Home Loans — Georgia

Credit score requirements are critical when applying for a mortgage. Every inquiry affects your score, but we’ll give you an check-free quite so that you can explore your options without harming your chances of being approved.

Many people don’t have the savings to afford upfront expenses, especially as the average Georgian only makes $43,680 a year. No qualified buyer should be shut out of the housing market because they can’t afford a down payment or closing costs, which is why we work hard to assist our customers in finding grants and other options to pay these costs.

District Lending can help eligible homebuyers find assistance programs in Georgia, including some of the following.

Offered through the Georgia Department of Community Affairs (DCA), the Georgia Dream program helps low and moderate-income families access affordable financing options for a primary residence if they have liquid assets of less than $20,000 or 20% of the total purchase price (whichever is greater).

You can get down payment assistance of up to $10,000. Georgia Protectors, Educators, and Nurses, as well as those living with a disability, may qualify for greater assistance. Georgia Dream loans are available for homes up to $350,000.

The Georgia Dream program also has price and household income limits, varying depending on the city. We will help you pick the best-participating lenders while giving you access to the Georgia Dream Program homebuyer education.

One of the best programs in Georgia, IMAP is also available to eligible homebuyers through District Lending. Designed for very low-income families in Atlanta who plan to stay in their homes for ten years or more, Intown Mortgage Assistance Program provides up to $10,000 in closing costs and down payment assistance. You must meet eligibility requirements, like a minimum credit score of 660, and pay a $1,000 fee to fund the program.

This opportunity provides low and moderate-income families with up to $14,000 in a loan for a down payment and closing costs. This down payment loan will be forgiven in five years.

The City of Atlanta also provides a 3.5% down payment assistance grant for buyers who take out an FHA/VA loan, which will be forgiven upon closing.

If you qualify for the Georgia Dream Homeownership Program or other payment assistance programs, we’ll walk you through the process and help you navigate purchase price limits, minimum credit score requirements, and income limits these programs have.

These government-backed programs assist low and moderate-income families by providing affordable loan options with low mortgage rates and down payment requirements. As the government ensures the loan will be repaid, lenders are more willing to work with borrowers that have poor credit histories or low incomes. While you won’t need private mortgage insurance, you must pay a similar monthly premium to help fund the program.

FHA Loans

Provided by the Federal Housing Administration, FHA loans allow eligible homebuyers to buy real estate with only 3.5% down. The credit score thresholds are also lower: you can access low-interest loan options with a score as low as 500 if you provide a larger down payment.

An FHA loan has no minimum or maximum household income limits, but you must have at least two years of income history and a debt-to-income ratio of 43% or less. You must move into the home within 60 days of close. If you had a home foreclosed on, you must wait three years before applying for another FHA loan; this is in contrast to seven years for other loan types.

VA Loan

These low-interest loan options are for eligible veterans, active service members, and surviving spouses of a veteran who died on active duty or as a result of duty-related disability. There are often no down payment requirements and no monthly mortgage insurance., while FICO score requirements tend to be more flexible.

We’re proud to help you find the best participating lenders and help you realize your homeownership dreams.

USDA Loan

Designed to encourage homeownership in rural areas, these loans are restricted to zones outside of metropolitan areas. About 90% of Georgia municipalities are eligible for this option, which is a much higher percentage than in other, more urban states.

You don’t need to put any money down, and there’s no private mortgage requirement. Your monthly payment will be lower thanks to very competitive interest rates. If you’re curious about this option, check out the USDA’s zoning map to show where you can pursue a loan. In Georgia, this includes most places outside the major metropolitan areas of Atlanta, Savannah, and Columbus.

District Lending provides a variety of loan programs. This includes conventional and jumbo loan options.

Conventional Loans

These loans aren’t government-backed, which means you can work with a larger pool of participating lenders. However, they have higher loan limits but also more stringent FICO score requirements and a higher down payment requirement.

Non-Conforming or Jumbo Conventional Loans

If you want a home whose sales price is above the limits set by Fannie Mae and Freddie Mac, you can access a conventional jumbo mortgage loan. In 2023, the limit for a conventional mortgage is $726,200; any loan above this is considered a non-conforming or jumbo mortgage loan.

These are offered by fewer mortgage lenders and typically have higher FICO score requirements; you’ll also need to provide a higher down payment. Interest rates are generally higher for these types of loans because they are riskier for lenders.

We’re proud to provide some of the best mortgage rates in Georgia. You can sign up for our notifications so that you’ll be the first to know when rates in Georgia drop. You can also see typical rates for your zip-code, purchase price, down payment size and other loan factors on our rate tracker.

Don’t let closing costs keep you from achieving your homeownership goals! Part of our payment assistance includes rolling your closing costs into the mortgage so you have less to pay upfront.

A preapproval letter gives you a competitive advantage over other buyers, especially in hot markets. With a preapproval letter, you demonstrate to sellers that you will be able to access a mortgage up to a certain amount, which helps assure them that you are less likely to back out of a contract because your financing fell through.

By using our online preapproval application, you can have this all-important document within only a few hours.

At District Lending, we’ll help you start the application process and check your eligibility for down payment assistance programs. We’ll assist you throughout the life of your loan, including notifying you when rates drop so that you can be the first to refinance with more attractive rates.

We can also help you through the process of collecting documents, assessing your financial situation, and improving your credit score before we start looking for the perfect lender for you.

Not happy with your current mortgage? We’ll help you refinance to lower your monthly payments, shorten your term, reduce monthly insurance costs, switch to a fixed-rate mortgage, or tap into your real estate equity.

The most common mortgage is the 30-year fixed-rate mortgage, which locks in your interest rate at the beginning of the loan, but there are other loan options available, such as an adjustable-rate mortgage.

You can refinance your mortgage if rates drop lower than your initial rate. With this option, you will close the original loan and take a new mortgage out to cover the remaining balance of the current one with a lower interest rate. You don’t need to work with your original lender when you refinance.

Also, you may qualify for a second mortgage if needed, although second mortgage rates tend to be higher.

Our online calculator lets you explore all your loan options with different variables, such as a 30-year fixed-rate mortgage versus an adjustable-rate mortgage. Input different down payment prices and rates to see what you can afford.