The Georgia Dream Second Mortgage Program provides a deferred payment Loan for the down payment, closing costs, prepaid expenses or principal reduction associated with the purchase of a home. This Chapter outlines special programs that have unique features using Georgia Dream Second Mortgage Loan funds. The program requirements specific to the Special Georgia Dream Second Mortgage Loan Programs contained in this Chapter must be used in conjunction with the requirements for all Georgia Dream Homeownership Program Loans contained in Chapter 3 of this Guide.
401 Protectors, The PEN program provides Georgia’s heroes, who help Educators, and others in times of need, with an increased amount of down Nurses (PEN) payment assistance to assist with the purchase of a home. An Applicant for the PEN program must meet one of the eligible borrower definitions in Section 401.2.
401.1 The PEN Loan amount is $7,500. The PEN Loan may not
Loan Amount be combined with any other Georgia Dream Second
Mortgage Loan Program.
401.2 Applicants must meet the requirements outlined in Chapter 3
Eligible Applicants of this Guide. In addition, an Applicant must meet the
definition of a Protector, Educator, or Nurse (Health Care Workers) as defined below:
a) Protectors are employees and/or active duty personnel of (i) a police department, sheriff’s office, corrections department*, or other law enforcement agency administered by or part of a local, state, or federal government or other political subdivision of the state, that is responsible for the enforcement of the penal, traffic, or highway laws or the incarceration or detention of offenders; (ii) a local, state, or federal fire department, including volunteer firefighters, that are responsible for at least one of the following: natural disaster response, fire suppression, emergency medical response and patient care, fire and injury prevention, arson investigation, hazardous materials, incident response and management, and/or response to acts of terrorism; (iii) the armed forces of the United States of America consisting of the United States Army, United States Navy, United States Air Force, United States Marine Corps, United States Coast Guard; (iv) the
401.3
Eligible Properties 401.4
Use of the PEN Loan Amount 401.5 Documentation for DCA Underwriting Package
Army National Guard; and/or (v) the Air National Guard.
*Including Homeland Security and/or the correction departments that are administered by a private corporation under State or Federal guidelines.
b) Educators are employees of (i) a local, city or county school board that is recognized by the state or accredited by a state or regional accrediting association. This would include Head Start programs, Pre-K, elementary and high school teachers and all other employees of a school or board of education; (ii) a private school system that is recognized by the state or accredited by a state or regional accrediting association; (iii) state-certified teachers of a Head Start, Pre-K program or day care provider not connected to a local school board system that can provide evidence of current certification in the state of Georgia at time of DCA underwriting; and (iv) employees of post- secondary institutions.
c) Nurses (health care workers) are employees of a state licensed health care facility including, but not limited to, hospitals, medical and dental offices, health departments and nursing homes.
Properties secured by a PEN Loan must meet the property requirements described in Chapter 3 of this Guide.
The PEN Loan must meet the requirements in Chapter 3 except that the loan amount is $7,500.
The following is required in the DCA Underwriting Package as evidence that the Applicant meets the requirement of a Protector, Educator or Nurse (health care worker):
a) Protector - current pay stub or Verification of Employment (VOE) or letter stating volunteer fire fighter status, if applicable, from an appropriate source as defined in Section 401.2;
b) Educator – current pay stub or Verification of Employment from an appropriate source as defined in Section 401.2 or evidence that Applicant is a current Georgia certified teacher if not employed by a school
Georgia Dream Homeownership Program Seller Guide 402 CHOICE (Consumer Homeownership and Independence Choices for Everyone) 402.1 Loan Amount 402.2 Eligible Applicants 402.3 Eligible Properties 402.4 Use of the CHOICE Loan Amount
board system or private school system.
c) Nurse (health care workers) – current pay stub or Verification of Employment from a state licensed health care facility.
The CHOICE program will assist individuals with
disabilities who, because of income considerations alone, cannot afford to purchase a home in their community. An applicant for the CHOICE program must meet one of the eligible borrower definitions in Chapter 3 of this Guide.
The CHOICE program Loan amount ranges from $7,500 to
$10,000 based on the Household Annual Income and the location of the home to be purchased. The CHOICE program Loan may not be combined with any other Georgia Dream Second Mortgage Loan Program.
Loan amounts under this program are as follows:
CHOICE Loan Amount Total Household Income
Atlanta MSA * Balance of State*
$ 7,500 $30,000 and Over $25,000 and Over $10,000 $29,999 and Less $24,999 and Less * The Applicant’s Household Annual Income cannot exceed the Georgia Dream Second Mortgage income limits as defined in Appendix VII of this Guide.
All Applicants must meet the income, credit and program requirements of the Georgia Dream Homeownership Program. In addition, CHOICE Applicants must be disabled or have a disabled dependent who will be a Household member.
Properties secured by a CHOICE Loan must meet the property requirements described in Chapter 3 of this Seller Guide.
The CHOICE Loan must meet the requirements in Chapter 3
except that the loan amount may be $7,500 or $10,000 based on the total household income.
402.5 Documentation for DCA Underwriting Package 403 Single Family Development
Applicants must provide documentation to the Lender verifying the status of the disability and dependency. Eligible documentation will include either (1) a Social Security Disability Determination Letter or (2) a certified denial from SSI which states that a disability exists but the applicant is not income eligible for funds, or documentation from an acceptable medical source that indicates the existence of an impairment listed on the Social Security Administration’s website “listing of Impairments”,
www.ssa.gov/disability/professionals/bluebook/listing- imparments.htm.
and (3) evidence of dependent status (if applicable). A disability determination is only acceptable for the applicant, the applicant’s spouse or a dependent of an applicant.
In addition, all participants must provide evidence that they have completed comprehensive individualized housing counseling from a DCA or HUD approved Housing Counseling Agency or a certified housing counselor.
The Single Family Development Second Mortgage loan program is designed to encourage the construction, rehabilitation and purchase of homes developed under the Georgia Department of Community Affairs’ Single Family Development Program
403.1
Loan Amount
403.2
Eligible Applicants
The Single Family Development Second Mortgage Loan amount is determined by the Georgia Department of Community Affairs upon approval of the developer applications submitted for the Single Family Development Program. The maximum loan amount is $30,000. The Single Family Development Program Loan cannot be combined with any other Georgia Dream Second Mortgage Loan Program.
Single Family Development Second Mortgage Loan Applicants must meet the requirements outlined in Chapter 3 of this Guide. In addition, Applicants must be purchasing a home that is constructed or rehabilitated under the Georgia Department of Community Affairs’ Single Family Development Program.
Georgia Dream Homeownership Program Seller Guide
403.3
Eligible Properties
403.4
Use of the Single Family Development Program Loan Amount 403.5 Documentation for DCA Underwriting or Purchase Package 404 Signature Communities 404.1 Loan Amount 404.2 Eligible Applicants 404.3 Eligible Properties 404.4 Use of the Signature Communities Loan Amount
Single Family Development Second Mortgage Loans must be secured by properties that have been constructed or rehabilitated under the Georgia Department of Community Affairs’ Single Family Development Program and that meet the requirements of Chapter 3, of this Guide.
The Single Family Development Second Mortgage Loan must meet the requirements of the Georgia Dream Second Mortgage Loan Program in Chapter 3, except that the maximum loan amount is $30,000.
The DCA Underwriting Package must contain a copy of the Single Family Development Program Homebuyer Subsidy Reservation Form (SFD-6) which has been provided by the developer as evidence that the property meets the requirements of the Single Family Development Program. The Signature Communities Second Mortgage Loan program provides local government employees in Signature Communities with an increased amount of down payment assistance to assist them with the purchase of a home. An Applicant for the Signature Communities Second Mortgage Loan program must meet one of the eligible borrower definitions in Section 404.2.
The Signature Communities Second Mortgage Loan amount is $7,500. The Signature Communities Second Mortgage Loan may not be combined with any other Georgia Dream Second Mortgage Loan Program.
Applicants must meet the requirements outlined in Chapter 3 of this Guide. In addition, an Applicant must be a local government employee in the DCA designated Signature Community.
Properties secured by a Signature Communities Second Mortgage Loan must meet the property requirements described in Chapter 3 of this Guide.
The Signature Communities Second Mortgage Loan must meet the requirements in Chapter 3 except that the loan amount is $7,500.
404.5
Documentation for DCA
Underwriting Package
A current pay stub or Verification of Employment (VOE) or letter stating employment from an appropriate source as defined in Section 404.2 is required in the DCA Underwriting Package as evidence that the Applicant meets the requirement of a local government employee in a Signature Community. 405 Georgia Dream Rewards Second Mortgage Loan Program 405.1 Loan Amount 405.2 Eligible Applicants 405.3 Eligible Properties 405.4 Household Income Limits
The Georgia Dream Rewards Second Mortgage Loan Program offers down payment and closing cost assistance to borrowers whose incomes are greater than the maximum income allowed for existing federally funded programs. This assistance comes in the form of a silent second mortgage loan, repaid when the home is sold, refinanced, or no longer used as the principal residence of the borrower.
The Georgia Dream Rewards Second Mortgage Loan Program amounts are listed below and must be combined with a Georgia Dream Rewards First Mortgage Loan originated by a DCA approved Lender.
$5,000 if purchase price is $150,000 or less $7,500 if purchase price is greater than $150,000 Georgia Dream Rewards Second Mortgage Loan Program Applicants must meet the requirements of the Georgia Dream Second Mortgage Program outlined in Chapter 3 of this guide.
In addition, Applicants must have a low middle FICO credit score of 660 or higher.
Properties secured by a Georgia Dream Rewards Second Mortgage Loan Program must meet the property requirements described in Chapter 3 of this guide.
The household income limits for the Georgia Dream Rewards Second Mortgage Loan Program are:
Atlanta MSA
1 or 2 persons $71,000
3 or more persons $82,000 Purchase price up to $250,000
Georgia Dream Homeownership Program Seller Guide 405.5 Applicant Funds Required 405.6 Liquid Assets Limitation 405.6 Documents for DCA Underwriting Or Purchase Package Statewide 1 or 2 persons $61,000 3 or more persons $70,000 Purchase price up to $200,000
The Applicant must contribute a minimum of $1,000 towards the purchase transaction. The $1,000 must be the Applicant’s own funds and cannot be a gift or grant. Cash paid to the applicant at closing must be no greater than the amount of Applicant’s funds used less the required $1,000 contribution.
The Applicant(s) must not have liquid assets in excess of the following amounts at time of loan closing unless the liquid assets over the allowable amount have been or will be consumed by a documented emergency or other extraordinary event beyond the control or planning of the Applicant or will be used in the purchase transaction:
Asset Limit Asset Limit
Georgia Dream Georgia Dream Rewards
Rewards First Mortgage First Mortgage coupled with a
Georgia Dream Rewards Second Mortgage
$20,000 or 20% of $20,000 or 20% of sales price,
sales price, whichever is greater
whichever is greater
Documentation as listed on the underwriting, closing and purchase package checklists for the Georgia Dream Rewards Second Mortgage Loan Program.
See Checklist Section of this Seller Guide