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 for 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 with interest rates that are usually lower than existing market rates. 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

  Eligible first time homebuyers, single parent families, and displaced homemakers may qualify for a Georgia Dream Second Mortgage of up to $20,000 to be used in conjunction with the First Mortgage Loan. The Georgia Dream Second Mortgage helps to defray the cost of down payment, closing costs, and prepaid escrow expenses associated with purchasing a home. Borrowers must contribute a minimum of $500 of their own funds to the purchase transaction. Income, purchase price and other guidelines apply.

  Georgia Dream's Second Mortgage provides 0% interest rate loans to help first-time home buyers with the required down payment, closing costs and prepaid items associated with purchasing a home. Generally these down payment assistance loans are available only if the borrower also uses the Georgia Dream First Mortgage described above. Georgia Dream's Second Mortgage loans are made as delayed repayment second mortgage loans of $5,000. 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.

  Georgia Dream's Second Mortgage loans of $7,500 are available to Protectors, Educators and Health Care Workers (PEN) as well as to anyone who purchases a home which is certified by EarthCraft Homes™, ENERGY STAR® Homes, or EasyLiving Home™ (EV), and up to $20,000 is available for individuals with disabilities and households with disabled members (CHOICE). New programs are now available to certain members of the military or their surviving spouses with loan amounts of $10,000 (HONORS and WELCOME HOME)

  Georgia Dream Second Mortgage loans are available from lenders participating in the Georgia Dream Homeownership Program.

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.