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The “Georgia Dream”

By
Real Estate Agent with Associate Broker at Berkshire Hathaway Home Services Georgia Properties 256152

In my last article I mentioned four programs that can benefit many home buyers. I received several calls about one program that offers a $14,000 forgivable loan program which is called the Georgia Dream Home Ownership Program, also known as the Neighborhood Stabilization Program, and referred to as NSP Loan. I thought it might be helpful to explain it in detail. Although it's long, more information is available at www.dca.state.ga.us/housing/Homeownership/programs/gadreamnspdownpayment.asp 

This program is designed to help clear the market of all the foreclosed properties we are enduring in real estate, which will stabilize prices, keep neighborhoods from becoming an eyesore because of vacant homes, and assist home buyers who want to get into a first home or possibly move up. It is available through the Georgia Department of Community Affairs (DCA). 

The $14,000 must be used for repairs or down payment only. It cannot be used for closing costs, discount points, or prepaid items such as HOA fees or insurance. It is not available for mobile homes. All purchased properties must be for foreclosures that are vacant. The income limit varies, but is as little as $68,350 for two people, and $85,450 for a family of four in Pickens County. 

The money may be used in conjunction with FHA or VA first mortgages. The final sales price of the property must be at least 15% below the fair market value, which requires an appraisal prior to finalizing the contract. A second appraisal is then required by the lender. The property must be inspected by a DCA approved inspector. 

The loan, which is actually a second mortgage, is forgiven over 5.5 years at a rate of 20% per year. Borrowers can sell or refinance by paying off the balance before then, but if the home is rented the entire balance must be repaid. A home buyer education training session, which is an eight hour course, must be attended prior to closing.

 This program IS NOT exclusively for first time buyers, and the tax credits recently enacted can still be claimed. That means first time buyers can potentially get paid $23,800 for buying a home! 

Both the real estate agent and the loan officer must take a DCA training course to be eligible to offer the program to the public. Make certain if you are approached by someone about this program that the training requirements have been satisfied.  

Ron Barnes can be reached at 678-520-6648. Prudential Georgia Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential FinancialCompany. Equal Housing Opportunity. Statistics are taken from Trendgraphics.

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