Down Payment Assistance Compared
Georgia Dream vs 3.5Home and 5Home: Down Payment Help in Georgia
Georgia Dream is the state's down payment assistance program, run by the Georgia Department of Community Affairs (DCA). 3.5Home and 5Home are the down payment assistance options UHome offers on FHA loans. Both can cover most or all of the FHA down payment. They differ on who qualifies, how much help you get, and when you pay it back.
Know this first: UHome Mortgage is not a Georgia Dream participating lender, so UHome does not originate Georgia Dream loans. We explain it here because it is the program most Georgia buyers ask about, and because the right answer for you may be Georgia Dream through another lender.
The Short Answer
Which One Fits You
- Georgia Dream usually fits a first time buyer, or a buyer in a Targeted Area, whose household income and purchase price fall under DCA's limits and whose savings after closing fit DCA's cap. Its assistance is a 0% second mortgage with no monthly payment.
- 3.5Home or 5Home is worth comparing for an FHA buyer with a credit score of 640 or higher who is over a Georgia Dream limit or owns another property. Their own requirements are confirmed during review.
- Neither may fit a buyer with a credit score below 640. FHA allows 3.5% down starting at 580, without assistance.
A loan expert can check your income, savings and credit against both programs and tell you which column you belong in, including when that is a Georgia Dream lender rather than us.
No impact to your credit score
The State Program
How Georgia Dream Works
Georgia Dream pairs a 30 year fixed rate first mortgage with a second mortgage that covers the down payment. The first mortgage can be FHA, VA, USDA or a conventional loan without mortgage insurance (80% maximum loan to value). DCA sets the interest rate, usually publishing it weekly, and buys the loan from the participating lender. You apply through a participating lender, never directly with DCA.
How much help
- Standard: 5% of the purchase price or $10,000, whichever is less. Open to every eligible buyer.
- PEN: 6% of the purchase price or $12,500, whichever is less, for public protectors, educators, healthcare workers and active military.
- CHOICE: 6% of the purchase price or $12,500, whichever is less, for a household with a member living with a disability.
How you pay it back
The assistance is a second mortgage at 0% interest with no monthly payment. It is not a grant and it is not forgiven. The full amount comes due when you sell, refinance or transfer the home, and DCA's consumer FAQ also lists no longer living in the home as a trigger.
Who qualifies
- Credit: a middle credit score of at least 640 (660 on a manufactured home).
- First time buyer: no ownership of a principal residence in the last three years, unless you buy in a Targeted Area or are a qualifying veteran.
- Your own money: at least $1,000 of your own funds or a documented gift.
- Savings cap: liquid assets after closing of no more than $20,000 or 20% of the sales price, whichever is greater. Retirement accounts are not counted.
- Homebuyer education: a course completed within 12 months before closing. DCA's online course costs $50.
- The home: a one unit primary residence. Two to four unit homes are not eligible.
- Income and price: under DCA's limits for the county, shown in the next section.
What it adds to the timeline
After the participating lender's underwriter approves the loan, DCA reviews it for program compliance, which DCA says takes at least an additional 10 business days. The rate is reserved for 75 days. DCA also notes that its loans may carry a federal recapture tax for nine years from closing; ask the participating lender how it applies to you.
Sources: Georgia Department of Community Affairs, Georgia Dream program page and Standard matrix, effective July 8, 2026; Georgia Dream Seller Guide, Revision 2026-7-8; DCA consumer and lender FAQs. Read November 2, 2026.
2026 Limits
Georgia Dream Income and Price Limits
Effective July 8, 2026. Your household income and the purchase price both have to fall under the limit for the county where you buy.
| Area | Price limit | Income, 1 or 2 people | Income, 3 or more |
|---|---|---|---|
| Atlanta metro, 24 counties | $625,000 | $137,555 | $158,188 |
| Athens area | $525,000 | $118,152 | $135,875 |
| Rest of Georgia | $475,000 | $101,700 | $116,955 |
The Atlanta metro group: Barrow, Bartow, Carroll, Cherokee, Clayton, Cobb, Coweta, Dawson, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Heard, Henry, Jasper, Newton, Paulding, Pickens, Pike, Rockdale, Spalding and Walton. The Athens area: Clarke, Madison, Oconee, Oglethorpe and Morgan. Source: DCA, Maximum Income and Sales Prices by Program Type, effective July 8, 2026. DCA updates these limits periodically.
The UHome Options
How 3.5Home and 5Home Work
For eligible buyers using FHA financing with a credit score of 640 or higher, UHome offers two assistance options. Both are calculated as a percentage of the purchase price, and each comes in a repayable version and a forgivable version.
3.5Home
3.5% of the purchase price toward your down payment, which is FHA's minimum required investment. You still bring closing costs and prepaid items.
5Home
5% of the purchase price, split as 3.5% toward your down payment and 1.5% toward closing costs. The larger option when cash to close is the obstacle, not the down payment alone.
Two versions
The repayable version is a second lien you pay back on its terms. The forgivable version is forgiven only when every program condition is met. We walk through both before you choose.
Terms for each version, including any rate, term and forgiveness conditions, are confirmed in writing during your review. Meeting the 640 minimum does not guarantee eligibility. Qualifying for FHA does not automatically mean qualifying for assistance.
For the full program description, see first time home buyer loans in Georgia.
Side by Side
Georgia Dream vs 3.5Home and 5Home, Line by Line
| Criteria | Georgia Dream | 3.5Home and 5Home |
|---|---|---|
| Where you get it | Only through a DCA participating lender | Through UHome Mortgage |
| Can UHome do it | No; UHome is not a participating lender | Yes |
| Loan types | FHA, VA, USDA, conventional without mortgage insurance | FHA only |
| Assistance | 5% of price or $10,000, whichever is less; PEN and CHOICE 6% or $12,500 | 3.5% of price (3.5Home) or 5% of price (5Home) |
| What it can cover | Down payment and closing costs | 3.5Home: down payment. 5Home: down payment plus 1.5% toward closing costs |
| Repayment | 0% second mortgage, no monthly payment, not forgivable, due on sale, refinance or transfer (DCA also lists moving out) | Repayable version or forgivable version; terms confirmed during review |
| Credit score | Starts at 640 (660 manufactured home) | Starts at 640 |
| First time buyer | Required, unless in a Targeted Area or a qualifying veteran | Confirmed during review |
| Income limit | Yes; Atlanta metro $137,555 or $158,188 | Confirmed during review |
| Price limit | Yes; Atlanta metro $625,000 | Confirmed during review; FHA county loan limits apply to the loan amount |
| Savings cap after closing | $20,000 or 20% of price, whichever is greater | Confirmed during review |
| Your own money | At least $1,000 | Closing costs and prepaids beyond any 5Home credit; minimum contribution confirmed during review |
| Homebuyer education | Required | Confirmed during review |
| Rate on the first mortgage | Set by DCA, usually weekly | Pricing for an FHA loan with assistance, quoted during review |
| Extra time to close | At least 10 business days for DCA's review | No DCA review; any program approval time confirmed during review |
| Georgia Dream terms from DCA, effective July 8, 2026, read November 2, 2026. 3.5Home and 5Home terms are subject to eligibility, underwriting approval and program guidelines, and may change. | ||
On a phone, scroll sideways to see both columns.
Worked Example
One $300,000 FHA Purchase, Four Ways
A buyer purchases a $300,000 home in Georgia with an FHA loan. FHA's minimum down payment is 3.5%, or $10,500. Here is how much of the cash each option covers.
| Option | Assistance | How it applies |
|---|---|---|
| Georgia Dream Standard | $10,000 | $10,000 toward the $10,500 |
| Georgia Dream PEN or CHOICE | $12,500 | $10,500 down, $2,000 to closing |
| 3.5Home | $10,500 | $10,500 down |
| 5Home | $15,000 | $10,500 down, $4,500 to closing |
- Georgia Dream Standard caps at $10,000 because 5% of $300,000 is $15,000. The buyer brings at least $1,000 of their own money, which covers the last $500 of the down payment, plus the rest of the closing costs.
- PEN or CHOICE caps at $12,500 because 6% is $18,000. The buyer still brings at least $1,000 of their own money.
- 3.5Home covers the full $10,500. The buyer brings closing costs and prepaid items.
- 5Home covers the $10,500 and $4,500 of closing costs. The buyer brings the rest.
Illustration only, not an offer, a quote or an approval. Amounts are calculated on a hypothetical $300,000 purchase price and depend on the actual price and on eligibility. Closing costs, prepaid items, rates and payments are left out on purpose and vary by loan. Assistance that must be repaid is a lien on your home, not savings. Georgia Dream amounts from DCA, effective July 8, 2026.
What the example shows. At this price the two programs put about the same money toward the down payment. The differences that decide it are the limits, the repayment terms and the rate on the first mortgage. A buyer over the Georgia Dream income limit cannot use it at any price, and a buyer under it should compare both rates before choosing.
Other Routes
Other Ways to Cover the Cash to Close
Gift funds. On FHA loans, a gift from a family member, an employer or labor union, a close friend with a documented interest, a charitable organization or a government homeownership program can count toward the down payment. The gift needs a signed letter and a paper trail. Gifts over $5,000 count toward Georgia Dream's savings cap.
Seller credits. A seller can agree to pay part of your closing costs, within limits set by the loan program. Seller money can never count toward FHA's 3.5% minimum down payment. It is negotiated in the contract, so ask your agent early.
Many buyers combine a gift or a seller credit with assistance. Your loan expert can show you which combinations your loan allows.
Georgia Only
What Every Georgia Purchase Adds
An attorney closes it. Georgia requires a licensed attorney to handle the closing when a security deed is signed, whichever assistance you use.
The intangible recording tax. Georgia charges $1.50 for every $500 of a long term loan secured by real estate, capped at $25,000 of tax. On the example's FHA loan of $289,500 plus the 1.75% upfront mortgage insurance premium, that is about $885. It is usually passed to the buyer as a closing cost. Ask your closing attorney how it applies to any second mortgage used for assistance.
Sources: Supreme Court of Georgia, In re UPL Advisory Opinion 2003-2; O.C.G.A. 48-6-61; Georgia Department of Revenue Rule 560-11-8; HUD Handbook 4000.1.
When Neither Fits
Other Paths Worth a Look
- FHA loans in Georgia, if your score sits between 580 and 639 and you can bring the 3.5% yourself.
- Conventional loans, if your credit is strong and 3% down for eligible first time buyers works better.
- The Second Chance, if a past credit event is the thing standing in the way.
- First time home buyer loans, for every program side by side.
Questions, Answered
Georgia Dream and 3.5Home Questions
Does UHome Mortgage offer Georgia Dream?
No. Georgia Dream loans are made only through participating lenders approved by the Georgia Department of Community Affairs, and UHome Mortgage is not on that list. UHome offers down payment assistance on FHA loans, called 3.5Home and 5Home. If Georgia Dream fits you better, DCA publishes its list of participating lenders on its website.
What is the difference between Georgia Dream and 3.5Home or 5Home?
Georgia Dream is a state program run by the Georgia Department of Community Affairs. It pairs a 30 year fixed first mortgage at a rate DCA sets with a 0% second mortgage for the down payment, and it has income limits, purchase price limits and, for most buyers, a first time buyer rule. 3.5Home and 5Home are UHome's assistance options on FHA financing for buyers with a credit score of 640 or higher. 3.5Home provides 3.5% of the price toward the down payment, and 5Home provides 5%, split as 3.5% toward the down payment and 1.5% toward closing costs.
How much down payment assistance does Georgia Dream give in 2026?
Under DCA's published terms effective July 8, 2026, Georgia Dream Standard provides 5% of the purchase price or $10,000, whichever is less. The PEN option, for public protectors, educators, healthcare workers and active military, and the CHOICE option, for a household with a member living with a disability, provide 6% of the price or $12,500, whichever is less.
What are the Georgia Dream income limits in metro Atlanta?
For the 24 county Atlanta metro area, DCA's limits effective July 8, 2026 are $137,555 in household income for 1 or 2 people and $158,188 for 3 or more, with a maximum purchase price of $625,000. The rest of Georgia outside the Athens area is $101,700 and $116,955, with a $475,000 price limit. DCA updates these figures, so confirm them before you shop.
Do I have to be a first time buyer for Georgia Dream?
Usually. DCA counts you as a first time buyer if you have not owned your principal residence in the last three years. The rule is waived if you buy in a Targeted Area, which is a county or census tract DCA designates, and for certain qualifying veterans. Even then, you cannot own other residential real estate at closing.
Is Georgia Dream down payment assistance forgivable?
No. DCA describes it as a non forgivable mortgage, not a grant. It is a 0% second mortgage with no monthly payment, and the full amount is due when you sell, refinance or transfer the home. DCA's consumer FAQ also lists no longer living in the home as a trigger.
What credit score do I need for Georgia Dream or 3.5Home?
Both start at 640. Georgia Dream requires a middle credit score of at least 640 on FHA, VA, USDA and conventional loans, and 660 on a manufactured home. 3.5Home and 5Home require a credit score of 640 or higher on FHA financing. FHA itself allows a 3.5% down payment starting at 580, but neither assistance option goes that low.
Can I use 3.5Home or 5Home if I earn too much for Georgia Dream?
Georgia Dream's income limits, purchase price limits, savings cap and first time buyer rule belong to Georgia Dream. 3.5Home and 5Home are separate programs with their own requirements, which we confirm during your review. Buyers who are over a Georgia Dream limit are the ones who most often compare the two.
How long does Georgia Dream add to closing?
After the participating lender's underwriter approves the loan, DCA reviews it for program compliance, and DCA says that takes at least an additional 10 business days, longer in the spring and summer. The Georgia Dream rate is reserved for 75 days. Plan your contract dates with that review in mind.
Which is better, Georgia Dream or 3.5Home and 5Home?
It depends on where you sit against the limits. If your income and price fall under the Georgia Dream caps, you are a first time buyer or buying in a Targeted Area, and your savings after closing fit the cap, Georgia Dream's 0% deferred second is hard to beat. If you are over a limit or own another property, compare 3.5Home and 5Home, and 5Home if closing costs are the obstacle. In both cases, compare the rate on the first mortgage, not only the assistance.
Sources and Editorial Review
- Georgia Department of Community Affairs, Georgia Dream program page (effective July 8, 2026)
- DCA, Georgia Dream Standard matrix (v. 2026-7-8)
- DCA, Maximum Income and Sales Prices by Program Type and MSA County (effective July 8, 2026)
- DCA, Georgia Dream Loan Program FAQs
- DCA, Georgia Dream participating lender list
- HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook (Update 18, August 12, 2026)
- Georgia Rules, Chapter 560-11-8, Intangible Recording Tax
Reviewed by Coby Pegues, NMLS 2556341. November 2026.
Ready When You Are
Find Out Which Column You Are In
Share your income, savings, credit and the price range you are shopping. We tell you whether 3.5Home or 5Home fits, and if Georgia Dream through a participating lender fits better, we tell you that too.
- Clear next steps
- Options explained before you proceed
Disclosures
General mortgage disclosure
This page is for educational purposes and is not a commitment to lend, an offer of credit, or an approval. All loans are subject to credit approval, income and asset verification, property eligibility, program availability and underwriting approval. Examples are illustrations only.
Down payment assistance disclosure
3.5Home and 5Home are down payment assistance options offered in connection with FHA financing and are available only to borrowers who meet all applicable eligibility requirements, including a minimum credit score of 640. Assistance amounts are calculated as a percentage of the purchase price. 3.5Home provides assistance of 3.5% toward the down payment. 5Home provides assistance of 5%, applied as 3.5% toward the down payment and 1.5% toward closing costs. Each option is available in a repayable structure, in which the assistance is secured by a subordinate lien and must be repaid according to its terms, and in a forgivable structure, in which forgiveness is conditional and requires that all program conditions be satisfied. Assistance does not cover all funds required to close. Meeting the minimum credit score does not guarantee eligibility, approval, or availability. Program terms, availability, and funding are subject to change or discontinuation at any time without notice.
Georgia Dream disclosure
Georgia Dream is a program of the Georgia Department of Community Affairs, financed through the Georgia Housing and Finance Authority. UHome Mortgage is not a Georgia Dream participating lender, does not originate Georgia Dream loans, and is not affiliated with or endorsed by DCA or GHFA. Georgia Dream figures on this page come from DCA's published materials effective July 8, 2026 and change from time to time; confirm current terms with a participating lender or DCA.
Licensing information
Coby Pegues, NMLS 2556341 · UHome Mortgage LLC, Company NMLS 2559453
Licensed in Georgia, Alabama, and Texas.
Equal Housing Opportunity
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