Georgia Dream Homebuyer Assistance Programs

For many Georgians, the biggest obstacle to buying a home isn't qualifying for a mortgage. It's saving enough money for the down payment and closing costs.

The Georgia Department of Community Affairs (DCA) offers the Georgia Dream Homeownership Program, which helps eligible homebuyers purchase a home through participating lenders. Depending on the program, borrowers may qualify for down payment assistance, competitive mortgage options, and specialized loan programs.

What Is Georgia Dream?

Georgia Dream is a collection of mortgage programs administered by the Georgia Department of Community Affairs. Rather than lending directly to homebuyers, the program works through approved lenders across Georgia.

Current programs include:

• Georgia Dream – Primarily for eligible first-time homebuyers and buyers purchasing in designated target areas.
• Peach Plus – Designed for eligible FHA and VA borrowers who exceed Georgia Dream's income or purchase price limits.
• Peach Select VA – Available to eligible military veterans.
• Peach Advantage – A conventional mortgage option that includes down payment assistance for qualified borrowers.

Each program has its own eligibility requirements, income limits, and financing guidelines.

Down Payment Assistance

One of the program's biggest benefits is down payment assistance.

Eligible borrowers may receive:

• Up to $10,000 through the Standard Down Payment Assistance program.
• Up to $12,500 for eligible Protectors, Educators, Nurses (PEN), healthcare workers, active military members, and households that include a person living with a disability.

It's important to understand that this assistance is not a grant. The funds are provided as a 0% interest, deferred second mortgage with no monthly payments. The balance generally becomes due if you sell the home, refinance your first mortgage, or no longer use the home as your primary residence.

Credit Requirements

Georgia Dream generally requires borrowers using automated underwriting to have a minimum middle credit score of 640. Some loan types may require higher scores, while certain borrowers without traditional credit histories may qualify through manual underwriting.

Meeting the minimum credit score does not automatically qualify a person for a mortgage. Lenders also consider income, employment, debt-to-income ratio, available assets, and the property's eligibility.

What Else Should Buyers Know?

There are a few requirements that often surprise first-time homebuyers.

Homebuyer education is required. Before closing, borrowers must complete an approved homebuyer education course through a HUD-approved housing counseling agency or an approved online provider.

You must still contribute some money. Georgia Dream generally requires borrowers to contribute at least $1,000 of their own funds (or eligible gift funds) toward the purchase. Buyers should also budget for expenses such as earnest money, inspections, and appraisals.

Asset limits apply. Because the program is designed to help households that need financial assistance, borrower liquid assets generally cannot exceed $20,000 or 20% of the home purchase price, whichever is greater.

Plan for a longer closing process. Georgia Dream loans require an additional compliance review by the Department of Community Affairs. As a result, buyers should expect the process to take approximately 60 days from contract to closing. When submitting an offer, buyers and their real estate agents should keep this extended timeline in mind.

Sources: Georgia Department of Community Affairs, Georgia Dream Mortgage Products, Participating Lender and Program Guidelines