualify for any of the Georgia first-time home buyers programs, you must meet the Georgia Dream Homeownership Program requirements. These include:

• Have not owned a home in the previous three years
• Have an income that does not exceed $60,500 to $84,500, based on household size and where you live.
• Get a loan up to $200,000 to $250,000, based on the county. 
• Meet traditional underwriting for the mortgage, including debt-to-income (DTI) thresholds for the lender
• In the case of Protectors, Educators & Nurses (PEN), work in a qualified profession
• In the case of CHOICE, have a family member (or yourself) living with a disability 

How to Apply

To apply for The Georgia Dream Homeownership Program, you can start by contacting a Georgia Dream Participating Lender to prequalify. You can visit www.GADream.com to find a list of participating lenders or get help over the phone. If you prefer phone support to find lenders, call 1-800-359-HOME (4663) to and begin the mortgage loan process and qualify for Georgia first-time homeownership incentives. 

Buying Your First Home in Georgia

First-time homebuyer programs are designed to help you secure your first home. Choosing the lender that is right for you is a big decision. In addition to reviewing first-time homebuyer resources, consider taking a homebuyer education class to learn the ins and outs first. 

Look for local lenders with expertise in Georgia’s programs. Ask the lender which programs might be a good fit for you. It’s always a good idea to contact multiple lenders so you can compare rates, service and mortgage options. Make sure to get all the information in writing so you can refer to it later.

Carefully compare interest rates and fees before you settle on one option. Ready to start? Find more tips for first-time homebuyers, and then find the best mortgage lenders for first-time buyers.

Frequently Asked Questions