All About the Dekalb County Down Payment Assistance Program $5,000 & $8,000

This Dekalb County home was listed at only $83,000.  Yep!  That's right!!! a 5 bedroom 3 bathroom home!!

And you could have bought it and received $5,000 to $8,000 from Dekalb county to make the purchase!  Dekalb County has a first time home buyer program that  will give you money to use toward the down payment of a home in Dekalb county only.  Now there are some guidelines, but that is what I am here for!  to walk you through the process so that you understand the requirements, are aware of what to expect and hopefully you will have a smooth transaction!

You can use the money toward your Down Payment, Closing Costs, or other pre-paid expenses.  If you begin the process and your credit score is below a 620, however with utilizing the counseling available, you raise your score over the 620 mark, then Dekalb county will increase your amount from $5,000 to $8,000!!  Now, keep in mind, this money will act as what is considered a "soft second mortgage" on your title.  You will have to live in your home for at least 5 years in order for that "soft second" to be released from your title.  Now you can move sooner if you have to, but please keep in mind that upon closing Dekalb county will expect their money back.

Now, moving on to the program.  There are income guidelines for the program and the home price can not be over $160,000.  The maximun annual income limits are $39,850 for a household of one and it goes up incrementally the more people in your home you have. 

You are eligible if you have not purchased a home in the last 3 years, and the home must be located in the county limits.  You will have to participate in a home ownership pre-purchase counseling, and the home you select must be single family.  Sorry, no townhomes nor condominiums ( basically due to HOA issues).  The home you select must also pass the Dekalb County home inspection, and let me tell you from experience... the home cannot be a fixer upper.  the dekalb County inspector is very meticulous and they will look at wobbly toilet seats and drain stoppers!  So the home must pass their muster!

1. Get a prequalification from a preferred lender.  Now I say preferred because they have a list of approved lenders.  this basically means that the lender has taken the class they offer to become familiar with the program expectations and how they can utilize the program.  This is very important.  Many lenders will tell you there is no money available to you simply because they do not want to be bothered with the additional work required to process your loan utilizing the program.  Keep in mind that there is double processing on as the lender will take your loan application , process your loan and after they are 100% done with your  file they have to send the entire package to Dekalb County for another underwriter to review it to make sure it qualifies for their funds.  This can honestly take some time.  they are meticulous and everything must be right or you can expect delays for sure!

2. Take the Required Homebuyer Education Seminar and then meet personally with a housing counselor for an individual counseling session.  This must be a counseling agency approved by Dekalb County.  The topics covered will be *how to get a mortgage *money for down payment * planning for home ownership responsibilites *evaluating your ability to afford a home * types of financing available * budgeting and credit * understanding your FICO score *avoiding foreclosure.

3. Search for your Home!  Once you have received a prequalification from a lender and you have completed your homebuyer education class and individual counseling session, you are ready to find your home!  You have many choices to make as there are many great deals to be had in the Dekalb County area!  Just keep in mind that it must be single family and priced under $160,000.   You can also choose a HUD home!  Be aware that some sellers may have had bad experiences with the down payment assistance programs and may not want to allow you to use them.  This typically occurs when the agent and lender are not familiar with the program, or the buyer enters into a contract PRIOR to applying for the program and meeting the program requirements.  I would also ask that the lender you are working with begin to process your loan application as soon as possible to avoid delays.

4. Upon contract acceptance, please make sure that the Dekalb County "Non Displacement Agreement" is a part of the contract paperwork.  Dekalb county must have this original form or they will not process your application.  You should immediately schedule your inspection.  You have to have your inspector come out BEFORE the Dekalb County inspector.  So basically your home will go through two inspection processes.  Let me tell  you, if the home is not right, they will not give you the funds.  The inspector will expect the home to have all utlities on and they will give you a list of items that need to be done in order for the home to pass the inspection.  You will have to have the items completed, if the seller will not before Dekalb County will come back out to make sure the items are done and give your home a "pass".  They will not release your down payment money until the home has passed inpection.

5. Your contribution - Buyers must have at least 1% of their own money in the transaction.  this requirement is typically fulfilled when you give your earnest money and pay for your appraisal.

Well once you make it through these steps congratulations!! You should be heading to the closing table!!  and if you are searching for a home in the Dekalb County area feel free to contact me, I would be happy to help you!