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Atlanta Development Authority Down Payment Assistance Program
HOME ATLANTA $8,000 Tax Credit for First Time HomeBuyers
PROGRAM STRUCTURE
• 30-year fixed rate loans
• Interest rate 5.95%
• 4% mortgage assistance grant available to all borrowers to be used toward down payment and closing cost.
ELIGIBLE BORROWERS
• Borrowers purchasing in Non-Target Areas must be first time homebuyers or not have had an ownership interest in a principal residence for the last three years.
• There is no first time home buyer requirement for borrowers moving into the Targeted Area (80% of the City), but current residence must be sold prior to closing on the new property.
• Borrower Must:
♦ Secure an executed real estate contract on the property to be purchased
♦ Have a sound credit history
♦ Provide copies of federal tax returns for the past three years
♦ Attend ADA approved homebuyers seminar
♦ Have existing property inspected prior to closing
♦ Contribute $1500 of own funds toward closing
Maximum Income Limits:
Non-Target Areas Target Areas
$71,200 for 1 or 2 person $85,440 for 1 or 2 person
households households
$81,880 for 3 or more $99,680 for 3 or more
person households person households
Maximum Purchase Price Limits:
Non-Target Areas Target Areas
$299,475 $366,025
ELIGIBLE PROPERTIES
• The property must be located in the city limits of Atlanta.
• Both newly constructed and existing homes.
• Single family detached homes, townhomes and condominiums
• Existing or foreclosed properties needing rehabilitation
"OPPORTUNITY DOWNPAYMENT ASSISTANCE"
"Home Atlanta" borrowers may also qualify for the "Opportunity Downpayment
Assistance Program". This program provides borrowers with additional down payment assistance of 20% of the sales price at a 0% interest rate.
• The 20% deferred loan requires no payments and is forgiven if the borrower occupies the property for at least 10 years.
• The maximum purchase price is $252,900.
• Maximum income limits are the same as for the Non-Target Area.
• A $1,000 program administration fee is charged to borrower at closing.
For more information, call Rony Paul (Broker Century MLS Realty) 404-810-1800
HOME ATLANTA MORTGAGE ANALYSIS:
SALES PRICE $160,000.00 $180,000.00 $200,000.00 $240,000.00
4% GRANT OF LOAN AMOUNT $5,120.00 $5,760.00 $6,400.00 $7,680.00
OPPORTUNITY BOND ASSISTANCE $32,000.00 $36,000.00 $40,000.00 $48,000.00
DOWN PAYMENT- AAHOP/ADDI $0.00 $0.00 $0.00 $0.00 $0.00
TOTAL FINANCED AMOUNT 122,880.00 138,240.00 153,600.00 184,320.00
INTEREST RATE 5.95% 5.95% 5.95% 5.95%
TERM OF FIRST MORTGAGE 30 30 30 30
PRINCIPAL AND INTEREST PMT 739.95 832.44 924.94 1,109.92
ANNUAL PROPERTY TAXES 2,316.06 2,659.18 3,002.30 3,688.54
ANNUAL HOMEOWNER INSUR.($4 PER
THOUSAND) 640.00 720.00 800.00 960.00
MONTHLY T&I ESCROW 246.34 281.60 316.86 387.38
HOMEOWNER ASSOCIATION FEES* N/A N/A N/A N/A
PRIN., INT., TAXES & INSURANCE & FEES 986.29 1,114.04 1,241.79 1,497.30
* MINIMUM INCOME REQUIRED BASED ON 35%
AFFORDABILITY TEST $33,815.57 $38,195.70 $42,575.82 $51,336.07
* This example is for demonstration purposes only. This "minimum" income calculation assumes that the applicant has NO ADDITIONAL DEBT. Each loan will be evaluated on an individual basis so minimum income required may vary.
HOME PURCHASE-QUALIFYING INCOME WITHOUT OPPORTUNITY BOND ASSISTANCE:
SALES PRICE $160,000.00 $180,000.00 $200,000.00 $240,000.00
4% PREMIUM $6,400.00 $7,200.00 $8,000.00 $9,600.00
OPPORTUNITY BOND ASSISTANCE $0.00 $0.00 $0.00 $0.00
DOWN PAYMENT- AAHOP/ADDI $0.00 $0.00 $0.00 $0.00
TOTAL FINANCED AMOUNT 153,600.00 172,800.00 192,000.00 230,400.00
INTEREST RATE 5.95% 5.95% 5.95% 5.95%
TERM OF FIRST MORTGAGE 30 30 30 30
PRINCIPAL AND INTEREST PMT 924.94 1,040.55 1,156.17 1,387.40
ANNUAL PROPERTY TAXES 2,316.06 2,659.18 3,002.30 3,688.54
ANNUAL HOMEOWNER INSUR.($4 PER
THOUSAND) 640.00 720.00 800.00 960.00
MONTHLY T&I ESCROW 246.34 281.60 316.86 387.38
HOMEOWNER ASSOCIATION FEES* N/A N/A N/A N/A
PRIN., INT., TAXES & INSURANCE & FEES 1,171.27 1,322.15 1,473.03 1,774.78
* INCOME REQUIRED BASED ON 35%
AFFORDABILITY TEST $40,157.99 $45,330.92 $50,503.85 $60,849.70
* This example is for demonstration purposes only. This "minimum" income calculation assumes that the applicant has NO ADDITIONAL DEBT
Atlanta Development Authority
Home Atlanta
Frequently Asked Questions
Q: I heard something on the radio about a new program for people who want to live in the city - what is it?
A: The Home Atlanta program provides a 30 year mortgage at 5.95% with a 4% grant. Eligible borrowers may also receive 20% of the purchase price as an additional incentive.
Q: Is it a first time homeowner program or can anyone apply, or is it just for families?
A: Anyone can apply. You do not have to be a first-time buyer, but you cannot own another property at time of closing.
Q: Are there income stipulations?
A: Generally speaking, your income cannot exceed $71,200 for a 1 to 2 person household or $81,880 for a 3 to 4 person household. If your income is over those limits, call 404-810-1800 for other program options.
Q: Do you have to buy in specific areas - what are those "target areas"?
A: Yes, as long as the property is inside the Atlanta City Limits you are eligible for the program. There are certain neighborhoods that are designated as target areas. Additional incentives may be available in these areas.
Q: Do you have to have a credit score above a specific number?
A: Lenders will evaluate each individual on a case by case basis, but credit history is a factor for qualification.
Q: Do I have to provide a down payment?
A: You must contribute at least $1,500 to the transaction, which can be a combination of an earnest money deposit, application fee or inspection cost.
Q: What are the specific requirements for qualification?
A: Your income cannot exceed the applicable income limits, the sales price cannot exceed program limits and the property must be in the City of Atlanta. You must also qualify for a conventional or FHA loan with an approved lender.
Q: Do you pick the lender or can I?
A: We require that you select a lender from our approved lenders list. The list is available call 404-810-1800
Q: Why were those lenders chosen?
A: These lenders applied for the program and have a demonstrated and proven track record.
Q: How long will it take to qualify and get in a home?
A: Once you submit all of your information it should take at least three weeks to qualify and approximately another one to two weeks to prepare the loan for closing.
Q: Why would anyone use this program as opposed to any other homeowner program in Atlanta? What are the benefits?
A: No other program provides this much financial assistance towards down payment and closing costs.
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