Everything You Need to Know to Benefit From a Georgia Dream Loan
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The Georgia Dream Homeownership Program may be the solution you’re looking for to secure a mortgage loan and purchase a house. The program, created by the Department of Community Affairs (DCA), is designed to assist low- and mid-income homebuyers who may not qualify for other types of loan programs. This segment of hopeful homeowners has been underserved in the past and doesn’t have many choices when purchasing a property. The Georgia Dream Loan gives them more options.
Georgia Dream Loan Offerings
The program is multifaceted in its offerings. Georgians can take advantage of homebuying counseling classes, down payment assistance, and special financing interest rates. In addition, buyers who are purchasing a property in a county or census tract where at least 70% of the families make an income of 80% or less of the statewide median income may qualify for assistance within the program guidelines.
Requirements for Program Applicants
There are several requirements for those interested in using the Georgia Dream Homeownership Program to buy a house:
- Previous homeownership. The program only works with first-time homebuyers or those who have not owned a home in the last three years.
- Targeted areas. As we mentioned above, there are certain geographical areas where the program applies.
- Income. Only low- and mid-income buyers qualify for the program. These limits depend on the county you’re buying in and are subject to change.
- Home price. The program mainly focuses on modest homes. The maximum home prices typically vary between $275,000-$325,000, depending on the county.
- Homebuyer Education. All applicants are required to participate in homebuyer education, either online in an eHome America course, an individual housing counseling session or an in-person homebuyer education workshop.
- Credit score. A 640 middle credit score is required to qualify for a loan under the program. Those with lower scores can learn how to improve their credit history with the program’s “Ready, Set, Go” online course.
- Cash. Applicants need a minimum of $1,000 to use for the down payment.
- Assets. No more than $20,000 or 20% of sales price (whichever is greater) in assets are allowed.
Other Important Information
- Down payment assistance is available to those who need it. This is a 0% interest loan, which will be paid back when you sell, refinance, or no longer live in the home as your primary residence.
- Pre-payments are accepted, and there is no penalty if you pay the house off early.
- Making payments is easy. You can pay online and by check, depending on your preference.
Buying a home can be expensive and seem daunting, especially if your income is in the low to moderate range. It can seem almost impossible to save a big-enough down payment to qualify for a traditional loan. That’s why the Georgia Dream Loan was created. Contact us today to see if the program paves the way for you and your family to enjoy homeownership.
