Down-Payment Assistance Program

Down-Payment Assistance Program is a forgivable loan for homebuyers in Canton, Georgia. The City of Canton Down-Payment Assistance Program provides up to $12,500 in DPA to qualified first-time homebuyers purchasing a primary residence within the city limits of Canton, Georgia. The program is delivered as a 5-year deferred, 0% interest, forgivable soft second mortgage and may be applied toward up to 50% of the lender-required down payment and up to 100% of allowable closing costs. The Canton City Council approved an amendment on November 16, 2023 raising the maximum award from $10,000 to $12,500. Income tiers track HUD AMI for the Atlanta-Sandy Springs-Roswell MSA, allowing the program to serve 30%/50%/80% AMI households. Funded with CDBG and City of Canton appropriations. Up to $12,500 (raised from $10,000 by City Council in November 2023) in down payment and closing-cost assistance for first-time homebuyers purchasing within Canton city limits. Covers up to 50% of the lender-required down payment and up to 100% of allowable closing costs. Structured as a 0% interest, 5-year deferred forgivable soft second mortgage — fully forgiven if borrower remains owner-occupant for the 5-year affordability period. Funding comes from CDBG / City of Canton General Fund.

Down-Payment Assistance Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale, transfer, refinance (cash-out), or loss of owner-occupancy before the 5-year affordability period ends. The assistance is recorded in Subordinate (2nd lien) position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Down-Payment Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Eligible if applicant has not owned a home in the past 3 years. On credit, the program states: Determined by first-mortgage lender. A homebuyer education course is required, through HUD-approved homebuyer education provider (8-hour course). Residency requirement: Property must be within the city limits of Canton, GA and occupied as primary residence. Citizenship or immigration status: U.S. citizen or qualified alien. First-time homebuyer required (no ownership in past 3 years). Total annual household income cannot exceed 80% of HUD AMI for the Atlanta-Sandy Springs-Roswell MSA based on family size. Property must be located within the Canton, GA city limits and used as primary residence. Buyer must complete HUD-approved homebuyer education. 5-year owner-occupancy requirement. Funded with CDBG and/or City general funds; subject to annual appropriation.

Down-Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Household income at or below 80% of HUD AMI for Atlanta-Sandy Springs-Roswell MSA. By household size approximately: 1p $60,200; 4p $85,950; 8p $113,550. Lower 30%/50% AMI tiers also exist for smaller households (e.g., 1p extremely-low-income tier ~$21,500). For a family of four in Canton the 80% AMI income limit is approximately $86,000 (per City Council reporting; verify current limits). The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Down-Payment Assistance Program caps the purchase price at $1.4M. Eligible property types include Single-Family, Townhome, and Condo. New construction is eligible. Manufactured homes are not eligible.

Down-Payment Assistance Program serves homebuyers purchasing in Canton, Georgia. The program targets specific areas: Properties must be inside the City of Canton city limits (Cherokee County).

Applications for Down-Payment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Application submitted directly to the City of Canton; funds reserved once buyer is under contract on an eligible Canton property. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.