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The Georgia Dream Start-393 program is a forgivable second mortgage offered by the Georgia Department of Community Affairs (DCA) to provide eligible homebuyers with up to $12,500 in down payment assistance. This program is specifically designed to make homeownership more accessible for first-time buyers and those purchasing in targeted counties by providing funds that do not need to be repaid if certain conditions are met. To qualify, applicants must meet credit score, income, and home purchase price limits, and complete a homebuyer education course. This guide outlines the 2025 eligibility requirements, application process, and key benefits of the Start-393 initiative.
The Start-393 program is a form of down payment assistance (DPA) that acts as a silent second mortgage. A forgivable second mortgage is a loan that is secured by the property behind the primary mortgage. The unique feature of this type of loan is that it is gradually forgiven over a set period, typically five years, meaning the borrower is not required to make monthly payments on it, and the debt is completely erased if they maintain the home as their primary residence for the full term. The Start-393 program provides a maximum of $12,500, which can be a decisive factor in helping buyers cover their initial cash-to-close costs. This initiative is part of the broader Georgia Dream Homeownership Program, aimed at strengthening communities by promoting affordable housing opportunities.
Qualifying for the Start-393 program requires meeting specific criteria set by the DCA. These standards are in place to ensure the assistance reaches its intended audience.
The table below provides a simplified example of how income and sales price limits can vary (based on 2024 DCA guidelines, subject to change in 2025).
| County Type | Household Size: 1-2 | Household Size: 3+ | Maximum Sales Price (Example) |
|---|---|---|---|
| Non-Targeted | $102,200 | $117,500 | $406,000 |
| Targeted | $122,600 | $141,000 | $506,000 |
The application for the Start-393 program is handled through a participating DCA-approved mortgage lender. You cannot apply directly to the DCA. The process begins when you get pre-approved for a Georgia Dream first mortgage. Your loan officer will guide you through the simultaneous application for the Start-393 assistance. The funds are applied at closing, directly reducing the amount of cash you need to bring. These funds can typically be used for the down payment, closing costs, and prepaid items like property taxes and homeowners insurance. It is crucial to understand that the Start-393 assistance is a lien on your property until it is forgiven, which has implications if you sell or refinance before the forgiveness period ends.
The primary benefit of the Start-393 program is clear: it significantly lowers the barrier to entry for homeownership. However, buyers must be aware of the program's stipulations to avoid potential pitfalls.
The major benefit is the grant-like nature of the funds after the five-year forgiveness period. This can represent a substantial financial boost. Furthermore, the program encourages financial responsibility through its required education component. The main consideration involves the recapture clause. If you sell, rent out, or refinance your home before the five-year period elapses, you may be required to repay a prorated portion of the assistance. The loan also becomes due in full if the property ceases to be your primary residence.
Prospective buyers should focus on three key actions: confirm their eligibility with a DCA-approved lender, budget for the long-term costs of homeownership beyond the down payment, and understand the terms of the forgivable mortgage agreement. By taking these steps, you can effectively leverage the Start-393 program to achieve your goal of owning a home in Georgia.
