Downpayment Assistance Programs

      Down payment assistance programs have sustained during the housing market roller coaster. Some of the more popular programs went away but some very attractive ones are available through various counties. They all have income limits and restrictions on selling the property within a time frame, but the question is---can you qualify? The answer may surprise you.

      The Georgia Dream Program is probably the most popular down payment assistance program in Metro Atlanta. It ranges from $5,000 to $7,500. It requires that the home be your primary residence, you haven't owned a home in 3 years, and that you attend home buyer classes. It is in the form of a second mortgage that is repaid when you sell or refinance the home. Income requirements for a couple are $69,000 in the Atlanta MSA with a max home price of $250,000 and $59,500 in the rest of the state with a max home price of $200,000.

     The HomeStretch Down Payment Assistance Program is unique to Gwinnett County. It is $7,500 and is only repayable in the first five years; after five years, the loan is satisfied and doesn't have to be repaid.  It has a $40,150 income cap on a single person and $45,900 for a couple. Gwinnett County also offers a Neighborhood Stabilzation Program (NSP) that gives up to $22,500 towards the purchase of specially designated homes up to $200,000.  I have a list of county-specific down payment assistance programs on my website.

     HUD still has one of the most attractive 'down payment assistance' programs it reduces your required down payment on an FHA insured loan from 3.5% of the sales price to $100. You have to pay full price for the home, but HUD homes are usually 10-15% less and competing homes in the area in my experience. Your lender can use the HUD appraisal on file if it's less than 90 days old, saving you another $400. HUD also does a BASIC inspection and list of escrowed repairs so if cash is tight, you can skip a home inspection, and have some BASIC insight of the home's condition saving you another $250-$400.

      So on top of the sub 4% interest rates & record low home prices, you can still get down payment assistance.  The down payment was usually the main inhibitor (along with credit scores) delaying people from buying homes.  While putting down 20%  is more favorable in the long run, it can be a staggering number once you add it up on the home of your dreams but now, it doesn't have to be.