How Much Money Can I Get in Georgia First Time Home Buyer Funds?

A number of examples appear here on this blog regarding the Georgia First Time Home Buyer program, but they all say "Up to $20,000." What exactly does that mean? Today's blog entry will try to explain some of the scenarios that may make a person eligible to obtain financing underwritten by the State of Georgia's First Time Home Buyer Assistance Program and the possible dollar amounts.

First, please know that there are two benefits available to qualifying borrowers under this program. The first benefit is a highly competitive fixed interest rate on a 30 year first mortgage and very low closing costs on mortgages at up 100% loan-to-value (yes, they do still exist). Please call for the current interest rate. To qualify for this program, the buyer...

1. Must have a minimum credit score of 620
2. May not have owned a home in the previous three years
3. Must occupy the home
4. Must agree to attend a home buyer workshop
5. Must buy a home priced at or below $250,000

The second benefit is the Georgia Down Payment Assistance benefit which is a second mortgage loan that accrues no interest nor requires any monthly payments. In fact, no payment is due at all until the home is sold, refinanced or is no longer used as the borrower's primary residence.

The rules above apply to this benefit too. In addition, the Georgia Down Payment Assistance benefit must be used along with the first mortgage described above. Further, the borrower must contribute $500 toward the transaction. Buyers are also encouraged to obtain an optional home inspection which may cost around $325, so their total contribution toward the transaction is often around $825.00. Sellers of bank owned properties (foreclosures), however, require an earnest money deposit of at least $1,000 and also strongly encourage buyers to obtain an optional inspection. At closing, the earnest money is credited toward the borrower's expenses.

So how does one qualify for the Georgia Down Payment Assistance Program? Again, the rules described above apply, but there are income guidelines too.

1. A single person household may not earn more than $39,850
2. A two-person household may not earn more than $45,550
3. A three-person household may not earn more than $51,250
4. A four-person household may not earn more than $56,950

In general, persons or households falling within these guidelines may be eligible to obtain a Georgia Down Payment Assistance second mortgage of up $5,000. Those employed in the five branches of the military, law enforcement, education, the fire department or healthcare may be eligible to obtain $7,500. Veterans of the War on Terror or survivors of spouses who died in service to our country may be eligible to obtain a second mortgage of $10,000. A second mortgage up to $20,000 may be available to families with disabled members based on annual household incomes.

Households with disabled members and an annual income of $30,000 or more may qualify for a second mortgage of $7,500. Households with annual incomes $20,000-$29,999 may qualify for a second mortgage of $15,000. Finally, households with disabled members and an annual household income of less than $20,000 may be eligible for a second mortgage of $20,000.

This program is underwritten by the State of Georgia. My next entry may discuss other local first time home buyer programs that can be combined with the Georgia Down Payment Assistance programs.

For more information, please call me today at (678) 775-2677 or visit http://www.TheAtlantaHomePages.com.