Buyer aid out there

Real estate agents agree it’s a great time to buy a home if you can come up with a down payment.

Last week in ajchomes, we detailed some creative ways to get that down payment. This week we’ll introduce you to some down payment assistance programs — government-sponsored pots of money that are used to encourage people to buy homes. Whether it’s a state or local program, the goal is to create more home buyers.

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Photos by Christopher Oquendo / Special

Priscilla Ficklin-McCalop prepares for Christmas at her new home in Atlanta’s Chickamauga Heights. Ficklin-McCalop was able to buy the house for $124,375 after getting a loan for the down payment from the Atlanta Development Authority for 10 percent of the cost.

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Ficklin-McCalop also obtained a Home Atlanta mortgage assistance grant for 4 percent of the cost. If she stays in the house 10 years, that loan is forgiven. As a requirement for the assistance, she took a first-time home buyer’s class.

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Priscilla Ficklin-McCalop hangs out in the living room of her home in Atlanta, displaying her HomeFree USA class certificate.

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Julie Lottinger also went through a home buyer education class.

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The Northeast Georgia Down Payment Assistance Program gave Julie Lottinger a $3,500 grant to buy a townhome in Grayson.

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With downpayment assistance, Lottinger was able to buy a three-bedroom, 2½-bath townhome in Grayson for $142,900.

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“It’s an old cliché,” said Clyde Anderson of the Atlanta Development Authority, “but being a homeowner truly is the American dream. Homeownership is important because people feel differently about their community when they own a part of it.”

The ADA is just one of the many government agencies providing an incentive for homeownership. Many of these programs focus on first-time home buyers, and all of them have income ceilings. Some only provide money if you buy in a particular area or only if the home is new.

Some programs provide grants that don’t have to be repaid, while others provide soft second mortgages that are forgivable after a certain period of time.

It’s important to know that the programs are not bottomless sources of funds. When the money in a program runs out, there’s no more program until coffers are replenished.

“It boggles my mind when I talk to people who don’t know about these programs,” said June Harland of Coldwell Banker Residential Brokerage Sandy Springs. “This is free money. What are they waiting for?”

Taking a class

To take advantage of a down payment assistance program, you’ll have to attend a home buyer education seminar. Many of these seminars are free, and they are offered by nonprofit groups all over metro Atlanta.

Resources for Residents and Communities offers a schedule and curriculum similar to what you’ll find in the many agencies that provide home buyer counseling. Their twice-monthly classes are offered on both weekdays and weekends. The seminars provide a full day of information, with lunch included. Instructors go through everything from the importance of getting involved in your community to deciding whether owning a home is really the right thing to do in your situation.

Living her dream

Priscilla Ficklin-McCalop, 48, is co-host and executive producer of the “Pastor ‘Cute Lady’ Foster” radio program on AM 1480. She and Sindy Arnold, a Realtor for Coldwell Banker Residential Brokerage Sandy Springs, spent more than six months looking for a home that met Ficklin-McCalop’s criteria: all new, near downtown Atlanta and spacious enough for entertaining family and friends.

Her new home: On Oct. 1, Ficklin-McCalop moved into her four-bedroom, four-bath home in Chickamauga Heights, a community in Atlanta’s Mozley Park neighborhood just west of downtown. The one-story house with a full basement is about 50 years old, but it was completely rebuilt.

Buying the house: Ficklin-McCalop had researched down payment assistance programs over two years ago. She knew she’d need that kind of help to make home buying affordable. She took an all-day class with HomeFree USA, where the information includes managing your credit and the steps involved in buying a home. “The class was really useful, and they even talked about how to make your house look good once you moved in,” she said.

The bottom line

Here’s what it cost to buy Ficklin-McCalop’s new house:

Purchase price: $124,375

Down payment loan: $12,437 (10 percent of purchase price) from the Housing Opportunity Down Payment Assistance Program of the Atlanta Development Authority

Mortgage assistance grant: $4,707 (4 percent of the loan amount) from a Home Atlanta grant

Out-of-pocket costs: $1,500 to provide earnest money and pay for the inspection, insurance and title search. Note: The grant is a “gift;” the loan is forgivable after Ficklin-McCalop stays in her home for 10 years.

From the agent: Many of Arnold’s clients are first-time home buyers, so she works with them to understand how down payment assistance programs work. She particularly likes the home buyer counseling requirement. “I suggest they go there first because they’ll get a good overview of the buying process and if they have any credit challenges, the agency can assist them in addressing those.”

New townhome in Grayson

The money provided by a down payment assistance program was “huge” for flight attendant Julie Lottinger, 38. “I wouldn’t have been able to buy a home without that,” she said.

But with the aid of the Northeast Georgia Down Payment Assistance Program, Lottinger and her four teenaged daughters moved into a new townhome in Grayson just a few weeks ago.

Her new home: The townhome has three bedrooms and 2½ baths. There’s a large loft area on the second floor that works great as space for the girls. Lottinger loves the fact that the homeowners association will be taking care of all exterior maintenance.

Taking the class: Lottinger took her required home buyer education class from the Impact Group. “They had tons of information that would be great to have before you even start looking,” Lottinger said. “It’s free, and I tell everybody, ‘If you have the opportunity to go through something like that, do it.’ It’s just amazing. If more people got this kind of assistance, there’d be a lot more people buying homes instead of renting.

The bottom line

Here’s what it cost to buy Lottinger’s new townhome:

Purchase price: $142,900

Down payment grant: $3,500 from the Northeast Georgia Down Payment Assistance Program

Closing costs: $7,500 (paid by the builder, Richardson Housing Group)

Out-of-pocket costs: $500 to provide earnest money. She received $60 back.

The grant is a “gift” and does not have to be paid back.

From the builder: Northeast Georgia Down Payment Assistance Program began providing funds for homeowners in October, and so far 32 percent of Richardson Housing Group’s new contracts have been with buyers using the program. “Programs like this really provide help to someone who’s credit-worthy and has worked hard but doesn’t have the money for a down payment,” said Jason West, the company’s vice president. “It’s a great example of thinking outside the box.”

At a glance

Do your homework and find a down payment assistance program that offers help in your area. Here are just a few of the programs available.

State of Georgia

Georgia Dream

American Dream Downpayment Initiative

Barrow, Clarke, DeKalb, Forsyth, Fulton, Gwinnett, Hall, Jackson, Walton counties

Northeast Georgia Down Payment Assistance Program

City of Atlanta

Atlanta Development Authority

Clayton County

Clayton County Homebuyer Assistance Program, 770-478-7282, ext. 30

DeKalb County

Housing Authority of DeKalb County

Marietta, Cobb and Cherokee counties

Cobb Housing, Inc.

Gwinnett County

Gwinnett County HOMEStretch Program, 770-822-5190