Georgia Dream - Lender FAQs

Lenders must set the proper expectation with all parties to include realtors, borrowers, and sellers. We require that all packages be submitted at least 5 business days in advance of closing. Lender must use the prescribed Underwriting Package Checklist and include all exhibits.  in addition to the exhibits, we then focus on key loan attributes are matching through the file. Here is a sample chart we use internally to compare loan attributes. When we see both the completed loan submission documents and loan attributes matching exactly, we are able to provide a 50% faster underwriting response and decisions.

Data Comparison

	Lender Approval	AUS/GUS	FHA LT, VA Loan Analysis, 1008	Final 1003	Prelim CD, Loan Estimate, Fees Worksheet
LTV/CLTV				N/A	N/A
Loan Amount
Sales Price
Appraised Value					N/A
Note Rate
Total Income					N/A
Total Expense Ratio				N/A	N/A
PITIA/Proposed Pmt
Funds Required to Close
Funds Available					N/A

Since Georgia does not have a legal separation process, the homebuyer may be eligible.  The homebuyer must provide evidence through a simple notarized document executed by the homebuyer and their estranged spouse they are both separated and that the estranged spouse will relinquish all rights and title to the prospective home being purchased.  Other criteria will apply to include, but not limited to, the borrower being a first-time homebuyer with no ownership interest in a marital property as their primary residence in the most recent three years.

There are 3 Georgia Dream programs.  Our first program, Georgia Dream Standard, is a down payment assistance program for first-time homebuyers with income limitations based on MSA/county and sales price limitation up to $425,000 or MSA/County maximums.  Georgia Department of Community Affairs (DCA) set the first mortgage interest rate, purchases and offers a 0% interest rate concurrent second mortgage as down payment assistance. 

Our second program, Georgia Dream Peach Plus, is a down payment assistance program for either first-time or recurring homebuyers with higher income and sales price limitations compared to the Standard Georgia Dream program. Sales price limitations up to $525,000 or MSA/county maximums.  Georgia Department of Community Affairs set the first mortgage interest rate which is slightly higher than the Georgia Dream Standard and offers a 0% interest rate concurrent second mortgage as down payment assistance. 

Our third program, Georgia Dream Peach Select program, is a Veterans Assistance loan program offering qualified military veterans an interest rate typically lower than market interest rates.   The sales price and income limitations apply and are the same as the Georgia Dream Stand program.  This program can not be used with the Georgia Dream Second Down Payment Assistance but can be stacked with another eligible down payment assistance program. 

To note, these may change occasionally and it is best to review our Seller Guide for the latest updates. 

• All 3 of our programs have income and sales price restrictions that are typically lower than the agencies since our programs a designed for low to moderate income borrowers. 
• We have a 640 minimum credit score requirement on all our loan programs. 
• Gifts are allowed but are restricted to a maximum of $5,000.  Assets after closing are restricted to the greater of $20,000 or 20% of the subject property purchase price or will be used in the purchase transaction. 
• The most recent three years tax transcripts are required as we use these, in part, to determine if the borrower has had a mortgage interest deduction in the past 3 years further indicating if the borrower(s) are first-time homebuyers. 
• Debt-to-Income ratios.  All three of our programs have variations on maximum debt-to-income ratios and we encourage lenders to review the specific program matrices for our debt-to-income ratios as they are driven by the borrower(s) credit scores.

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.

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

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.

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.

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

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.