Down-Payment Assistance Program

What is 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.

Do you have to pay it back?

Down-Payment Assistance Program is forgiven after 5 years, so a buyer 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.

Who qualifies?

Down-Payment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Where does it apply?

Down-Payment Assistance Program serves buyers purchasing in Canton, Georgia.

• The program targets specific areas: Properties must be inside the City of Canton city limits (Cherokee County).

How do you apply?

Applications for Down-Payment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved homebuyer education provider (8-hour course).

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application submitted directly to the City of Canton; funds reserved once buyer is under contract on an eligible Canton property, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.