Georgia Dream Loan Program

The Georgia Department of Community Affairs (DCA) acts as the secondary market for lenders who want to provide an affordable mortgage product to low and moderate income Georgians.  Potential home buyers apply with participating lenders for Georgia Dream loans.  The loans are secured or guaranteed by FHA, VA, USDA-RD or conventional uninsured loans.  Once the lender has completed the process and gives credit approval, the information is forwarded to DCA for compliance review and funding approval.  Georgia Dream rates are available from your participating lender.

An entire county or a census tract in which at least seventy percent (70%) of the families have a Household Annual Income that is eighty percent (80%) or less of the state-wide median family income, or an area designated by the State as an area of chronic economic distress and approved by the Secretary of the U.S. Department of Housing and Urban Development and the Secretary of the U. S. Department of Treasury.

An eligible applicant does not have to be a first time home buyer if they purchase in a targeted area.  To check if you are in a targeted area, see page 5 of the Georgia Dream brochure for a map of Targeted Counties.  Check with a participating lender for a list of targeted census tracts.  An eligible applicant purchasing in a targeted area may not own any other real estate, and may not be on title of any other real estate at the time of closing on the Georgia Dream loan.

The average Georgia Dream process takes about 60 days from application to closing.  A delay may occur if the applicant does not provide the documentation necessary for the lender to complete the application and process the loan.  Many lenders may complete the process with a shorter timeframe.

a.  Contact a participating lender to be prequalified.  If you qualify, you can start your home search process.

b.  Take a home buyer education class.  Georgia Dream requries all applicants to attend Housing Counseling classes, workshops, or one-on-one counseling that is provided by HUD-approved Housing Counseling Agencies.  Applicants must contact and attend a class with one of the Housing Counseling agencies on DCA's website or HUD's website or applicants may complete the online class at http://www.ehomeamerica.org/dca. The charge for these classes can range from $50 to $100.

The maximum income varies by county and by the size of your household.  See page 2 of the Georgia Dream brochure.   For the Georgia Dream program, "income" means the total income of all household members.  However, some income may not be included.  For example, the income of students under the age of 18 is not included.  Discuss your total household income with your lender.

DCA sets the interest rate for all Georgia Dream loans.  A participating lender must use the Georgia Dream rate and approved fees.  No uncommon fees or discount points are allowed on Georgia Dream loans.  The lender reserves the rate electronically and the rate is locked for 75 days. (We typically change the rates weekly but reserve the right to change the rate more often.)

The applicant must contribute a minimum of $1,000 of their own money or documented gift funds into the purchase transaction in order to receive the down payment assistance.  There may be additional costs associated with the purchase of your home that will be your responsibility.

Yes.  The down payment assistance is a 0% interest loan with no monthly payment.  A second mortgage lien is placed on your property.  It is due when you sell, refinance or no longer occupy the home as your primary residence.  When funds are paid back we use the money to help the next generation of applicants start the process.  The Georgia Department of Community Affairs may offer other down payment assistance programs that could have different requirements regarding repayment of the down payment assistance.  Information regarding other programs will be on the Georgia Dream website.