More help for the folks who protect, teach, and heal

A deferred second mortgage, not a grant

PEN is the Protectors, Educators, and Nurses tier of Georgia Dream, the state's down payment help for first-time buyers. Like every Georgia Dream tier, 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, but there is no interest and nothing due month to month either.

Where the standard tier gives up to $10,000 or 5 percent of the price, PEN raises that to up to $12,500, or 6 percent, whichever is less. It is open to full-time public protectors like police, firefighters, EMTs, and correctional officers, plus active and retired military, certified educators and school staff, and licensed nurses and healthcare providers.

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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

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What this means in Clayton

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

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

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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.