Georgia first-time homebuyer grants and down payment assistance (2026)

Why the Georgia Dream second mortgage is never forgiven

Many states forgive their down payment loans after a few years. Georgia does not. The Seller Guide states that the Georgia Dream Second Mortgage Loan is non-forgivable for its whole life. Its balance does not shrink over time ⁠⁷. It is a 0% loan with no monthly or yearly payments, and the full amount is due when one of three things happens ⁠⁷⁠⁸:

• you sell or transfer the home;
• you refinance the first mortgage;
• you stop using the home as your principal residence.

You can prepay any part of it at any time with no penalty ⁠⁷. Payoffs go through DCA’s servicer, State Home Mortgage (1-800-781-8346) ⁠⁸. DCA says repaid money funds the next buyers ⁠⁸.

Standard Georgia Dream first mortgages are tax-exempt bond loans. DCA therefore gives every borrower a Notice of Potential Recapture Tax. You owe that federal tax only if all three of these apply: you sell within 9 years, you make a gain, and your income at sale is above the recapture income limit ⁠⁷. The tax is capped at 6.25% of the original loan or 50% of the gain, whichever is smaller ⁠⁷.

Standard, PEN or CHOICE: how DCA sets your amount

Georgia Dream has three assistance tiers, and they cannot be combined. You can borrow less than the maximum ⁠⁷.

Scroll the table sideways to see every column.

Sources: ⁠¹⁠²⁠³.

PEN covers more jobs than the name suggests. “Protectors” includes police, sheriff’s offices, corrections (including privately run), the Department of Motor Vehicles, fire departments with volunteers, the armed forces, National Guard, drilling reservists and civil servants on military bases. “Educators” covers every employee of an accredited school board, including bus drivers and Head Start and Pre-K staff, plus private schools and colleges. “Nurses” covers any worker at a state-licensed health care facility, from hospital staff to pharmacy technicians and home health aides ⁠⁷. On a $180,000 home, the 5% cap limits a Standard buyer to $9,000. The full $10,000 needs a price of $200,000 or more ⁠¹.

Three limit zones: Atlanta metro, Athens and the other 130 counties

DCA does not publish a county-by-county table. It sorts Georgia’s 159 counties into three zones. Household income counts everyone who will live in the home in the 12 months after closing, not just the borrowers ⁠².

Scroll the table sideways to see every column.

The Atlanta zone is Barrow, Bartow, Carroll, Cherokee, Clayton, Cobb, Coweta, Dawson, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Heard, Henry, Jasper, Newton, Paulding, Pickens, Pike, Rockdale, Spalding and Walton counties. Savannah, Augusta, Columbus and Macon fall in “all other” ⁠⁶.

Peach Advantage ignores household size. It allows qualifying income up to 150% of area median income. Look up your county in Fannie Mae’s or Freddie Mac’s AMI lookup tool ⁠⁴. Georgia Dream also caps liquid assets after closing at $20,000 or 20% of the price, whichever is greater. Retirement accounts do not count, but gifts over $5,000 do ⁠².

The first-time rule (no owned and occupied home in the past 3 years) is waived in Targeted Areas. These are 81 whole counties, such as Bulloch, Coweta, Laurens, Newton and Thomas, plus listed census tracts in places like Bibb and Chatham. Veterans who have never used bond-financed help are also exempt ⁠²⁠⁷. Even then, you cannot own any other real estate at closing ⁠⁸.

Peach Plus, Peach Advantage and Peach Select for buyers outside the rules

• Peach Plus is for FHA and VA borrowers who are not first-time buyers or who earn too much for Georgia Dream. It has the same 0% deferred second and a smaller percentage cap. It was priced at 7.125% on Oct. 15, 2026 ⁠³⁠⁹. You cannot own any other home at closing, and every buyer needs homebuyer education ⁠³.
• Peach Advantage is a conventional, non-bond loan serviced by Lakeview Loan Servicing. You can take no assistance or 2% to 5% of the first loan. The second is 0% and non-forgivable, and it is due on sale, refinance or move-out. It has no minimum investment and no household-size income test ⁠⁴.
• Peach Select VA is a below-market VA first mortgage with no DCA down payment help, priced at 5.625% on Oct. 15, 2026. It can be paired with an outside assistance program. DCA runs it only while funding reserves last ⁠⁵⁠⁷⁠⁹.

Credit, ratio and cash rules DCA checks after your lender

Credit. Every DCA product requires a 640 middle score, or 660 for a manufactured home ⁠²⁠⁴. With a score from 640 to 699, both the housing ratio and the total debt-to-income ratio must be 45% or less. At 700 and above, the automated underwriting approval sets the limit. DCA may allow up to two points more if there are compensating factors ⁠². Manual underwriting is allowed for FHA and VA loans only when you have no credit score, and it is capped at 28% housing and 36% total DTI ⁠². If your score is under 640, DCA’s $50 “Ready, Set, Go” course includes three counseling sessions ⁠⁸.

Cash. You must put in at least $1,000 of your own money by check, money order or debit card. Credit cards do not count ⁠². You cannot get cash back at closing ⁠².

Education. At least one owner-occupant must complete a workshop or individual counseling with a DCA- or HUD-approved agency, or the eHome America online course at ehomeamerica.org/dca for $50. Income-based vouchers can cover that fee ⁠⁷⁠¹⁰. Fees cannot exceed $100, and the certificate must be dated within 12 months of closing ⁠⁷. Peach Advantage instead uses Fannie Mae’s HomeView or Framework, or Freddie Mac’s CreditSmart ⁠⁴.

No MCC. DCA’s 2026 Seller Guide and program pages describe no mortgage credit certificate. Georgia buyers have no state MCC to claim ⁠⁷.

Atlanta, Gwinnett and Savannah money you can layer on top

DCA allows other assistance only if it sits in a lien behind DCA’s ⁠². The Atlanta and Gwinnett programs below were taking buyers on Oct. 20, 2026:

• Invest Atlanta, ATL HomeNOW. Up to $20,000 inside Atlanta city limits for down payment, closing costs or a rate buydown. It is forgiven after 10 years as your primary residence. It needs a 620 credit score, $1,500 of your own money and under $35,000 in liquid assets. Income limits are $99,000 for one person and $141,360 for four, and the first mortgage can be up to $325,000. Invest Atlanta also runs the Beltline Mortgage Assistance Program (up to $30,000 for legacy residents and civil servants, 15-year affordability period). Every buyer must attend a 90-minute Q&A session and a homebuyer education class with an Invest Atlanta participating educator ⁠¹¹.
• Atlanta Housing DPA. Up to $20,000 for first-time buyers at or below 80% of AMI, or $25,000 for public safety, health care, education, military and veterans. The price cap is $375,000. Atlanta Housing does not publish repayment terms for this general program. It requires an 8-hour HUD-approved class for everyone on the note ⁠¹². Atlanta Housing’s own voucher holders can get up to $60,000, forgiven after 10 years in the home ⁠¹³.
• Gwinnett County, Homestretch. Up to $10,000 at 0% from federal HOME funds, forgiven 20% a year over 5 years. It is for first-time buyers at or below 80% of AMI ($94,250 for four people, effective May 1, 2026). Price caps are $371,000 for an existing home and $425,000 for a new one. It needs a 580 credit score, DTI caps of 43% and 55%, and household assets of $25,000 or less ⁠¹⁴.
• Savannah, DreamMaker. Up to $30,000, or $50,000 for housing developed with the city, as a 2%, 30-year deferred payment loan for a first home inside city limits. The city’s May 2026 page said it takes applications year-round while funds remain. The city site did not load on Oct. 20, 2026, so call (912) 651-6926 to confirm funds ⁠¹⁵.

Getting a Georgia Dream loan through a participating lender, step by step

1. Check your zone and household income

   Use the July 8, 2026 table. Count every adult who will live in the home, including those not on the loan ⁠²⁠⁶.

2. Call a participating lender

   Pick one from DCA’s list, or call 1-800-359-4663. The lender pre-qualifies you and tells you whether Georgia Dream, Peach Plus or Peach Advantage fits ⁠¹⁠⁸.

3. Take homebuyer education

   Use a DCA-approved agency in your county or the $50 eHome course. Atlanta Housing and Gwinnett money also needs an 8-hour HUD-approved class, and Invest Atlanta needs a class from its own educator list ⁠¹⁰⁠¹¹⁠¹²⁠¹⁴.

4. Gather documents

   You need three years of IRS tax transcripts and your latest signed return. You also need 30 days of paystubs and bank statements dated within 45 days, plus a signed letter on every prior address showing no recent ownership ⁠².

5. Sign a contract, and the lender reserves funds

   The lender locks the rate and assistance in DCA’s portal. The reservation lasts 75 days, through DCA’s compliance review and funding ⁠²⁠⁸.

6. Close and keep the second-mortgage note

   DCA says most purchases close in about 30 to 45 days ⁠⁸. Keep the note and the recapture notice for when you sell or refinance ⁠⁷.

If DCA’s compliance review turns you down, ask the lender which rule failed. Peach Plus or Peach Advantage may fit where Georgia Dream did not ⁠³⁠⁴. Compare other states on the first-time homebuyer grants page and see other Georgia guides on the Georgia page.