Georgia Dream Standard Program Explained

The Georgia Dream Standard program combines a 30-year fixed-rate first mortgage with optional down payment assistance for eligible Georgia homebuyers.

Standard down payment assistance is currently equal to 5% of the home's purchase price, up to a maximum of $10,000. The assistance is provided as a 0% interest second mortgage with no monthly payment and is repaid later when certain events occur, such as selling or refinancing the home.

Georgia Dream Standard can work with FHA, VA, USDA, or conventional financing, depending on the buyer's eligibility.

Eligible Standard borrowers may receive:

5% of the purchase price, up to $10,000, whichever is less.

Here's a simple example.

If you're purchasing a $200,000 home, 5% equals $10,000, so you could potentially receive the full $10,000 Standard assistance amount.

If you're purchasing a $150,000 home, 5% equals $7,500, so the Standard assistance would be limited to $7,500.

The amount available isn't necessarily the same as the amount you'll need. Your mortgage type, seller contributions, available funds, closing costs, and other factors all affect how the transaction is structured.

One thing that sometimes causes confusion is that Georgia Dream Standard isn't a replacement for FHA, VA, USDA, or conventional financing.

Instead, Georgia Dream works with those mortgage options.

Depending on your eligibility, your first mortgage may be:

• FHA
• VA
• USDA
• Conventional

You don't need to become an expert on how those pieces fit together. That's something we determine during the loan process based on your eligibility, budget, and goals.

The important thing to know is that using Georgia Dream doesn't automatically mean you're using one particular type of mortgage.

Georgia Dream currently requires a minimum credit score of 640 for most borrowers with a credit score.

Credit score isn't the only factor used to determine eligibility. Your debt, income, payment history, mortgage type, and automated underwriting results also matter.

This is another reason I recommend looking at Georgia Dream before you're ready to make an offer. If something needs attention, it's much easier to address it before you've found the house you want to buy.

Yes. Georgia Dream Standard also includes a liquid asset limitation.

Certain checking, savings, stocks, bonds, and other readily available funds may be considered when determining eligibility, while qualified retirement accounts such as many 401(k)s and IRAs are treated differently.

This doesn't mean you can't have savings.

It means Georgia Dream is intended to direct assistance toward buyers who meet the program's financial guidelines. Your lender should review your assets early and determine what does and does not count under the current rules.

Georgia Dream Standard is for a primary residence.

Eligible properties may include certain:

• Single-family detached homes
• Attached homes
• Approved condominiums

Some property types aren't eligible under the Standard program, including two-to-four-unit properties. Property eligibility can also depend on the underlying loan program.

There are additional requirements that can apply to properties with private wells, septic systems, condominiums, and other circumstances.

If you're considering a property that's a little unusual, it's worth checking eligibility before you get too far into the offer process.

Yes.

Georgia Dream requires homebuyer education through an approved housing counseling provider.

In my experience, this is usually something we have buyers complete after they're under contract while the mortgage is moving through the approval process.

The important thing is that it must be completed before closing.

It can.

Your lender first completes the normal mortgage underwriting process. Once lender approval is complete, the file is also submitted to the Georgia Department of Community Affairs for its compliance review and funding approval.

That additional review is one reason I don't like to promise a 30-day closing on every Georgia Dream transaction.

Many purchases may still close within a normal market timeframe, but the actual timing depends on the completeness of the file, DCA's current review volume, appraisal and title work, holidays, and other pieces of the transaction.

Starting early and submitting a clean file helps us control the parts of the process we can control.

Is Georgia Dream Standard only for first-time buyers?

Primarily, yes. Georgia Dream generally considers you a first-time homebuyer if you haven't owned and occupied a primary residence during the previous three years. Exceptions may apply for targeted areas and certain eligible veterans.

Is the $10,000 assistance guaranteed?

No. Standard assistance is 5% of the purchase price up to a maximum of $10,000, and the buyer must meet Georgia Dream and mortgage eligibility requirements.

Is Georgia Dream Standard assistance a grant?

No. It's a 0% interest deferred second mortgage with no monthly payment. It generally must be repaid when you sell, refinance, transfer the property, or no longer occupy the home as your primary residence.

Can I get the Georgia Dream interest rate and down payment assistance together?

Yes. The Georgia Dream Standard first-mortgage rate is available with or without the program's down payment assistance, subject to eligibility and current program guidelines.

Can I use Georgia Dream Standard with an FHA loan?

Yes. Georgia Dream Standard may be used with eligible FHA financing.

Can I use it with a VA or USDA loan?

Yes. Georgia Dream Standard can also work with qualifying VA and USDA financing.

Do I need perfect credit?

No. Georgia Dream currently requires a minimum credit score of 640 for borrowers with a credit score, but the complete loan still has to meet applicable underwriting and program requirements.

Does Georgia Dream look at everyone's income?

Georgia Dream uses household income rules, so income from certain adults who will live in the home may need to be included even if they're not borrowers on the mortgage.

You don't need to figure out every Georgia Dream rule before asking for help.

If you're wondering whether Standard, Peach Advantage, Peach Plus, or another financing option fits your situation, we can start with your goals, household income, budget, and timeline and work from there.

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Georgia Dream Standard is the foundation of Georgia's traditional homebuyer assistance program.

For an eligible buyer, it can combine a Georgia Dream first-mortgage rate with assistance toward the upfront costs that often make buying a home difficult.

The key is determining whether the program fits your situation early.

If it does, good preparation can make the process much easier. If it doesn't, understanding that before you start shopping gives us time to look at other financing options that may be a better fit.