DeKalb County Down Payment Assistance Program

Unlocking Homeownership: Your Guide to the DeKalb County Down Payment Assistance Program

You can almost smell the fresh paint of your future living room. Yet, for many first-time buyers in Georgia, the down payment feels like a wall higher than Stone Mountain. That’s where the DeKalb County Down Payment Assistance Program steps in, offering up to $10,000 to bridge the gap between renting and owning. In the next few minutes, you’ll learn how the program works, who qualifies, and what steps transform application forms into front-door keys.

Why Down Payment Help Matters in Metro Atlanta

Metro Atlanta home prices have risen roughly 72 % since 2015, based on multiple market reports. At the same time, wages grew at a more modest pace. That mismatch leaves even diligent savers scrambling for the standard 3–5 % down payment lenders often require. For a $300,000 starter home, that’s $9,000 to $15,000—before closing costs.

DeKalb County recognized the squeeze and responded with targeted relief. The county’s initiative isn’t just a feel-good program; it’s a strategic investment in neighborhood stability, increased tax revenue, and reduced commuter sprawl.

What Is the DeKalb County Down Payment Assistance Program?

The DeKalb County Down Payment Assistance Program (sometimes shortened to “DeKalb County DPA”) is a locally funded initiative administered by the DeKalb Housing Authority. The program:

• Provides up to $10,000 in deferred, zero-interest assistance for down payment and allowable closing costs.
• Targets first-time homebuyers, defined by HUD as someone who hasn’t owned a home in the past three years.
• Serves properties located within DeKalb County limits, excluding the City of Atlanta portions.

Unlike many statewide grants, the assistance arrives as a second lien. You don’t make monthly payments, and—spoiler alert—there’s a path to forgiveness (more on that below).

How Do I Qualify for DeKalb County Down Payment Assistance?

Eligibility centers on three pillars—income, credit, and property location. Nail these, and you’re halfway home.

1. Income & Credit Requirements

• Household Income: Must fall at or below 80 % of Area Median Income (AMI). For a family of four in 2024, that’s roughly $77,120. Check the DeKalb Housing Authority site for yearly updates.
• Credit Score: A minimum 640 FICO is typical, though participating lenders occasionally approve scores down to 620 with strong compensating factors.
• Debt-to-Income (DTI): Keep it at or below 43 %. A lower DTI strengthens your overall loan file and can expedite underwriting.

2. Eligible Properties & Locations

• Property Types: Single-family homes, townhomes, and approved condos.
• Occupancy: Must be owner-occupied within 60 days of closing; no rentals or flips.
• Price Cap: $350,000 for existing homes; $400,000 for new construction (2024 figures).
• Geography: Any ZIP within DeKalb County, except city annexes outside county governance.

How Much Money Can I Receive from DeKalb County DPA?

The program awards up to $10,000. In practice, most buyers use the full amount, which typically covers:

1. Minimum down payment as set by the first-mortgage product—often FHA, VA, or conventional 97.
2. Part of the closing costs (appraisal, lender fees, prepaid escrows).

Because the funds appear as a zero-interest, deferred second lien, your monthly mortgage payment doesn’t change. The assistance only becomes due if you sell, refinance, or move out within a designated period (usually five years). Stay in the home beyond that window, and the lien is forgiven—poof, like it never existed.

Is the DeKalb County Program Forgivable?

Yes, but with guardrails. The assistance operates on a declining balance schedule: 20 % is forgiven every 12 months over five years. Sell in year three? You repay 40 % of the original amount. Stay five years and a day? The county releases the lien entirely. The structure encourages neighborhood stability without trapping homeowners indefinitely.

Step-by-Step Application Roadmap

The paperwork stack looks intimidating, yet the process flows smoothly when you know the sequence. Here’s the roadmap local lenders use:

1. Homebuyer Education: Complete an eight-hour HUD-approved course—online or in person. Save the certificate!
2. Pre-Approval: Choose a lender authorized by DeKalb Housing. They’ll underwrite your first mortgage and the assistance simultaneously.
3. Submit DPA Packet: Income docs, purchase contract, and education certificate go to the county for review.
4. Home Inspection: Required even if your main loan type doesn’t mandate it. Minor repairs must be addressed before closing.
5. Final Approval & Closing: The county wires funds to the closing attorney. You sign two notes—first mortgage and DPA lien—collect the keys, and snap the obligatory porch selfie.

Case Snapshot: Maria, a DeKalb schoolteacher making $58,000, partnered with her fiancé Jalen, a graphic designer earning $42,000. Their combined income sat just under the 80 % AMI threshold. With $8,500 in personal savings and $10,000 from the program, they secured a $285,000 Decatur townhome in March 2024. Had they waited six more months, the same unit would have listed for $305,000 based on current median upticks—proof that timing the program matters.

Can I Combine the DeKalb Program with Other Grants?

Absolutely. Strategic stacking can slash your out-of-pocket costs to near zero. Common pairings include:

• Georgia Dream: Up to $7,500 statewide assistance (or $10,000 for public service workers or households with a disabled member). DeKalb’s funds typically sit in third lien position when combined.
• FHLB Atlanta: The “First-time Homebuyer Product” offers up to $12,500 on a 5-to-1 match basis.
• Employer-Assisted Housing (EAH): Emory University and several hospital systems provide grants for staff who buy close to work.

Work closely with an experienced lender; layering programs involves multiple underwriters, distinct timelines, and specific lien subordination requirements.

Common Mistakes to Avoid

• Opening new credit lines after pre-approval. That 10 % off at the furniture store can torpedo your DTI.
• Skipping the inspection. The county will not disburse funds if health-and-safety defects remain unresolved.
• Choosing a non-approved lender. Only those on the DeKalb Housing Authority list can originate a loan paired with county funds.
• Missing document deadlines. The county review board meets bi-weekly; late submissions push your closing back 14 days or more.

Cost of Waiting: What Rising Home Prices Mean for First-Time Buyers

Real estate analysts at Georgia State University forecast a 5.2 % price increase for DeKalb County homes over the next 12 months. Delay a $300,000 purchase, and you’ll pay about $15,600 more next year—plus higher property taxes. Contrast that with the program’s $10,000 grant; in effect, waiting could cost you $25,600.

The takeaway? If your financial ducks align, locking in today’s prices with county assistance often beats playing the “I’ll save a little more” game.

FAQ

Does the DeKalb County Down Payment Assistance Program run out of money?

Funds are allocated annually and can deplete by Q3. Applying early in the calendar year improves your odds.

Can I use the DPA on a duplex?

No. Only single-unit properties qualify. Duplexes, triplexes, and quads fall outside program guidelines.

What happens if I refinance within five years?

You must repay the remaining unforgiven balance, or request subordination—granted case-by-case.

Is there a penalty for paying off my first mortgage early?

No prepayment penalty exists. Early payoff still requires satisfying any unforgiven DPA balance if under five years.

How long does approval take?

Average timeline: 30–45 days, depending on how quickly you supply documents and schedule inspections.

Your Next Step: Turn Paperwork into Possibility

The DeKalb County Down Payment Assistance Program won’t magically fill itself out—but you’re not alone. Our team has guided hundreds of Georgia buyers through the maze of forms, classes, and inspections. If you’re ready to transform “someday” into move-in day, start with a five-minute pre-qualification call.

Schedule your call now or dial (404) 555-HOME. Let’s open the door together.