Real Estate - Joel Kellem - The Key Group of Real Broker LLC

Unlock Your Path to Homeownership

Buying your first home is an exciting milestone, but it also comes with many questions—especially when it comes to financing. How do you secure a mortgage? What assistance programs are available to help with down payments? We're here to guide you through the process. Below, you'll find essential information about financing, along with details on specific programs in Georgia designed to make homeownership more affordable. Let’s turn your dream of owning a home into reality!

First-Time Home Buyers

Buying your first home is a big milestone! Here are the five most important things to know about the process:

1. Know Your Budget & Get Pre-Approved

Review your finances and determine how much house you can afford. Check your credit score—higher scores get better mortgage rates. Get pre-approved for a mortgage to understand your loan options and show sellers you’re serious.

2. Understand Additional Costs

Beyond the down payment, you'll need to cover closing costs (2-5% of the home price). Property taxes, homeowners insurance, and maintenance costs add up.

3. Pick the Right Location

Research neighborhoods based on commute, schools, safety, and future value. Visit the area at different times of the day to get a feel for the community.

4. Get a Home Inspection

Always have the home inspected to uncover hidden issues (structural, plumbing, electrical, etc.). Negotiating repairs or price reductions based on the inspection can save you money.

5. Be Prepared for the Long-Term Commitment

Homeownership comes with ongoing costs like maintenance and repairs. Plan to stay in the home for at least 3-5 years to build equity and avoid potential losses.

FINANCING

FHA Loans

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA) designed to help borrowers, especially first-time homebuyers, qualify for home financing with more flexible requirements. These loans offer lower down payment options — as little as 3.5% — and more lenient credit score standards compared to conventional loans, making homeownership more accessible to those with limited savings or less-than-perfect credit. FHA loans also allow for higher debt-to-income ratios, providing greater flexibility for borrowers managing other financial obligations. FHA loans are a valuable tool for those seeking a more attainable path to homeownership.

Conventional Loans

A conventional loan is a mortgage that is not insured or guaranteed by any government agency, such as the FHA, VA, or USDA. Instead, it is backed by private lenders. Conventional loans typically require a higher credit score, a larger down payment (often 5% to 20%), and a lower debt-to-income (DTI) ratio compared to government-backed loans. However, they offer flexibility with fewer restrictions on property types and loan limits. While borrowers with a down payment of less than 20% must pay private mortgage insurance (PMI), it can be removed once enough home equity is built. Conventional loans are ideal for buyers with strong financial profiles seeking competitive interest rates and long-term savings.

USDA Loans

A USDA loan is a mortgage program backed by the U.S. Department of Agriculture (USDA) aimed at helping low- to moderate-income borrowers purchase homes in eligible rural and suburban areas. This loan offers 100% financing, meaning qualified buyers can purchase a home with no down payment, making it an attractive option for those with limited savings. USDA loans also feature competitive interest rates and typically have lower mortgage insurance premiums compared to conventional loans. To qualify, borrowers must meet certain income limits and the property must be located in a USDA-designated area. This program provides an affordable path to homeownership for those seeking to live outside urban centers.

VA Loans

A VA loan is a mortgage program backed by the U.S. Department of Veterans Affairs (VA), designed to help veterans, active-duty service members, and eligible surviving spouses achieve homeownership. One of the most significant benefits of a VA loan is the ability to purchase a home with no down payment and no private mortgage insurance (PMI), which can greatly reduce upfront and monthly costs. VA loans also offer competitive interest rates, more flexible credit requirements, and limits on closing costs to protect borrowers. Additionally, there are options for refinancing and assistance for struggling homeowners. This program provides a well-deserved financial advantage for those who have served our country!

GEORGIA

Home Buyer Programs

As a first-time homebuyer, you may be eligible for a variety of state and federal programs designed to make purchasing a home more affordable. Many state and local programs offer down payment assistance and other financial incentives to reduce upfront costs. Exploring these resources can provide valuable support, helping you achieve homeownership with greater confidence and financial flexibility.

Georgia Dream Homeownership Program

The Georgia Dream Homeownership Program is a state-sponsored initiative designed to help eligible first-time homebuyers, public servants, and those with moderate incomes achieve affordable homeownership. The program offers down payment assistance of up to $7,500 (and up to $10,000 for eligible public protectors, educators, healthcare providers, and those with disabilities) to help cover upfront costs such as the down payment and closing expenses. To qualify, applicants must meet income and purchase price limits, complete a homebuyer education course, and obtain a fixed-rate mortgage from a participating lender. This program provides a valuable opportunity for Georgia residents to overcome financial barriers and achieve the dream of homeownership.
Atlanta Housing Down Payment Assistance Program

Offered by Atlanta Housing, this program provides up to $20,000 in down payment assistance to eligible first-time homebuyers. Public safety workers, healthcare providers, educators, current military personnel, veterans, and voucher participants may qualify for assistance up to $25,000.
Invest Atlanta Homebuyer Programs

Invest Atlanta provides various homebuyer programs, including down payment assistance, to make homeownership more affordable within the city. For instance, the ATL Home Renovation Advantage program offers $20,000 towards down payment and closing costs for homebuyers using a home renovation mortgage loan.
Homestretch Down Payment Assistance Program (Gwinnett County)

This program offers up to $10,000 in down payment assistance as a five-year deferred payment loan with 0% interest. The loan does not need to be repaid as long as the homebuyer occupies the home as their principal residence for at least five years.
Clayton County Down Payment Assistance Program

Clayton County offers a down payment assistance program to help eligible homebuyers with their down payment and closing costs. Specific details about assistance amounts and eligibility criteria can be found on their official website.