Down payment help, not a grant

A deferred second mortgage, not a grant

Georgia Dream is the state's down payment help for first-time buyers. It is a second mortgage at 0 percent with no monthly payment. You repay the full balance when you sell, refinance, or move out. There is no forgiveness clause.

Standard gives up to $10,000 or 5 percent of the price. The PEN tier for public-service workers and the CHOICE tier for disability households each give up to $12,500.

‍

How it works and who qualifies

• First-time buyer, none owned in 3 years
• 640 minimum credit score
• Income under $130,290 for 1-2 people
• Income under $149,833 for 3 or more
• Purchase price under $550,000 in metro
• $20,000 liquid asset cap applies
• Layers on FHA, VA, or conventional
• 8-hour HUD class before you close
• One tier per purchase, mutually exclusive

‍

What this means in Clayton

The pitfall most buyers miss is the refinance trigger. Refinancing the first mortgage later repays the full Georgia Dream balance at closing unless DCA grants a subordination, which is uncommon.

Most of my Riverdale buyers stack Georgia Dream with the Clayton County DPA on an FHA first. A PEN buyer with Clayton Enhanced reaches $22,500 in total assistance.

‍

This is not a grant and it is not free money. It is a real second mortgage at zero percent, and you owe every dollar back.