Down payment assistance in Georgia: where it comes from and how to get it
Plenty of Georgia buyers qualify for help with their down payment and never ask. Here is where it comes from and what to check before you take it.
What down payment assistance is
Down payment assistance (DPA) is money toward your down payment or closing costs from a government agency, nonprofit or lender. It comes in a few forms:
- Grants — do not have to be repaid.
- Forgivable loans — a second mortgage that is forgiven if you stay in the home for a set number of years.
- Deferred loans — a second mortgage with no monthly payment, repaid when you sell, refinance or pay off the first mortgage.
- Low-interest repayable loans — a second mortgage with a monthly payment.
Georgia Dream
The state's main program is Georgia Dream, run by the Georgia Department of Community Affairs. It pairs a first mortgage through participating lenders with down payment assistance, and it is aimed at first-time buyers (or buyers who have not owned in recent years) and buyers purchasing in certain targeted areas, within income and purchase-price limits.
DCA sets and updates the assistance amounts, income limits and price limits, and some categories of buyer — such as certain public-service workers and military — may qualify for more. Check the current figures on DCA's site or with a participating lender; we deliberately do not repeat them here because they change.
City, county and nonprofit programs
Several Georgia cities and counties run their own programs, usually for buyers within income limits purchasing inside that jurisdiction. Some can be combined with Georgia Dream; some cannot. Nonprofit housing counseling agencies often know which local funds are open right now — HUD lists approved counselors on hud.gov.
Lender and builder programs
Some lenders offer their own grants or credits, often for buyers in particular census tracts or below an income level, and some builders offer closing-cost help through their preferred lender. These can be easier to use than government programs but read the terms — a credit that comes with a higher rate may cost more than it saves. See builder incentives.
The strings attached
- Homebuyer education — most programs require a course before closing. Do it early.
- Income and price limits — set by the program and usually by county and household size.
- Occupancy — the home must be your primary residence, sometimes for a minimum period.
- Repayment triggers — selling or refinancing early can make a forgivable or deferred loan due.
- Approved lenders only — you have to use a lender that participates in the specific program.
- Time — DPA approvals can add days to a closing; write your offer with a realistic timeline.
- The rate — some DPA first mortgages carry a slightly higher rate. Compare the total monthly payment with and without assistance.
The order to do it in
- Ask a lender which programs you appear to qualify for — request quotes here and say you want DPA options.
- Take the required homebuyer education course.
- Get pre-approved with the DPA built in, so your letter reflects it.
- Tell your agent before you write offers — timelines and seller concessions should account for the program.
- Shop homes within the program's price limit and, if relevant, its target areas.
A worked example: is the assistance worth it?
A first-time buyer qualifies for a deferred, no-payment second loan toward the down payment through a state program. The catch is that the program's first mortgage is quoted at a slightly higher rate than the lender's regular FHA loan.
Ask the lender for two quotes on the same house: one with assistance, one without. Compare three things — cash needed at closing, total monthly payment, and what you would owe if you sold or refinanced in five years. If the assistance is the difference between buying now and buying in three years, the slightly higher payment may be well worth it. If you already have most of the down payment, the plain loan may cost less over time.
Also check what happens if rates fall: refinancing the first mortgage can trigger repayment of a deferred second loan, so you would need the cash or equity to cover it.
Questions to ask a participating lender
- Which assistance programs am I likely to qualify for, given my income, the county and the price range?
- Is the assistance a grant, a forgivable loan or a deferred loan, and what triggers repayment?
- How does the first-mortgage rate compare with your loan without assistance?
- Which homebuyer education course do you accept, and how long does the certificate stay valid?
- How many days does the program's review add, and what closing date should I write into an offer?
- Can the assistance be combined with seller-paid closing costs or a builder incentive?
Common questions
Do I have to be a first-time buyer to get down payment assistance in Georgia?
Many programs, including Georgia Dream, are for first-time buyers — usually defined as not having owned a home in the past three years — but targeted-area and some local programs relax that. Check each program's rules.
Can down payment assistance be used with an FHA loan?
Often yes. Georgia Dream and many local programs pair with FHA, VA, USDA and conventional loans. The lender must be approved for that program.
Do I have to pay down payment assistance back?
Depends on the form. Grants do not; forgivable loans are forgiven after a set period; deferred loans are repaid when you sell, refinance or pay off the mortgage.
How much down payment assistance can I get in Georgia?
It varies by program and changes over time. The Georgia Department of Community Affairs publishes current Georgia Dream amounts, and participating lenders can tell you what you qualify for.
Read next
General information for Georgia home buyers, not legal, tax or lending advice. Loan programs, rates, limits, tax rates and insurance terms are set by lenders, agencies, counties and insurers and change — confirm current figures with them, and have your closing attorney review anything you sign.