Homebuyer lesson · Georgia
Metro Atlanta vs. Savannah vs. Augusta: what a first home really costs
Side-by-side look at Georgia Dream limits, local down payment help, closing taxes, property tax and flood insurance in metro Atlanta, Savannah and Augusta, with worked numbers at three prices.
Start with the limits, because they change at the county line
When buyers compare cities, they usually start with home prices. I'd start one step earlier, with the program limits, because they decide which homes you can use assistance on in the first place. Georgia Dream sets limits by area:
| Area | Max price | Income, 1 to 2 people | Income, 3 or more |
|---|---|---|---|
| Metro Atlanta (24 counties, including Fulton, DeKalb, Cobb, Gwinnett, Clayton, Henry and Cherokee) | $625,000 | $137,555 | $158,188 |
| Savannah (Chatham County) | $475,000 | $101,700 | $116,955 |
| Augusta (Richmond and Columbia counties) | $475,000 | $101,700 | $116,955 |
Income counts every adult in the household, not just the people on the loan. If you live with a parent or an adult child who works, their pay counts too. The full county list is on the income limits page.
How far PEN reaches at different prices
PEN pays 6% of the price or $12,500, whichever is less. Six percent equals $12,500 at about $208,333, so every home above that price gets the same $12,500. Below it, the amount shrinks with the price, but so does your down payment. Here are example prices only, using an FHA loan with 3.5% down:
| Example price | FHA down payment | PEN amount | PEN left for closing costs | Intangible tax on base loan |
|---|---|---|---|---|
| $340,000 | $11,900 | $12,500 | $600 | about $986 |
| $260,000 | $9,100 | $12,500 | $3,400 | $753 |
| $200,000 | $7,000 | $12,000 | $5,000 | $579 |
The pattern matters more than the exact figures. At $340,000, PEN barely covers the down payment, and closing costs come mostly from you or the seller. At $200,000, there's $5,000 of assistance left for closing costs. Financing FHA's upfront premium raises the intangible tax slightly; our closing tax guide shows how.
Local help is very different in each city
Metro Atlanta
Atlanta has the most local programs, and the most rules about mixing them. Inside the City of Atlanta, Invest Atlanta's ATL HomeNOW offers up to $20,000, forgivable after 10 years as your main home, with a $325,000 loan cap. Invest Atlanta says its incentives can't be combined with Georgia Dream, so it's one or the other. Fulton County's Homeownership Program offers up to $22,500 at 80% of area median income with a $347,000 price cap on existing homes. Gwinnett's Homestretch offers up to $10,000, and Clayton County offers $7,500, or $10,000 for public safety, health care and education workers.
Savannah
The City of Savannah's DreamMaker program offers up to $30,000, or up to $50,000 on housing the city helped develop, as a 2% deferred loan over 30 years. The home must be inside Savannah city limits, and inspections are required. City employees below department-head level can add up to $15,000 through a separate employee program. No county-level program for unincorporated Chatham County was found.
Augusta
Augusta Housing and Community Development runs a homeownership assistance program for low- to moderate-income first-time buyers. Its program manual says $1,000 to $10,000, while the city's web page still says up to $5,000, so confirm the current amount with the department. No program was found for Columbia County (Evans, Martinez, Grovetown).
Costs that follow the address
Property tax
Every Georgia home is assessed at 40% of fair market value, then taxed at the combined millage of the county, the school system and, inside a city, the city. That means two homes at the same price can carry different tax bills a mile apart. Ask your agent or the county tax commissioner for the current bill on any home you're serious about. Then file your homestead exemption, since local exemptions and the HB 581 cap vary by county and city.
Flood insurance
Coastal Chatham County has more land in high-risk flood zones than inland metros. Under federal rules, if a home with a government-backed loan sits in a Special Flood Hazard Area (zones beginning with A or V), the lender requires flood insurance. FEMA notes that standard homeowners policies typically don't cover floods. When a flood policy is bought along with a new mortgage, the usual 30-day waiting period doesn't apply. Ask for a flood zone check and an insurance quote before you finish your inspection period, not after.
Commute and housing type
Atlanta buyers often trade price for drive time, and condos and townhomes come into play. Georgia Dream allows condos and townhomes as one-unit homes. In Savannah's historic districts and Augusta's older neighborhoods, inspections on older homes matter, and Savannah's DreamMaker won't fund pre-1978 homes with defective paint.
A simple way to compare your own options
- Write down your household income and size, then check it against the limit for each county you're considering.
- Pick a realistic price in each area and run the PEN math above.
- List the local programs you'd qualify for, and whether each can be combined with Georgia Dream.
- Get a property tax figure and, near the coast, a flood zone answer for real listings.
- Add the closing taxes and your attorney's fee estimate.
Military buyers comparing Columbus, Hinesville and Augusta can read our guide to buying near Georgia's bases. Wherever you land, the next step is the same: check your eligibility, then talk to a participating lender about real listings.
Questions we hear a lot
Are Georgia Dream limits higher in Atlanta than Savannah?
Yes. The 24-county Atlanta area allows a $625,000 price and $137,555 income for 1 to 2 people. Chatham County falls under the statewide limits of $475,000 and $101,700.
At what price does PEN reach its $12,500 cap?
About $208,333. Six percent of any higher price is more than $12,500, so PEN stays at $12,500 from there up.
Can I combine ATL HomeNOW with Georgia Dream?
No. Invest Atlanta says its incentives can't be used with Georgia Dream, so buyers in the City of Atlanta compare the two and choose one.
Do I need flood insurance in Savannah?
If the home has a government-backed loan and sits in a high-risk flood zone, yes. Lenders can require it elsewhere too. Check the flood zone before your inspection period ends.
