First Time Home Buyer Programs in Savannah, GA: Local Grants and Assistance 2026

DreamMaker provides down payment and closing cost assistance as a 0% interest, 30-year deferred loan — meaning no monthly payment and no interest ever accrues. Repayment is triggered only when the home is sold, refinanced, or the buyer moves out. The standard benefit is up to $7,500. In designated redevelopment areas within Savannah city limits — specific zones where the City has prioritized reinvestment — the benefit can reach up to $50,000 under enhanced program terms. That $50,000 figure is not widely known and represents a transformational assistance level for qualifying buyers in targeted areas.

The program is administered by the City of Savannah's Housing and Neighborhood Services department. To use DreamMaker, buyers must work with a DreamMaker-approved lender — not simply a lender who has heard of the program, but one who has specifically executed DreamMaker transactions. The program has income limits, purchase price limits, and property eligibility requirements that should be verified with an approved lender or directly with the City for the specific transaction year.

Key eligibility factors: Purchase must be within Savannah city limits. First-time buyer requirement (no primary residence owned in past 3 years). Income limits apply — verify with approved lender. Property must be the buyer's primary residence. Buyer must complete a HUD-approved homebuyer education course.

Georgia Dream is the Georgia Department of Community Affairs' primary homeownership assistance program — available statewide through approved lenders and representing the single most-used first-time buyer assistance program in Georgia. For 2026, the standard Georgia Dream benefit is $10,000 in down payment assistance as a 0% interest, 30-year deferred second mortgage. The PEN (Public Employee/Nurse/Military) enhanced benefit provides $12,500 to qualifying public employees, nurses, licensed healthcare workers, active duty military, veterans, and others in qualifying professions.

Georgia Dream pairs with a first mortgage from an approved lender — FHA, VA, USDA, or conventional — and the assistance applies to the down payment and closing costs. The deferred structure means no monthly payment on the second mortgage. The $1,000 minimum personal contribution is the only required cash from the buyer beyond the assistance (and this $1,000 can sometimes be covered by seller concessions in the negotiated purchase agreement, reducing actual out-of-pocket to near zero for some transactions).

Income limits for Chatham County in 2026 are approximately $79,000 for 1-2 person households and $92,000 for 3+ person households. The 8-hour HUD-approved homebuyer education course (available through eHome America for ~$99 online) is required. Buyers must work with an approved Georgia Dream lender — a list is available at dca.ga.gov.

Who qualifies for PEN ($12,500): Licensed nurses and registered nurses; active duty military and veterans; teachers and public school employees; public employees at state, county, or municipal level; licensed healthcare workers in qualifying roles. Verify current PEN eligibility criteria with a program lender or at dca.ga.gov.

Georgia Peach Plus is a packaged program that pairs an FHA first mortgage with a down payment assistance second mortgage — designed to address the specific gap that many first-time buyers face when FHA's 3.5% down payment requirement still exceeds their available savings. The program provides 3.5% of the purchase price in down payment assistance for the standard tier (covering FHA's minimum) or 4% for the enhanced PEN-equivalent tier. This is in addition to a $10,000 or $12,500 second mortgage for closing costs.

Georgia Peach Plus is particularly useful for buyers who find Georgia Dream's purchase price limits workable but still struggle to assemble the FHA down payment. The stacked structure — FHA first mortgage, Peach Plus down payment assistance, and Peach Plus closing cost assistance — can produce a near-zero out-of-pocket closing for qualifying buyers at prices within the program's limits.

Verify current Georgia Peach Plus program details, income limits, and purchase price limits at dca.ga.gov or through an approved program lender, as program terms and availability can change between years.

The VA Home Loan Guarantee is the most financially advantageous home loan program available in the United States for those who qualify — and it's consistently underused by veterans who don't know they have access to it. The program provides: zero down payment on primary residence purchases of virtually any amount; no private mortgage insurance (PMI) requirement regardless of down payment amount; below-market interest rates (typically 0.25–0.5% lower than comparable conventional loans); no prepayment penalties; and limited closing cost restrictions. The VA funding fee (typically 2.15–3.3% of loan amount for first use, reducible if the veteran has a service-connected disability) is the primary upfront cost — and it can be rolled into the loan amount rather than paid as cash at closing.

VA eligibility is based on service history rather than income or credit score — though lenders impose their own credit minimums (typically 620–640). Active duty service members, veterans with honorable discharge, surviving spouses, and certain Reserve and National Guard members qualify. Obtain your Certificate of Eligibility (COE) from va.gov before approaching lenders — having it in hand demonstrates eligibility and streamlines the loan application process.

In Savannah, Hunter Army Airfield's military community makes VA loan utilization particularly common and well-understood among local lenders. However, not all VA-approved lenders have deep VA execution experience — seek lenders with specific Savannah-area VA loan closing volume.

No first-time buyer requirement: VA loan benefits can be used by veterans regardless of prior homeownership history. The program is not limited to first-time buyers — it's available for any primary residence purchase by an eligible veteran.

USDA Rural Development Guaranteed Loans provide zero down payment financing for properties in USDA-designated eligible areas — primarily rural and suburban communities that haven't yet reached the urban density thresholds that trigger ineligibility. For Savannah-area buyers, USDA loan eligibility is a property address question, not an income or location-of-buyer question: many addresses in Effingham County (Rincon, Guyton, Springfield, Clyo) and some Bryan County addresses qualify, while most Chatham County (Savannah city and its immediate suburbs) do not.

USDA income limits are more generous than most buyers expect — households earning up to $110,000–$135,000+ may qualify depending on household size and specific county, making USDA accessible to middle-income families, not just low-income buyers. The annual guarantee fee of 0.35% of the outstanding loan balance is charged annually — significantly lower than FHA mortgage insurance on most loan-to-value scenarios, making USDA less expensive long-term for buyers who hold the loan for several years.

The critical verification step: check any specific address at the USDA eligibility map (eligibility.sc.egov.usda.gov) before searching for homes with USDA in mind. USDA has reclassified some previously eligible areas as population has grown — addresses in Rincon that were eligible two years ago may no longer qualify as the city has grown. Verify by exact address, not by general area.

Key requirements: Property must be in a USDA-eligible area. Must be a primary residence. Buyer must not own another adequate dwelling in the area. 640 credit score for automated underwriting. Income limits vary by county and household size — verify at usda.gov or with a USDA-approved lender.

FHA loans are the most commonly used first-time buyer loan product nationally, and they're the standard pairing for Georgia Dream, DreamMaker, and Georgia Peach Plus assistance. The FHA program allows 3.5% down payment (with a 580+ credit score) or 10% down (with a 500–579 score), with income limits determined by debt-to-income ratios rather than absolute income caps, and with generally more flexible underwriting than conventional loans for buyers with shorter credit history or recent credit events.

The ongoing cost of FHA loans is mortgage insurance premium (MIP) — an upfront premium of 1.75% of the loan amount (typically rolled into the loan) plus an annual MIP of 0.55–0.85% depending on loan term and LTV. For FHA loans with less than 10% down, MIP continues for the life of the loan — a meaningful long-term cost that makes refinancing into conventional financing a common strategy once the homeowner builds sufficient equity. At 10%+ down, MIP cancels after 11 years.

For older Savannah homes — particularly in the Historic District and older neighborhoods — FHA appraisals include additional property condition requirements that conventional appraisals don't. Lead-based paint, structural integrity, HVAC function, and safety requirements must be met. Sellers of older properties sometimes prefer conventional offers over FHA for this reason, which can create offer strategy considerations for FHA buyers.