Georgia Dream Homeownership Program - Credit Scores

First Time Homebuyers - Down Payment Assistance - Georgia Dream Homeownership Program

Another change in the Georgia Dream Homeownership Program that went into affect on March 1, 2011, is credit scores are looked at on a two tiered approach.  The credit score and debt to income (DTI) are paired to each other in the guidelines Department of Community Affairs have set for Georgia Dream Homeownership Program.  Lenders approved by the Department of Community Affairs for the Georgia Dream Homeownership Program should look at all three major scores and use the middle score for compliance with the guidelines.

For middle credit scores that range between 620 and 639, Georgia Dream requires that the DTI be a maximum 35%.  So if your monthly household income is $2000, the maximum amount of debt payments you can have is $700.

For middle credit scores that are 640 or above, Georgia Dream requires that the DTI be a maximum of 40% for debts not including the mortgage and 45% for all monthly debt that includes the monthly mortgage amount.  For example if your monthly income is $4000, your maximum monthly debt including your mortgage is limited to $1800.

The Department of Community Affairs is very strict in adhering to these guidelines for the Georgia Dream Homeownership Program.  For more information, please visit www.dcaloans.com.

If you are a first time home buyer looking for down payment assistance or help with buying a home in the metro Atlanta area, please give our office a call at 404 923 4210 or 404 246 3210.  Thank you!