FHA loan (203b)

The most common first mortgage here

The path most first-time buyers take: 3.5 percent down with a 580 score. I will walk you through the mortgage-insurance tradeoff before you commit.

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The most common first mortgage here

The FHA loan in Clayton County GA is the path most first-time buyers take. It is a HUD-insured first mortgage at 3.5 percent down with a 580 credit score. There is no income cap on the loan itself, though the assistance you stack on top does.

The tradeoff is mortgage insurance: 1.75 percent upfront plus 0.55 to 0.85 percent a year. Under 10 percent down, that annual MIP stays for the life of the loan.

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How it works and who qualifies

3.5% down at a 580 credit score
10% down if your score is 500 to 579
No federal income cap on the loan
2026 Clayton 1-unit limit is $718,750
Upfront MIP is 1.75% of the loan
Annual MIP runs 0.55% to 0.85%
Primary residence, occupy in 60 days
Stacks with Georgia Dream and Clayton DPA
8-hour HUD class if you stack DPA

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What this means in Clayton

Stacked with Georgia Dream and the Clayton County DPA on a $220,000 Riverdale home, your cash to close drops from about $15,000 to roughly $1,000 to $2,000. The monthly payment is the same.

Above 720 credit, conventional often beats FHA because its PMI cancels and FHA's does not. I run both for any buyer over 700.

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