There can be a variety of issues that hinder homebuyers from being able to purchase the home they want in the timeframe they hope for. Fortunately for Georgia buyers, the Georgia Dream Loan Program can assist you in navigating your homeowner’s journey.
How Does It Work?
Prospective homebuyers can go to regular lenders who offer the Georgia Dream Homeownership Program, and they can advise you if you qualify. You don’t have to be a first-time homebuyer to qualify, but you can’t have owned a home in the last three years.
Who Is Eligible?
The program is geared toward low and moderate-income individuals and families. The lender looks at two ratios to help determine eligibility.
- Housing ratio. This is calculated by adding your total potential new mortgage payment, taxes, and insurance, and then dividing it by your total gross income to get a percentage figure.
- Total debt ratio. Your total new monthly mortgage payment and your current monthly debts are tallied up and divided by your gross monthly income to reach this ratio.
Lenders also look at a buyer’s income, credit score, assets, and the home’s price and geographical location to help determine eligibility. Keep in that mind mobile homes, undeveloped land, and time-shares do not qualify.
What Are the Guidelines?
There are several guidelines in place to ensure the program’s resources help the targeted segmented of homebuyers it’s meant to assist. There are certain counties that are approved for the program, along with income maximums. Homebuyers need a middle credit score of 640 and a minimum of $1,000 for a down payment. The program offers a down payment assistance program. In addition, homebuyers can have no more than $20,000 in assets.
All buyers are required to attend either an online or in-person counseling class.
How Do You Get Started?
Contact a lender that offers the Georgia Dream Homeownership Program. Share your income and asset information, agree for them to pull your credit score, and tell them the county the property is in and the price. Discuss whether you will need down payment assistance (which is available as a 0% loan that’s paid back when you sell or refinance the house). If you get pre-qualified, take the required counseling course. You can expect the loan to go through in around 60 days, but your loan officer will be able to give you more specifics.
If you want to buy a home but your income falls into the low or mid-range, your credit history is mediocre, you don’t have a big down payment saved, or you’re purchasing in a county that qualifies for the program, contact us today to explore the Georgia Dream Loan Program. You may be able to secure financing and moved forward with your homebuying plans sooner than you think, and enjoy your dream of owning your own home within months instead of years.
