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Downpayment Assistance Program

Augusta, Georgia

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Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$253,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 5 years

What is Downpayment Assistance Program?

Downpayment Assistance Program is a forgivable loan for homebuyers in Augusta, Georgia.

  • The Augusta Housing & Community Development Department's Downpayment Assistance Program provides low-to-moderate-income first-time homebuyers in Augusta-Richmond County with a deferred-payment forgivable second-mortgage loan of $1,000-$10,000 for down payment and closing costs. Funded by HUD HOME Investment Partnerships and the American Dream Down-payment Initiative (ADDI). The 5-year forgivable lien is reduced 20% per year and fully forgiven at the 5th anniversary if owner-occupancy and residential use are maintained.
  • Deferred-payment forgivable loan from $1,000 up to $10,000 toward down payment and/or closing costs. The full balance is forgiven on the 5th anniversary of purchase if borrower continues to own and occupy the home and use remains residential. Within the 5-year period, 20% of the assistance amount is forgiven each year (1/5 per year). No monthly payments.
  • Funding comes from HUD HOME Investment Partnerships Program and American Dream Down-payment Initiative (ADDI); Federal.

Do you have to pay it back?

Downpayment Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Sale, transfer of title, conversion to non-residential use, failure to occupy as primary residence, or rental of the property during the 5-year affordability period triggers repayment of the unforgiven balance (full balance year 1, declining 20% each year). After year 5 the lien is released.
  • The assistance is recorded in 2 position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

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

The program requires

  • First-time homebuyer — with exceptions: First-time-homebuyer requirement waived for HUD-defined displaced homemakers and HUD-defined single parents (unmarried or legally separated with custody of one or more minor children, or pregnant).
  • The home is occupied as a primary residence
  • On credit: No published minimum FICO; lender underwriting and 'satisfactory credit history' required.
  • A completed homebuyer education course, through Department-approved homebuyer education program required prior to purchase; post-purchase counseling class also required prior to end of 5-year forgiveness period.
  • Residency: Property must be located within Augusta-Richmond County, excluding the City of Blythe.
  • Applicant must be a first-time homebuyer per HUD definition (no homeownership in last 3 years), or a HUD-defined displaced homemaker, or single parent (unmarried/legally separated with custody of one or more minor children, or pregnant). Court-ordered custody documentation required for surrogate family members. Applicant must have satisfactory income and employment, satisfactory credit history, and complete an AHCDD-approved homebuyer education course. Property must serve as sole place of residency (no rental, no commercial use). Annual residency documentation (utility bills) must be submitted during the 5-year affordability period. Post-homeowner counseling class required prior to end of forgiveness period.

The program excludes

  • Manufactured homes
  • Purchases above the $253,000 price cap
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Downpayment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

  • Total annual household income cannot exceed 80% of HUD Area Median Income for Augusta-Richmond County (FY2025): 1p $49,500; 2p $56,550; 3p $63,600; 4p $70,650; 5p $76,350; 6p $82,000; 7p $87,650; 8p $93,300. Household income includes wages, salaries, government and non-government benefits, court-ordered child support, alimony, and stock dividends of all household members listed on application (including employed children).
  • The limit applies to total household income, not only the borrower’s.
  • The program lists a maximum household size of 8.
  • 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?

Downpayment Assistance Program caps the purchase price at $253,000.

  • Eligible property types include One-unit single-family dwelling (attached or detached) designed for residential use, intended for owner-occupancy.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Downpayment Assistance Program serves buyers purchasing in Augusta, Georgia.

How do you apply?

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

  1. Take a homebuyer education course

    Required by the program, through Department-approved homebuyer education program required prior to purchase; post-purchase counseling class also required prior to end of 5-year forgiveness period..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Lender submits sales contract and applicant documentation to AHCDD after first mortgage application. AHCDD reviews and inspects the property; if approved, voluntary sales certification is sent to the seller and closing is scheduled with the closing attorney., and are subject to availability.

  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.

Learn this program

Short reads on how it works, in plain language. Free, no sign-up needed to read.

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Downpayment Assistance Program, explained

A short, free course on Downpayment Assistance Program: what it is, who it is for, how it is forgiven, where it applies and how to apply. Based on program data from July 2026. About ten minutes.

5 modules · About 10 minutes

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