First-time home buyer in Georgia: what you need to know
You do not need 20% down, you do need a plan for closing costs, and Georgia's contract works differently from what the internet usually describes.
Who counts as a first-time buyer
For most assistance programs, a first-time buyer is someone who has not owned a home they lived in during the past three years — so a previous owner can qualify again. Some programs waive the requirement for veterans or for homes in targeted areas. Each program sets its own definition, so check the one you are applying to.
Loans that need less than 20% down
Twenty percent down avoids mortgage insurance on a conventional loan; it is not a requirement to buy. The common low-down-payment routes:
- Conventional loans with a small down payment and private mortgage insurance. See conventional loan down payment.
- FHA loans, which allow lower credit scores and a low down payment, with mortgage insurance. See FHA loans in Georgia.
- VA loans for eligible veterans and service members, usually with no down payment.
- USDA loans for eligible areas and incomes — much of exurban Georgia qualifies.
Down payment assistance in Georgia
The state's program is Georgia Dream, run by the Georgia Department of Community Affairs (DCA) through approved lenders. It pairs a first mortgage with down payment assistance for buyers under income and price limits. Some cities and counties run their own programs, and some lenders offer their own grants.
Assistance amounts, income limits and price caps change, so we do not quote them here — check the DCA site and ask your lender which programs they are approved for. Our down payment assistance guide explains how these programs are structured.
Budget for more than the down payment
First-time buyers most often run short on the costs around the down payment, not the down payment itself:
- Earnest money when your offer is accepted (credited back at closing).
- Inspections during the due diligence period, paid out of pocket.
- Closing costs: lender fees, attorney and title fees, Georgia's intangible recording tax on the loan, prepaid insurance and taxes.
- Moving, utility deposits, and the first things that break.
How Georgia's contract protects you
Georgia's standard purchase agreement uses a due diligence period rather than an inspection contingency. During it you can terminate for any reason and generally get your earnest money back. The catch: when it ends, so does that freedom. First-time buyers should negotiate enough days to get every inspection done, and should never let the deadline pass while still undecided.
The first-year paperwork nobody mentions
After you close, file for homestead exemption with your county tax assessor by April 1. You must own and live in the home on January 1 of the tax year. It lowers your taxable value and, in many counties, limits how fast it can rise. It is not automatic.
A worked example: cash you need on a $300,000 home
Illustrative only — your lender will give you real figures. Say you buy a $300,000 home with 3.5% down on a government-backed loan:
| Item | Roughly | Note |
|---|---|---|
| Down payment | $10,500 | 3.5% of price; assistance may cover some or all |
| Earnest money | Set in your offer | Credited back at closing, not an extra cost |
| Inspections | Paid at the time | General inspection plus termite letter and any specialists |
| Intangible recording tax | About $869 | $1.50 per $500 of a roughly $289,500 loan |
| Lender, attorney and title fees | Varies | On your Loan Estimate; compare lenders |
| Prepaid insurance and tax escrow | Varies | Depends on your insurer and county |
First-time buyer checklist
- Pull your credit reports and fix errors before applying.
- Gather two years of W-2s or tax returns, recent pay stubs and two months of bank statements.
- Get pre-approved by more than one lender and ask each which assistance programs they offer.
- Decide your maximum monthly payment, including tax, insurance and any HOA.
- Sign a buyer agreement with scope you are comfortable with.
- Save separately for inspections, moving and a repair cushion.
- Negotiate enough due diligence days to finish every inspection.
- File for homestead exemption by April 1 after you move in.
What to ask a lender as a first-time buyer
- Which loan programs do I qualify for, and what is my monthly payment on each?
- Are you approved to offer Georgia Dream or local assistance programs?
- Does the assistance have to be repaid, and when?
- How much can a seller contribute to my closing costs on this loan?
- Is there a homebuyer education course I must complete, and when?
Common questions
How much do I need to buy my first home in Georgia?
It depends on the loan: some programs require little or no down payment, but you still need earnest money, inspection money and closing costs unless a program or seller covers them.
What is the Georgia Dream program?
Georgia Dream is the state's home ownership program, run by the Georgia Department of Community Affairs through approved lenders. It offers a first mortgage and down payment assistance to eligible buyers within income and price limits.
Can I buy a house with a 580 credit score in Georgia?
Some loan programs allow lower scores, but each lender sets its own minimums on top of program rules. Talk to more than one lender.
Do first-time buyers pay closing costs in Georgia?
Yes, buyers generally pay their own closing costs, but you can ask the seller to contribute in your offer, and some assistance programs help cover them.
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.