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HL1Housing Living 101

Down Payment Assistance Programs Available in Georgia

By Tanika Patel
8 minute read

What Down Payment Help Exists in Georgia

Georgia offers down payment assistance through state programs, local housing authorities, and nonprofit lenders—but they are not all the same, and not all are open at the same time. The Georgia Housing and Finance Authority (GHFA) runs the primary state program, which covers down payment and closing costs for first-time buyers. Some Georgia counties and cities run their own programs with different income limits and property price caps. Nonprofits like NeighborWorks and community development financial institutions (CDFIs) also offer down payment help, often with lower credit score requirements than traditional lenders.

The amount you can receive varies by program. State programs typically cover 3 to 5 percent of the purchase price, though some cover up to 10 percent. Local programs are smaller—often $5,000 to $15,000—but may have fewer restrictions. Most programs require you to complete a homebuyer education course, which usually takes one evening or a few hours online. The course is free or low-cost and teaches you how mortgages work, what to expect at closing, and how to manage a home budget.

Key Takeaways

  • Georgia Housing and Finance Authority (GHFA) is the main state program and covers down payment and closing costs for first-time buyers with income below certain limits that vary by county.
  • You must complete a homebuyer education course before you can receive assistance, and most programs require you to work with an approved lender.
  • Local housing authorities and nonprofits like NeighborWorks often have lower credit score requirements and smaller loan amounts than state programs.
  • The property must be in Georgia, you must occupy it as your primary home, and you cannot have owned a home in the past three years to may have access to as a first-time buyer.
  • Down payment assistance is a loan you repay, not a grant—though some programs forgive the loan if you stay in the home for a set number of years.

Georgia Housing and Finance Authority (GHFA) Program

The GHFA administers the state's largest down payment assistance program through its HomeFirst program. It covers down payment and closing costs for first-time homebuyers with household income at or below 80 percent of the area median income (AMI). The income limit depends on which Georgia county you are buying in—for example, the limit is higher in Atlanta than in rural counties. You can find your county's income limit on the GHFA website.

The loan amount is typically 3 to 5 percent of the purchase price, though some borrowers can receive up to 10 percent. The assistance is a second mortgage, meaning you take out a regular mortgage from a bank and a smaller loan from GHFA for the down payment. You repay both loans, but the GHFA loan often has a lower interest rate and longer term than a traditional down payment loan. Some GHFA programs forgive the loan after you have owned and occupied the home for 10 years.

To use GHFA assistance, you must work with a lender that GHFA has approved. Not all banks participate, so you will need to ask your lender whether they work with GHFA or find one that does. You must also complete a homebuyer education course certified by HUD (the U.S. Department of Housing and Urban Development). GHFA maintains a list of approved courses on its website, and many are free.

Local and County Programs in Georgia

Many Georgia cities and counties run their own down payment assistance programs separate from the state program. These are often smaller in dollar amount but may have fewer restrictions or lower credit score requirements. For example, some local programs do not require a homebuyer education course, or they allow buyers with credit scores below 620, which most state and bank programs do not.

To find out whether your city or county has a program, contact your local housing authority or community development office. You can also call 211 (a free referral line) and ask for down payment assistance in your area. Local programs change frequently—some open and close based on funding—so calling is faster than searching online. If your county does not have its own program, you can use the state GHFA program instead.

Nonprofit and CDFI Down Payment Assistance

Community development financial institutions (CDFIs) and nonprofits like NeighborWorks offer down payment assistance in Georgia, often with more flexible credit and income requirements than banks or state programs. These lenders are designed to serve borrowers who have lower credit scores, less savings, or irregular income. Some offer down payment loans with no interest, or interest rates lower than traditional lenders.

The trade-off is that nonprofit programs often have smaller loan amounts—typically $5,000 to $15,000—and may require you to complete financial counseling or a homebuyer course. Some nonprofits also require you to buy the home in a specific neighborhood or area they serve. To find a CDFI or nonprofit lender in Georgia, search the CDFI Fund directory on the U.S. Treasury website, or ask your local housing authority for referrals.

Income Limits, Credit Requirements, and Other Rules

Most Georgia down payment assistance programs require your household income to be at or below 80 percent of the area median income (AMI) for your county. This limit changes every year and varies widely—in some rural counties it may be $50,000, while in Atlanta it may be $75,000 or higher. You can find your county's current limit on the GHFA website or by calling your local housing authority.

Credit score requirements also vary. State programs typically require a score of 620 or higher, though some require 640 or 660. Nonprofit and CDFI programs often accept scores as low as 580 or 600. If your score is below 620, ask about local programs or nonprofits before assuming you cannot may have access to. You must also have a signed purchase agreement or be pre-approved for a mortgage before you can receive down payment assistance—programs do not give you money to shop for a home.

The property must be in Georgia, and you must occupy it as your primary residence (not a rental or investment property). Most programs define a first-time homebuyer as someone who has not owned a home in the past three years. If you are buying with a spouse or partner, both of you must meet the income and credit requirements.

How to Start: Steps and Timeline

The first step is to get pre-approved for a mortgage from a bank or lender. This tells you how much you can borrow and shows sellers you are serious. During pre-approval, ask your lender whether they work with GHFA or other down payment assistance programs. If they do not, you may need to switch lenders or look into local programs instead.

Next, complete a homebuyer education course if the program requires one. Most courses take four to eight hours and cover budgeting, the mortgage process, home maintenance, and what to expect at closing. Many are free and offered online or in person by nonprofits, housing authorities, and community colleges. You will receive a certificate when you finish, which you will need to submit with your down payment assistance request.

Once you have a signed purchase agreement and a certificate of completion, contact the down payment assistance program directly or ask your lender to submit the request on your behalf. The program will verify your income, credit, and employment, and will order an appraisal of the home. Approval typically takes two to four weeks. After approval, the program funds the down payment loan, which is recorded as a second mortgage on the property. You close on both mortgages at the same time.

What Happens If You Move or Sell

If you sell the home before the down payment loan is paid off, you must repay the remaining balance from the sale proceeds. For example, if you received a $20,000 down payment loan and sell the home five years later with $15,000 still owed, the $15,000 comes out of your sale price before you receive your profit. Some programs forgive the loan if you stay in the home for a set period (often 10 years), so check your loan documents to see whether forgiveness applies to you.

If you refinance your mortgage, the down payment assistance loan typically stays in place as a second mortgage. You cannot roll it into the new first mortgage, but you can pay it off early without penalty. Refinancing does not affect your down payment loan balance or forgiveness terms.

Frequently Asked Questions

Do I have to repay down payment assistance?

Yes, down payment assistance is a loan, not a grant. You repay it over time, usually 10 to 30 years depending on the program. However, some programs forgive the loan if you stay in the home for a certain number of years (often 10). Check your loan documents or ask the program whether forgiveness applies to you.

What if my lender does not work with GHFA?

Ask your lender to find out whether they can participate or refer you to a lender that does. If they cannot, contact your local housing authority or call 211 to learn about local programs or nonprofits in your area. You may also be able to switch lenders without losing your pre-approval.

Can I use down payment assistance if I have bad credit?

State programs typically require a credit score of 620 or higher, but local programs and nonprofits often accept scores as low as 580 or 600. Call your local housing authority or search the CDFI Fund directory to find lenders with more flexible requirements. You may also improve your score by paying down debt or correcting errors on your credit report before you apply.

How long does the whole process take?

From pre-approval to closing usually takes 30 to 45 days. The homebuyer education course takes one to two weeks to complete. Down payment assistance approval adds two to four weeks. If you are buying a home that needs inspection or appraisal, the timeline may be longer. Start the process as soon as you know you want to buy.

Can I use down payment assistance to buy a home outside Georgia?

No, state programs require the property to be in Georgia. If you are moving out of state, you may be able to use down payment assistance from the state you are moving to. Contact the housing finance agency in that state to learn what programs are available.