Atlanta Housing Down Payment Assistance Program
$25,000
Atlanta Housing Down Payment Assistance Program
The Atlanta Housing Down Payment Assistance (DPA) Program provides down payment assistance to eligible first-time homebuyers up to $20,000, subject to meeting both the program and primary lender's requirements. Public safety, healthcare, education, current military or veteran, and Voucher Participants are eligible for up to $25,000.
AH DPA can be combined with other sources of DPA if approved by AH and the primary lender. Processing takes approximately 30 days after the primary lender receives a complete credit file.
Purchases involving non-occupant co-borrowers or co-signers are not eligible. Note that these eligibility criteria are subject to change without advance notice.
Eligibility Requirements
- First-time homebuyers who have not owned a home in the past 3 years, excluding any ownership interest in residential or commercial property during this period.
- The purchase price must be at most $375,000.
- Liquid assets of the buyer cannot exceed $35,000.
- The buyer's contribution or own funds for the purchase must be at least $1,500.
- Income must be at most 80% of the current HUD's MSA Area Median Income.
- Properties must be located within the City of Atlanta.
- The property must be the homebuyer's primary residence; second homes are prohibited.
- Applicants must meet the primary lender's credit requirements and secure approval for conventional, FHA, or VA loan financing.
- The primary loan term can range from 15 to 30 years and must be fixed-rate.
- Proof of Georgia residency for at least six months is required.
- Eligible properties include single-family detached homes, townhomes, or condominiums; undeveloped land is not qualified.
- Complete an eight-hour Homebuyer Education class from a HUD-approved provider, mandatory for all persons on the note.
Income
- Eligibility income cannot exceed 80% of the current HUD MSA AMI for metro Atlanta, and HUD updates it annually. If married, the combined revenue for all borrowers on the primary loan cannot exceed the maximum 80% of current AMI, even if only one spouse or partner is on the note; if two or more unrelated buyers are on the primary loan, the combined income for all borrowers cannot exceed the maximum 80% of current AMI.
- Wages/earnings/W-2 income cannot exceed the max eligible income of 80% of the current AMI.
- Self-employed (Schedule C) gross income (not the adjusted income with allowable IRS write-offs) cannot exceed the eligible income of 80% of the current AMI.
- Wage/earning/W-2 income PLUS self-employed (Schedule C) gross income cannot exceed the maximum qualified income of 80% of AMI.
- Income includes, but is not limited to, employment income, overtime income, commissions, bonuses, alimony, child support, second job income, stipends, and self-employment (Schedule C, K, Corporation or Subchapter S) income, etc. Current income/earnings determine eligibility income. At DPA approval, eligible income cannot exceed the prescribed area median income (AMI) percentage. The qualifying income used on the lender’s 1003 loan application will not be AH’s sole source of verification to determine if the buyer is income-eligible.
Interest Rate
There is no interest rate or deferred interest rate charged on the AH DPA subsidy.
Layering Other DPA Sources:
The AH DPA can be used in conjunction (layered) with other DPA sources, if approved and accepted by AH and the primary lender. AH reserves the right to modify and/or reject
layering of its subsidy.
Lien Position
The AH subsidy assistance will be in a second (2nd) lien position after the primary lender. AH
will consider a third (3rd) lien position when the City of Atlanta, Invest Atlanta, or the Atlanta
Community Land Trust’s subsidy assistance sources are also ‘layered’ as part of the
transaction.
Married Persons
For married persons who are not legally divorced or legally separated through
sufficient documentation from the courts to confirm same, income verification for
both parties must be provided in the credit package from the lender, regardless if
only one person is making application and will be signing the AH loan documents.
Own Funds
The buyer's minimum contribution must be $1,500 from their own funds.
Gift funds cannot be used in lieu of the borrower’s own funds. The $1,500 can be in the form
of the earnest money deposit, closing costs on the HUD-1/CD, or related POCs, e.g., appraisal,
home inspection, etc.
Primary Loan
The primary loan cannot be held by a private individual nor by the seller.
Properties
Eligible properties are single-family detached (SFD), townhomes (THs), and Condominiums
(CONDOs).
Property Inspection Report
A Property Inspection Report is required on all existing properties and optional for new
construction.
Qualifying Loans
For purchase/rehabilitation loan transactions, the maximum rehabilitation costs for improvements is limited to $35,000 and can be used for safety and soundness repairs, functional obsolescence, energy efficiency, and handicap accessibility.
All loan submissions must have a middle credit score of at least 620. For all loans underwritten by an “Automated Underwriting System”, i.e., DU, LP, or GUS, an AUS approval will be accepted if the housing expense ratio and the total debt-to-income ratio meet requirements.
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