Think you need 20 percent down to buy a home in Savannah? You do not. Many buyers in Chatham County use down payment assistance to bridge the gap, reduce cash to close, or cover closing costs. If you want to buy sooner and keep more savings in your pocket, you have options.
In this guide, you will learn how down payment help works in Georgia, which programs serve Savannah buyers, and how to qualify and apply. You will also find local resources and next steps. Let’s dive in.
What down payment help looks like
Deferred second mortgages
A deferred second, often called a soft second, is recorded at closing. You do not make a monthly payment on it. You typically repay it when you sell, refinance, transfer the home, or reach the end of a set term.
Forgivable second mortgages
Forgivable seconds are also recorded as a second lien. If you live in the home as your primary residence for a required period, the balance is forgiven over time. If you leave early, a portion may be due.
Grants and closing-cost help
Some local programs offer grants that do not require repayment. Funding is limited and rules vary. Many programs also allow funds to be used for closing costs in addition to the down payment.
How assistance pairs with loans
FHA loans
FHA allows assistance from approved sources, which can cover part or all of the 3.5 percent minimum down payment. FHA property standards and condo approval rules still apply, so check with your lender before making an offer.
VA and USDA loans
VA and USDA loans can offer 0 percent down for eligible borrowers and areas. Assistance may still help with closing costs or prepaid items. Lender rules vary, so confirm whether a second lien is allowed under the primary loan program.
Conventional options
Conventional programs, including options like HomeReady and Home Possible, allow low down payments and often accept approved subordinate financing. Mortgage insurance and underwriting can be more restrictive when you pair assistance with a small down payment, so your lender will map out your best fit.
Savannah and Georgia programs
Georgia Dream overview
The statewide Georgia Dream Homeownership Program is a common path for Savannah buyers. It typically provides assistance as a second mortgage with income and purchase price limits, plus required homebuyer education. Work with a participating lender to access the program and confirm current rules on amounts and eligibility. Review the latest details on the Georgia Dream Homeownership Program and ask a lender to confirm your fit.
- Learn more: visit the Georgia Dream Homeownership Program page on the Georgia Department of Community Affairs website.
Explore Georgia Dream program details
City and county resources
The City of Savannah’s Housing and Community Development division periodically offers purchase assistance using federal and local funds. Funding windows and amounts change, so check current offerings or call the office for guidance. The team can also direct you to local counseling and education.
Check City of Savannah Housing & Community Development
Nonprofit and lender options
Local nonprofits and community groups sometimes provide grants, matched savings, or special homeownership opportunities. Some banks and credit unions offer their own assistance or matched savings. Availability shifts, so ask your lender which options they support.
Who qualifies in Chatham County
Common eligibility rules
- Income limits based on Area Median Income, which vary by household size and program.
- First-time buyer requirement for some programs, often defined as no homeownership in the past three years. Some programs allow repeat buyers.
- Primary residence and owner-occupancy required.
- Completion of an approved homebuyer education course.
- Credit, debt-to-income, and underwriting must meet the primary loan and program standards.
Eligible property types
- Single-family homes and many townhomes are often eligible.
- Condos can be eligible but must meet the loan program’s project approval rules.
- Manufactured homes may be allowed if on a permanent foundation and classified as real property; rules vary by program and lender.
- Investment properties are typically not eligible.
How to apply: step-by-step
1) Get prequalified with a participating lender
A participating lender is required for programs like Georgia Dream. The lender will assess your credit, income, and debt, then confirm which assistance programs you can use. You can also review the state’s active lender network here.
Find Georgia Dream participating lenders
2) Complete homebuyer education
Many programs require an approved homebuyer education course and a certificate for closing. A HUD-approved counselor can guide you and help map your budget.
Search HUD-approved housing counseling agencies
3) Confirm program fit and reserve funds
Your lender will verify income and purchase price limits, property eligibility, and whether funds must be reserved before you go under contract. Some programs use limited funding on a first-come basis.
4) Shop for an eligible home
Your agent and lender will confirm property type, price, and location fit the program rules. This is especially important for condos and manufactured homes.
5) Submit documents and finalize underwriting
Prepare photo ID, Social Security numbers, pay stubs, W-2s or tax returns, bank statements, rental history, your education certificate, and your purchase contract. Quick responses help keep your place in line for limited funds.
6) Close and receive assistance
Assistance is delivered at closing as a second mortgage or grant, per the program. Your closing disclosure will show how the funds reduce your cash to close.
Timing and funding tips
- Funds can be limited. Apply early and stay document-ready to avoid delays.
- Programs update income limits and purchase price caps regularly. Ask your lender for the current thresholds.
- If using a second lien, confirm how it affects future refinancing or a sale.
Smart questions to ask your lender
- Is the assistance a deferred second, forgivable second, or a grant?
- What are the repayment triggers and timeline for forgiveness, if any?
- Will this assistance increase my mortgage insurance or affect my rate?
- Do I need program approval or a fund reservation before I make an offer?
- How does this pair with FHA, VA, USDA, or conventional options for me?
Avoid common pitfalls
- Be cautious of unsolicited offers that promise “free” money without a clear government, nonprofit, or lender affiliation. Verify with official sources or a participating lender.
- Do not assume a condo or manufactured home is eligible. Ask your lender to confirm project and property requirements early.
- Watch deadlines. Many local programs open and close application windows throughout the year.
Local resources to bookmark
- Georgia Dream Homeownership Program
- Georgia Dream participating lenders
- City of Savannah Housing & Community Development
- HUD-approved housing counseling search
Ready to take the next step? If you want a clear plan tailored to your budget and timeline, we can help you connect with participating lenders, focus your search on eligible homes, and navigate each step with confidence. Reach out to Homes by TLC - Taylor Lomprez to get started.
FAQs
What is the Georgia Dream program?
- Georgia Dream is the statewide homebuyer assistance program that commonly provides down payment or closing-cost help as a second mortgage, with income and purchase price limits and required homebuyer education.
Can I use assistance with a VA or USDA loan in Savannah?
- VA and USDA can allow 0 percent down; assistance may still help with closing costs, but you must confirm second-lien rules and eligibility with your lender.
Do I have to be a first-time buyer to qualify?
- Many programs target first-time buyers, defined as no ownership in the past three years, though some options allow repeat buyers under specific criteria.
Are condos or manufactured homes eligible in Chatham County?
- Some programs allow them, but you must meet loan program rules for condo approvals and manufactured home requirements, which can be more restrictive.
Will I have to repay the assistance?
- It depends on the structure: deferred seconds are repaid when you sell, refinance, or transfer; forgivable seconds are forgiven over time if you meet occupancy terms; grants usually do not require repayment.
How long does the process take?
- Timelines vary by program and funding availability; completing counseling early, staying document-ready, and working with a participating lender helps you move faster.
