Did you know you can buy a house for $1000?
That’s right. If you and the house qualify, the Georgia Dream Homeownership Program will help you buy a house for only $1000.00 down. The program will get you a first mortgage, including a 30-year, fixed-rate loan and provide $5,000 for down payment assistance to all eligible applicants towards the purchase. $7,500 is available for people working in the healthcare, protection, military, or education fields (PEN program) or who have a disability (CHOICE program).
To be eligible:
- You must not have owned a home in the last 3 years or be buying a home in a targeted area (mostly south Georgia counties but in some areas of other counties)
- The sales price of the home must be $250,000 or less in most of the north Atlanta counties.
- You must meet income limitations
- $69,000 for 1-2 people.
- $79,500 for 3 or more people.
- Have limited assets of less than $20,000 or 20% of the sales price.
- And invest at least $1,000 into the purchase.
You will receive home buyer education (required) via HUD or DCA (Department of Consumer Affairs) approved providers. It is available online (Visit: http://dca.ga.gov/GeorgiaDream/).
Be sure to get pre-qualified by one of the lenders listed at gadream.com. My understanding is that a credit score of 640 is required. The lenders will usually help you work toward improving your credit if necessary.
For an example, if you bought a $250,000 home and put $5000 down, a 30 year loan at 4%, would run $1169.67 for principal and interest (see our mortgage calculator). There are several other costs to consider (such as Primary Mortgage Insurance, regular home insurance, taxes, maintenance, etc.), but this will give you a good idea of what to expect. Work with your lender to calculate how much you can comfortably afford to spend monthly on a house and compare that to what you may be paying for rent. Maybe it is time for you to make the best move! Call me to learn more.
Update on the Georgia Dream Homeownership Program:
The Georgia legislature passed a bill to increase the outstanding bond limit allotted to the Georgia Housing and Finance Authority (GHFA) from $1.3 billion to $3 billion to fund the Georgia Dream Homeownership Program. This program makes first-time homeownership possible for more than 44,000 Georgians. Bond proceeds are paid off from mortgage payments made by homeowners. Loans are insured by the federal government, thus, protecting GHFA against losses resulting from default mortgages.
Additional information on related credit scores according to Shelter Lending Services:
If the borrower’s low-middle credit score is 700 or more the Housing Expense ratio and Debt-to-income ratio are determined by the lender’s automated underwriting system.
If the borrower’s low-middle credit score is at least 660 but no more than 699 the Housing Expense ratio can be no more than 35% and the Debt-to-Income ratio can be no more than 43%.
If the borrower’s low-middle credit score is at least 640 but no more than 659 the Housing Expense ratio can be no more than 28% and the Debt to Income ratio can be no more than 36%.