In addition, the Georgia Dream Homeownership Program offers down payment and closing costs assistance to eligible borrowers, which can greatly reduce the out of pocket expense to the buyer.

Financing Options

• First Mortgage Loan Financing

  Georgia Dream's First Mortgage provides low-interest rate mortgage loans to eligible borrowers with moderate incomes and modest assets. Except for targeted rural counties and some urban census tracts, borrowers must be first-time home buyers. The loans are 30 year fixed rate mortgages. Loans are originated under FHA, VA, conventional or USDA/Rural Development guidelines. Homes purchased under the program cannot exceed maximum sales price limits. Application for these loans is made through a network of participating lenders across the state. A home purchased under this program must be the borrower's primary residence.

• Down Payment and Closing Cost Financing

  Home buyers who meet the qualifications for a Georgia Dream First Mortgage loan also qualify for Down Payment Assistance of up to $7,500. Used in conjunction with a Georgia Dream First Mortgage Loan, the down payment assistance helps defray the cost of the down payment, closing costs, and prepaid escrow expenses associated with purchasing a home. Borrowers must contribute a minimum of $1000 to the purchase transaction.

  Georgia Dream's Down Payment Assistance is a $5,000, 0% interest rate loan, available only if the borrower uses the Georgia Dream First Mortgage loan described above. Loans are made as delayed repayment second mortgage loans. Delayed repayment means that the loan is repaid when the home is sold, transferred or re-financed or if the home is no longer the borrower's primary residence.

  The loan amount is increased to $7,500 for Protectors, Educators and Health Care Workers (PEN), or for households that include an individual living with a disability (CHOICE).

Homebuyer Education

The Georgia Dream Homeownership Program provides free homebuyer education through a partnership with local entities to help homebuyers take a comprehensive look at the home buying process and home ownership responsibilities. Applicants seeking down payment and closing cost financing are required to attend Homebuyer Education prior to loan closing.