Georgia Dream - Lender FAQs

Our Georgia Dream program provides opportunities for first-time homebuyers to receive funding – up to $10,000 Standard and $12,500 PEN/ CHOICE – for down payments and closing costs. The success of this program is due to connections with many individuals, including lenders.

The following FAQ provides essential facts for lenders to continue to help thousands of Georgians reach their goals of purchasing a home.

  • What is the FHA Amendatory Clause and when is it not required?

    FHA requires the buyer, buyer’s agent, seller, and seller’s agent to sign FHA Amendatory Language which states that the buyer is not legally required to go through with a home sale if the appraised value comes back lower than the price listed in the sales contract. The Amendatory Clause is not required on HUD Real Estate Owned (REO) sales, FHA’s 203k mortgage program, sales where the seller is Fannie Mae, Freddie Mac, the Department of Veterans Affairs, Rural Housing Services, other Federal, State and local government agencies, mortgagees disposing of REO assets, or sellers at foreclosure sales.

  • Is a dry closing permitted by DCA (not funding on the same date as the closing date)?

    DCA requires a wet closing (funding the same date as the closing).

  • Which closing documents does Georgia Dream permit for electronic signature?

    Examples of documents which DocuSign/eSign are eligible: initial and final 1003, letters of explanation, initial and final disclosures, 4506T, and mortgage verifications. Examples of Documents which DocuSign/eSign are ineligible: Georgia Dream program forms, note, security instrument, FHA 92900a, or any document that requires a notary.

  • How is the Georgia Dream Program funded?

    The Georgia Dream Program is funded via Bond issuance from revenue via bond sales. The only Georgia Dream program that is currently federally funded is the Hardest Hit Program, but the last date for application reservations is June 30, 2020.

  • Do Georgia Dream charge loan level pricing adjustments (LLPAs) and Early Payment Default (EPD) fees for loans that enter into a forbearance agreement after the purchase date?

    Currently, Georgia Dream does not charge LLPAs or EPD fees for loans that enter into a forbearance agreement after the purchase date.

  • How does Georgia Dream view a borrower who has a documented payment plan with IRS to repay non-lien delinquent federal tax obligation?

    The delinquent tax debt may remain unpaid with the following:

    • Document valid repayment agreement with the IRS
    • Documents to support the borrower has paid a minimum of 3 consecutive payment according to the executed agreement. Prepayment is not permitted.
    • The monthly payment must be included in the borrower’s qualifying ration.
    • Public record check to verify the borrower does not have any federal liens.