First-Time Homebuyer Programs in Georgia

The down payment on a new home is often the biggest hurdle for first-time homebuyers. In Georgia, where the average home value is $328,526, you would need a down payment of $65,705 to avoid private mortgage insurance.

Fortunately, there are first-time homebuyer programs available in Georgia to help you achieve homeownership. There are also mortgages that allow first-time homebuyers to put less down on a home, but these usually have income requirements and require mortgage insurance. MoneyGeek explores several state-specific and government-backed first-time homebuyer programs for people from different financial backgrounds.

Georgia offers grants and loans to assist first-time homebuyers with down payment and closing costs. We have compiled the first-time homebuyer programs offered by the Georgia Department of Community Affairs (GDCA) to help you find the best option for your needs and situation.

The Georgia Dream Loan Program helps eligible first-time and repeat homebuyers by offering affordable 30-year fixed-rate mortgages. The program also provides down payment assistance to help cover upfront costs, offering assistance amounts that vary depending on the borrower's needs and eligibility criteria. These down payment assistance options include:

• Standard Assistance: Up to 5% of the home purchase price, capped at $7,500, available for most eligible homebuyers.
• PEN (Protectors, Educators, Nurses): Up to 5% of the home purchase price, with a maximum of $10,000, offered to military, teachers, first responders and health care workers.
• CHOICE (Individuals with Disabilities): Up to 5% of the home purchase price, capped at $12,500, provided to individuals with disabilities or those caring for a family member with a disability.

The Peach Plus Loan Program expands access to affordable homeownership for borrowers who do not meet the traditional Georgia Dream program criteria. It provides fixed-rate mortgages with down payment assistance for FHA-qualified borrowers. This program is designed to support a wider range of homebuyers and offers several down payment assistance options depending on the buyer’s needs and household situation, such as:

• Standard Assistance: This option provides 3.5% of the home’s purchase price, with a maximum of $10,000 to help with down payment and closing costs.
• PEN (Protectors, Educators, Nurses): It offers 4% of the home’s purchase price, up to $12,500, specifically for teachers, health care workers and first responders.
• Choice Assistance: This assistance delivers 4% of the home’s purchase price, also capped at $12,500, for households with disabilities or those caring for a family member with a disability.

The Peach Select Veterans Assistance Loan Program offers affordable 30-year fixed-rate mortgages specifically for eligible veterans in Georgia. This program allows veterans to access VA loans through Georgia Dream's network of participating lenders, ensuring lower interest rates and competitive loan terms. It also offers a streamlined mortgage process and flexible financing options for veterans, including those looking to purchase single-family homes or eligible properties in Georgia.

Aside from statewide first-time homebuyer programs in Georgia, city-specific programs are also available to help you pursue homeownership in a city of your choosing. Check out the table below for some of the cities in Georgia that provide first-time homebuyer programs for potential residents.

In Georgia, there are zero-down-payment loan programs that allow you to purchase a home without putting money down. USDA and VA loans are two government-backed options that provide this benefit.

USDA loans are designed to assist low-to-moderate-income homebuyers in rural areas. They are issued by the U.S. Department of Agriculture through its Rural Development Guaranteed Housing Loan program. This initiative aims to make homeownership more accessible for those who might not qualify for traditional loans.

USDA loans offer several advantages, including the possibility of purchasing a home with no down payment. They also provide competitive interest rates and reduced mortgage insurance costs, making them an attractive option for eligible buyers. These loans are specifically available for properties in designated rural areas, which helps stimulate economic growth in these communities.

To qualify for a USDA loan, your property must be 2,000 square feet or below and located in a USDA-eligible rural area with a population under 35,000. You must also meet certain income limits, which vary based on your location. For example, a four-person household in Atkinson County, Georgia, has an income limit of $56,400, while in Gilmer County, Georgia, the limit is $63,450.

VA loans are a benefit offered by the U.S. Department of Veterans Affairs to help veterans, active-duty service members and eligible surviving spouses become homeowners. These loans provide an opportunity for those who have served to access home financing options that might otherwise be out of reach.

VA loans offer several advantages that make them an attractive option for eligible borrowers. One of the standout features is the no-down-payment requirement, which can significantly reduce the upfront cost of purchasing a home. VA loans also do not require private mortgage insurance (PMI), which can save borrowers money over the life of the loan. These loans tend to have lower interest rates than private loans. As of November 2024, the APR for a 15-year fixed-rate VA loan in Georgia is 6.11%, while for a 30-year fixed-rate VA loan, it is 6.31%.

To qualify for a VA loan, you must meet specific eligibility requirements. These include your length of service or service commitment, duty status and character of service. You must meet certain income limits based on where you live. A valid Certificate of Eligibility (COE) is also required to proceed with the loan application process.

First-time homebuyers in Georgia can take advantage of low-down-payment loan programs that allow them to finance their home with a down payment of 3.5% or less. These programs include conventional, FHA and FHA 203(k) loans.

FHA loans and conventional loans are often compared as they are the two most common types of mortgages. FHA loans require a minimum down payment of 3.5%, while conventional loans may require as low as 3% for first-time homebuyers. Conventional loans typically have stricter credit score and debt-to-income ratio requirements, making FHA loans a more accessible option for those with lower credit scores.

As of November 2024, the APR for a 15-year fixed-rate conforming loan in Georgia is 6.00%, compared to 6.95% for a 15-year fixed-rate FHA loan. APRs on FHA loans can be higher due to the additional fees and costs associated with government-backed loans.

You can use our FHA vs. conventional loan calculator below to help you compare FHA and conventional mortgage programs and determine the best option for you.

We have addressed frequently asked questions about first-time homebuyer programs in Georgia to help you identify the best option and move closer to homeownership.

Explore additional MoneyGeek resources for first-time homebuyers in Georgia to help you with the homebuying process.