Georgia Dream - Lender FAQs

Lenders must set the proper expectations with all parties to include realtors, borrowers, and sellers. We require that all packages and conditions be submitted according to our published Lender Online portal turn times.  All loan files must be completely underwritten and approved by the Lender with the only condition remaining as the DCA Georgia Dream commitment letter.  Please submit all conditions simultaneously.  A good rule of thumb is to submit your package 10 business days in advance of closing. Lenders must use the prescribed Underwriting Package Checklist and include all exhibits. In addition to the exhibits, we focus on key loan attributes that are consistent throughout 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 50% faster underwriting responses and decisions.

Data Comparison Example

	Lender Approval	AUS/GUS	FHA LT, VA Loan Analysis, 1008	Final 1003	Prelim CD, Loan Estimate, Fees Worksheet
LTV/CLTV	96.50/100.00	96.50/100.00	96.50/100.00	N/A	N/A
Loan Amount	$337,500	$337,500	$337,500	$337,500	$337,500
Sales Price	$350,000	$350,000	$350,000	$350,000	$350,000
Appraised Value	$350,000	$350,000	$350,000	$350,000	N/A
Note Rate	5.625%	5.625%	5.625%	5.625%	5.625%
Total Income	$8,650	$8,650	$8,650	$8,650	N/A
Total Expense Ratio	41.04%	41.04%	41.04%	N/A	N/A
PITIA/Proposed Pmt	$2,850	$2,850	$2,850	$2,850	$2,850
Funds Required to Close	$16,500	$16,500	$16,500	$16,500	$16,500
Funds Available	$17,000	$17,000	$17,000	$17,000	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:

1. 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. 
2. 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. 
3. 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 and/or matrices for the latest updates. 

• Conventional Loans:  Our maximum LTV/CLTV is 80.00%, require an AUS approval, and no manual underwriting is allowed. 
• 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.  Our matrices are found on the Georgia Dream Lenders: Documents & Downloads page.
• Fees:  Our program allows a maximum origination fee of 2% of the first mortgage base loan amount.  Please see our Seller Guide section 312 for details on all other fees. 
• Gifts & Assets:  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 unless those assets will be used in the purchase of the property. 
• Homebuyer Counseling:  All of our programs regardless of being a first-time homebuyer or recurring homebuyer require the applicant borrowers to attend and complete a HUD approved housing counseling agency course and provide a completion certificate within 12 months of closing. 
• Income Calculation Overlay:  We perform a separate income calculation for both occupant borrowers and non-occupant borrowers on our maximum household income limitation worksheets found on our Lenders: Documents & Downloads site.  This income calculation is separate from the effective income calculation the lender’s underwriter will use on the final 1003, AUS, FHA Loan Transmittal, VA Loan Analysis, or Fannie Mae 1008.   We consider the both the occupant borrowers’ and non-occupant borrowers’ collective incomes, number of household occupants, and then compare that to the annual maximum household income threshold allowed for the respective MSA/county.
• Maximum Incomes and Sales Prices:  All 3 of our programs have income and sales price restrictions found in our Seller Guide and are typically lower than the agencies since our programs are designed for low to moderate income borrowers.  
• Minimum Credit Scores:  We have a 640 minimum credit score requirement on all our loan programs for those with automated underwriting findings. For borrowers with no credit scores from any of the 3 repositories, we allow manual underwriting on FHA, VA, and USDA programs only with those agencies’ requirements. 
• Minimum Required Investment:  Our Standard Georgia Dream and Peach Select programs have a minimum $1,000 investment requirement from the borrower.  Our Georgia Dream Peach Select program for veterans has a $500 minimum required investment.  All 3 programs allow the minimum required investment to be a gift meeting either the mortgage insurer’s or agency’s gift requirements. 
• Number of Units:  1 unit only;  2 to 4 unit homes are ineligible. 
• Program Specific Forms:  All 3 of our programs have SF or Single Family specific forms that must be completed, in part or in whole, by the applicant borrowers, non-applicant household members, lender, and seller.  All Single Family forms are found on the Georgia Dream Lenders: Documents & Downloads page.  Lenders are encouraged to ingest these forms into their Loan Origination Systems for ease of access and footnote both the SF form number and version date which must match our latest Seller Guide. 
• Property Ownership:  Borrowers may not have ownership interest in other residential real estate and are required provide proof of a recorded quit-claim prior to closing of the subject loan.   We do allow an exception for active duty veterans relocating due to military orders and if any existing mortgage financing of their departure residence is not bond-financed assistance. 
• Property Types:  Manufactured homes are ineligible.  
• Tax Transcripts:  The most recent three years tax transcripts are required as we use these, in part, to both verify disclosed income and to determine if the borrower has had a mortgage interest deduction in the past 3 years further indicating if the borrower(s) meet the definition of a first-time homebuyers. 

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.