With so many considerations to make, looking at homes for sale in the City of Decatur can be both exciting and tricky.. Fortunately, Georgia offers several dedicated homebuyer home loan programs for residents to make homeownership more accessible and easier.
GOVERNMENT-BACKED HOME LOANS
As long as they have not owned a house three years before the application, individuals may purchase their dream house through the Georgia Dream Homeownership Program.
This government-sponsored program offers first-time buyers economical financing options to purchase any of the houses for sale in Decatur, GA, as long as they can afford it and pass the requirements for eligibility. This includes having at least $1,000 to invest in a property.
The Georgia Dream offers various ways to provide financing to buyers of homes for sale in the City of Decatur. These loan options usually don’t require a high credit score and income standing:
Federal Housing Administration (FHA)
These days, the acceptable credit score to secure a home loan is around 620. But even with a score of 580, homebuyers can still be eligible for an FHA loan but with a corresponding mortgage insurance premium, or MIP, that could go as low as 3.5% of the total loan amount. The MIP is there to cover potential losses on the lender’s side in case the borrower defaults on their mortgage.
Department of Veterans Affairs (VA)
VA loans offer plenty of advantages to members of the military, including existing service members, veterans, and military spouses. These include affordable interest, zero down payment, and zero mortgage insurance. A credit score of 640 is required.
PEN (Protectors, Educators, and Nurses)
The Georgia PEN is another loan option for active service members and the National Guard, as well as healthcare providers, public protectors or first responders, and educators. This program extends zero-interest loan assistance of up to $12,500.
Consumer Home Ownership Independent Choices for Everyone (CHOICE)
For persons living with disabilities or a disabled family member, CHOICE extends a loan of up to $12,500, which can be used as a down payment for a house. The caveat: borrowers must repay the loan in full should there be a change in ownership or circumstances, like in selling or transferring ownership, refinancing the property, or when the house is no longer treated as a primary residence.
Standard Down Payment Assistance
This zero-interest down payment assistance program offers a loan of up to $10,000 which borrowers must repay in full should there be a change in ownership or principal address.
READY, SET, GO
For those who are unable to meet the minimum credit score, Georgia Dream offers Ready Set, Go, a financial education course for hopeful buyers. Counselors teach insightful lessons on how to manage finances, including effective budgeting, handling mortgage payments, and increasing one’s credit scores to qualify for a home loan.
CONVENTIONAL MORTGAGES
With requirements set by Fannie Mae and Freddie Mac, these home loans can be made available to first-time home buyers and low-income earners at a down payment as low as 3%. But if a 20% down payment is made, borrowers have the option to either cancel the mortgage insurance or avoid it totally.
LET CARTER AND ASSOCIATES REALTORS HELP
Allow the team of Carter and Associates Realtors to assist you in finding homes for sale in the City of Decatur and a financing option that suits your budget. Contact 404.932.7388 (Christina) or 404.944.6577 (Chad) or email them here today.