First-time home buyer programs in Georgia: assistance, loans and real costs
Georgia Dream is unusual in pairing a flat-dollar DPA with an asset test: buyers with more than a set amount of liquid savings are ineligible, so timing large gifts matters. That is the one sentence to keep in mind while reading the programs below.
| State housing agency | Georgia Department of Community Affairs / Georgia Housing and Finance Authority |
|---|---|
| Median home price (approx.) | $330,000 — statewide order of magnitude; metros differ |
| 3.5% / 5% / 20% down | $11,550 / $16,500 / $66,000 on the median |
| Property tax (effective) | about 0.87% — roughly $2,871 a year on the median |
| Mortgage credit certificate | Not consistently offered — ask a lender |
| Transfer tax | Georgia’s real estate transfer tax is $1 per $1,000 (0.1%), customarily paid by the seller, plus an intangible recording tax of $1.50 per $500 of the loan amount (0.3%) that the borrower usually pays. |
Georgia’s first-time buyer programs
The Georgia Dream Homeownership Program, run by the Department of Community Affairs, offers 30-year fixed FHA, VA, USDA and conventional loans to first-time buyers (and repeat buyers in targeted areas) with down payment assistance; the Peach Plus option extends eligibility to buyers above the standard income limits.
How the assistance money works
Georgia Dream’s standard assistance is a 0% deferred second mortgage of $10,000; the PEN option (public protectors, educators, health care workers, active military) raises it to $12,500, and CHOICE (households with a member with a disability) to $15,000. The second is repaid on sale, refinance or payoff.
A second-lien assistance loan has consequences at refinance — it usually must be repaid or subordinated — and a forgivable one repaid early loses its forgiveness. Plan the holding period accordingly. See how down payment assistance programs work.
Mortgage credit certificate (tax credit)
Georgia does not currently operate a statewide Mortgage Credit Certificate program; a few local housing authorities have issued MCCs in the past, so ask a Georgia Dream lender.
Who qualifies: income, price and credit limits
Georgia Dream income limits vary by county grouping and household size and purchase price limits apply statewide (higher in the Atlanta metro); buyers need a 640 minimum credit score, liquid assets below a cap, a $1,000 minimum contribution and homebuyer education.
The cost of closing in Georgia
Georgia’s real estate transfer tax is $1 per $1,000 (0.1%), customarily paid by the seller, plus an intangible recording tax of $1.50 per $500 of the loan amount (0.3%) that the borrower usually pays.
Georgia closings are conducted by attorneys; buyer costs — intangible tax, attorney, title insurance, lender fees — typically total 2% to 3% of the price. Our guide to closing costs explains each line of the Loan Estimate and which fees you can shop.
What the payment looks like on a $330,000 home
Worked on Georgia’s rough $330,000 median (your county may be far above or below) at an illustrative 6.5%: down payment, loan amount, principal and interest, and the monthly share of property tax at the state’s approximate 0.87% effective rate, or about $2,871 a year. Exclude nothing else from your own budget — insurance, PMI, HOA dues all apply.
| Structure | Down payment | Loan amount | P&I at 6.5% (30 yr) | Property tax / mo (est.) |
|---|---|---|---|---|
| FHA, 3.5% down | $11,550 | $318,450 | $2,013 | $239 |
| Conventional, 5% down | $16,500 | $313,500 | $1,982 | $239 |
| Conventional, 20% down (no PMI) | $66,000 | $264,000 | $1,669 | $239 |
Illustrative rate and approximate state figures — not an offer or a quote. Full payment tables cover $150,000 to $800,000 at 5% to 8%; the affordability guide explains how lenders size the loan.
Frequently asked questions
Does Georgia have down payment assistance for first-time buyers?
Georgia Dream’s standard assistance is a 0% deferred second mortgage of $10,000; the PEN option (public protectors, educators, health care workers, active military) raises it to $12,500, and CHOICE (households with a member with a disability) to $15,000. The agency publishes the current limits and amounts; a lender approved for the program will know them.
Is there a first-time home buyer tax credit in Georgia?
Georgia does not currently operate a statewide Mortgage Credit Certificate program; a few local housing authorities have issued MCCs in the past, so ask a Georgia Dream lender. The credit is worth a percentage of the mortgage interest you pay each year, up to a federal cap, and can be combined with many first-mortgage programs.
What are typical closing costs when buying a house in Georgia?
Georgia closings are conducted by attorneys; buyer costs — intangible tax, attorney, title insurance, lender fees — typically total 2% to 3% of the price. Georgia’s real estate transfer tax is $1 per $1,000 (0.1%), customarily paid by the seller, plus an intangible recording tax of $1.50 per $500 of the loan amount (0.3%) that the borrower usually pays.
Related guides
- Twelve first-time home buyer mistakes — and the cheap fix for each
- Earnest money explained: how much, who holds it, and how you lose it
- Appraisal gap: what happens when the home appraises below your offer
- Down payment assistance programs: how they work and how to find yours
Also for this state: hard money rules in Georgia · foreclosure in Georgia.