Resources For First-Time Home Buyers In Georgia (GA)

Are you considering buying your first home in Georgia? That's a big milestone, and it can be overwhelming at first. Fortunately, there are plenty of resources designed to help first-time home buyers in Georgia. From financial aid programs and educational events to expert advice on finding the right property, this guide has everything you need to navigate the home buying process with confidence. So, let's dive in and turn your dream of owning a home in Georgia into a reality!

Pros And Cons Of Being A Georgia First-Time Home Buyer

Before diving into your first home purchase in Georgia, it's wise to consider the pros and cons.

Available First-Time Home Buyer Programs In Georgia

Delving into first-time home buyer programs in Georgia? Keep in mind that while these programs offer great benefits, their complex requirements can be tricky for lenders to navigate. Always do thorough research and reach out to the program administrators for clarification.

Georgia Dream Homeownership Program

The Georgia Dream Homeownership Program is a state-run initiative designed to make buying a home easier for Georgia residents, especially those who are buying their first home or have moderate incomes. It offers perks like down payment assistance, competitive interest rates and educational resources to help prospective buyers.

Eligible participants may receive a 0% interest deferred-payment loan, which can be used for down payments or closing costs. The program also includes counseling and education to ensure buyers understand the ins and outs of homeownership and can make informed choices.

Habitat For Humanity

Habitat for Humanity, founded by Millard and Linda Fuller in 1976, stands as the world's largest nonprofit builder. Over the years, they've assisted more than 35 million individuals by constructing, rehabilitating and preserving homes. Headquartered in Atlanta, Georgia, Habitat for Humanity operates in 70+ countries, including the United States.

Their mission is to provide simple, decent and affordable housing solutions. Volunteers play a crucial role in building and renovating homes for deserving families. Notably, Habitat for Humanity doesn't seek profits from home sales, ensuring affordability for qualified individuals. They also offer housing education to empower families and strengthen communities.

USDA Rural Development

The United States Department of Agriculture (USDA) Rural Development program offers significant benefits for home buyers in rural areas. To qualify, applicants must meet certain income limits determined by the location of the property. Generally, households with low to moderate incomes are eligible. The program also imposes loan limits, with the loan amount not exceeding the appraised value of the home.

Credit score requirements for USDA loans are typically more flexible compared to conventional loans, with many lenders accepting scores as low as 640. Additionally, applicants are required to complete a home buyer education course to ensure they understand the responsibilities of homeownership and the terms of their loan.

One of the most appealing benefits of the USDA Rural Development program is the option for 100% financing, meaning no down payment is required. This can significantly reduce the upfront costs for home buyers. Additionally, USDA loans often come with competitive interest rates and lower mortgage insurance premiums compared to other loan programs, making homeownership more affordable in rural areas.

Rocket Mortgage^® ONE+ Program

ONE+ by Rocket Mortgage has several benefits. Chief among them is the ability to put down as little as 1% and get into a home. Rocket Mortgage is providing a grant of 2% of the purchase price. Under this scenario, you would enter your home with 3% equity. Clients who qualify may contribute up to 3% toward a down payment while still receiving the 2% grant.

This is available for both first-time and repeat home buyers. There are no restrictions on where you can live or where you move from. The program is available nationwide.

To qualify for this conventional loan product tied to affordable housing goals, there are several important requirements to keep in mind:

1. Your income cannot exceed 80% of the median income in the area where you're planning to buy. For example, if you're looking to buy in Macomb County, Michigan, where the median income is $90,800, your qualifying income cannot exceed $72,640 ($90,800 × 0.8 = $72,640). You can use Fannie Mae's lookup tool to find your area's median income.
2. You must have a FICO^® Score of 620 or higher.
3. This loan is specifically for single-unit primary residences.
4. When combined with the 2% grant offered, your initial down payment cannot exceed 5%.
5. There's an upper loan limit of $350,000 for this conventional option.

Additionally, while there are income limits, it's important to note that this refers to qualifying income. If you can meet the debt-to-income ratio (DTI) requirements without relying on bonus income or adding another borrower to the loan, that additional income doesn't need to be included in your qualifying income. This flexibility can provide some breathing room during the qualification process.

Available First-Time Home Buyer Programs In Georgia 

Delving into first-time home buyer programs in Georgia? Keep in mind that while these programs offer great benefits, their complex requirements can be tricky for lenders to navigate. Always do thorough research and reach out to the program administrators for clarification.

Georgia Dream Homeownership Program

The Georgia Dream Homeownership Program is a state-run initiative designed to make buying a home easier for Georgia residents, especially those who are buying their first home or have moderate incomes. It offers perks like down payment assistance, competitive interest rates and educational resources to help prospective buyers.

Eligible participants may receive a 0% interest deferred-payment loan, which can be used for down payments or closing costs. The program also includes counseling and education to ensure buyers understand the ins and outs of homeownership and can make informed choices.

Habitat For Humanity

Habitat for Humanity, founded by Millard and Linda Fuller in 1976, stands as the world's largest nonprofit builder. Over the years, they've assisted more than 35 million individuals by constructing, rehabilitating and preserving homes. Headquartered in Atlanta, Georgia, Habitat for Humanity operates in 70+ countries, including the United States.

Their mission is to provide simple, decent and affordable housing solutions. Volunteers play a crucial role in building and renovating homes for deserving families. Notably, Habitat for Humanity doesn't seek profits from home sales, ensuring affordability for qualified individuals. They also offer housing education to empower families and strengthen communities.

USDA Rural Development

The United States Department of Agriculture (USDA) Rural Development program offers significant benefits for home buyers in rural areas. To qualify, applicants must meet certain income limits determined by the location of the property. Generally, households with low to moderate incomes are eligible. The program also imposes loan limits, with the loan amount not exceeding the appraised value of the home.

Credit score requirements for USDA loans are typically more flexible compared to conventional loans, with many lenders accepting scores as low as 640. Additionally, applicants are required to complete a home buyer education course to ensure they understand the responsibilities of homeownership and the terms of their loan.

One of the most appealing benefits of the USDA Rural Development program is the option for 100% financing, meaning no down payment is required. This can significantly reduce the upfront costs for home buyers. Additionally, USDA loans often come with competitive interest rates and lower mortgage insurance premiums compared to other loan programs, making homeownership more affordable in rural areas.

Rocket Mortgage^® ONE+ Program

ONE+ by Rocket Mortgage has several benefits. Chief among them is the ability to put down as little as 1% and get into a home. Rocket Mortgage is providing a grant of 2% of the purchase price. Under this scenario, you would enter your home with 3% equity. Clients who qualify may contribute up to 3% toward a down payment while still receiving the 2% grant.

This is available for both first-time and repeat home buyers. There are no restrictions on where you can live or where you move from. The program is available nationwide.

To qualify for this conventional loan product tied to affordable housing goals, there are several important requirements to keep in mind:

1. Your income cannot exceed 80% of the median income in the area where you're planning to buy. For example, if you're looking to buy in Macomb County, Michigan, where the median income is $90,800, your qualifying income cannot exceed $72,640 ($90,800 × 0.8 = $72,640). You can use Fannie Mae's lookup tool to find your area's median income.
2. You must have a FICO^® Score of 620 or higher.
3. This loan is specifically for single-unit primary residences.
4. When combined with the 2% grant offered, your initial down payment cannot exceed 5%.
5. There's an upper loan limit of $350,000 for this conventional option.

Additionally, while there are income limits, it's important to note that this refers to qualifying income. If you can meet the debt-to-income ratio (DTI) requirements without relying on bonus income or adding another borrower to the loan, that additional income doesn't need to be included in your qualifying income. This flexibility can provide some breathing room during the qualification process.

First Time Home Buyer Grants In Georgia

First-time home buyers have access to grants and education programs that can help lift the financial and emotional burden of buying a home. First-time home buyer assistance programs can help borrowers with closing costs, tax credits, and the education they may need to get started on their home purchase journey.

Georgia Department Of Community Affairs (DCA)

The Georgia Department of Community Affairs (DCA) was created in 1977 to serve as an advocate for local government. In 1996 DCA officially became the state of Georgia’s housing finance agency (HFA). DCA partners with communities to help create growth and success for families and business using state and federal financial assistance. DCA helps communities plan and develop affordable housing and economic initiatives that keep Georgia’s communities thriving. 

Down Payment Assistance

For borrowers interested in purchasing a home in Georgia but don’t have a lot saved for a down payment, a Georgia Dream loan could provide the extra funds needed to get to the closing table. The Georgia Dream Loan down payment assistance program gives homeowners a 0% loan that doesn’t require a monthly payment as long as the borrower is living in the home as their primary residence.

Potential home buyers apply for a mortgage with a participating lender, once they’ve been approved, they can begin the home search for a home that meets the programs criteria.

Below are some of the eligibility requirements borrowers must meet to take advantage of the Georgia Dream program.

Georgia Dream Loan Options

$7,500 – Standard for all eligible home buyers

$10,000 - Protectors, Educators, and Nurses (PEN) for eligible teachers, health care professionals, first responders and members of the military

$10,000 - CHOICE was designed to offer additional assistance to home buyers with family members living with disabilities.

Financial Criteria

• Household income must not exceed the program maximum
• Have no more than $20,000 or 20% of the home’s sales price in liquid assets
• Must meet mortgage loan credit requirements

Types Of First-Time Home Buyer Loans Available In Georgia

First-time home buyers have a range of mortgage options to consider. Below are some common types of mortgage loans designed to meet the diverse needs and financial situations of first-time buyers.

●      Conventional loans: Conventional loans offer first-time home buyers in Georgia flexibility in terms of down payment options, competitive interest rates for those with strong credit histories, and potential eligibility for private mortgage insurance (PMI) cancellation once the loan-to-value ratio improves.

●      Federal Housing Administration (FHA) loans: FHA loans offer first-time home buyers in Georgia benefits such as low-down payment requirements, more lenient credit score criteria compared to conventional loans, and the ability to qualify with a higher debt-to-income ratio.

●      Department of Veterans Affairs (VA) loans: VA loans offer first-time home buyers in Georgia benefits such as no down payment requirement, competitive interest rates and flexible credit score criteria, making homeownership more accessible for eligible veterans, service members and their families.

●      USDA loans: USDA loans offer first-time home buyers in Georgia benefits such as zero down payment requirements, competitive interest rates and eligibility for households with moderate to low incomes living in designated rural areas, making homeownership more attainable for qualified individuals and families.

FAQs For GA First-Time Home Buyers

Let's tackle some frequently asked questions (FAQs) that can shed light on key aspects of the process and help you navigate this exciting journey with confidence.

How can I qualify as a Georgia first-time home buyer?

To meet the qualifications as a first-time home buyer in Georgia, you generally need to have not owned a primary residence within the last 3 years and have the intention of using the purchased home as your primary residence. Seeking guidance from a local real estate agent or lender specializing in first-time home buyer programs can provide valuable assistance in navigating this process.

How much do I need for a down payment on a house as a first-time home buyer in Georgia?

As a first-time home buyer in Georgia, the amount you need for a down payment can vary depending on the type of loan you qualify for and the lender's requirements. Generally, conventional loans may require a down payment of around 3% – 5% of the home's purchase price, while FHA loans typically require a minimum down payment of 3.5%. There are also down payment assistance programs available for eligible first-time home buyers in Georgia, which can help reduce the upfront costs.

What credit score does a Georgia first-time home buyer need?

The credit score required for a first-time home buyer in Georgia can vary depending on the type of loan and the lender's specific criteria. Generally, a credit score of 620 or higher is often recommended to qualify for conventional loans. However, some lenders may accept lower credit scores or offer alternative loan options for first-time home buyers with less-than-perfect credit. It's essential to check with lenders and explore your options to determine the credit score needed for your specific situation.

Does Georgia have a first-time home buyer credit?

Georgia does not offer a first-time buyer credit. However, there are various other programs and incentives aimed at helping first-time home buyers in the state, like the Georgia Dream Homeownership Program. These include down payment assistance programs, favorable loan terms and grants that can reduce upfront costs or provide financial support.

How much are closing costs in Georgia?

Closing costs in Georgia typically range from 2% – 5% of the home's purchase price. These costs can vary depending on factors such as the home's location, the lender's fees, property taxes, title insurance and other related expenses.