You do not need 20% down to buy a house in Atlanta. That number scares people out of the market every day, and most of them could qualify right now with far less.
FHA loans start at 3.5% down. Conventional loans go as low as 3%. VA loans require nothing down at all. And Atlanta has some of the best down payment assistance programs in the Southeast, with the city offering up to $20,000 in zero-interest deferred loans that most buyers never even hear about.
Below is a complete breakdown of what you actually need at every price point, by loan type, and by neighborhood. No guessing, no vague ranges.
Quick Takeaways
- Minimum down payment: 0% (VA), 3% (conventional), 3.5% (FHA). You do not need 20%.
- Median Atlanta home ($388K): As little as $11,640 down with a conventional 3% loan.
- Georgia Dream program: Up to $10,000 in down payment assistance for qualifying buyers.
- City of Atlanta program: Up to $20,000 in zero-interest deferred loans, forgivable after 10 years.
- Total cash needed: Down payment + closing costs (2-5%) + 2-3 months reserves. Budget $20K-$35K minimum for a median-priced home.
Down Payment by Loan Type
The amount you need depends entirely on the loan program. Here are the actual dollar amounts at four common Atlanta price points.
Down Payment by Loan Type and Price
| Loan Type | Min % | $300K | $388K | $500K | $750K |
|---|---|---|---|---|---|
| Conventional | 3% | $9,000 | $11,640 | $15,000 | $22,500 |
| Conventional | 5% | $15,000 | $19,400 | $25,000 | $37,500 |
| FHA | 3.5% | $10,500 | $13,580 | $17,500 | $26,250 |
| VA | 0% | $0 | $0 | $0 | $0 |
| USDA | 0% | $0 | $0 | N/A* | N/A* |
*USDA loans have income and location limits. In metro Atlanta, eligible areas are mostly in outer counties like Cherokee, Forsyth, Barrow, and Walton. USDA also has purchase price caps that exclude higher-priced homes.
FHA vs. Conventional: FHA loans have a lower credit score requirement (580 vs. 620) but come with mortgage insurance for the life of the loan. Conventional loans let you drop PMI once you hit 20% equity. For buyers with credit above 700, conventional 3-5% down is usually the better long-term deal.
The Real Cost: Down Payment + Closing Costs + Reserves
The down payment is not the only cash you need at the closing table. As Atlanta real estate agents, we see buyers get blindsided by closing costs and reserve requirements all the time. Here is the full picture.
Total Cash Needed - Median Atlanta Home ($388,000)
Cash reserves = 2 months of full mortgage payment (P&I + tax + insurance). Many lenders require this as proof you can cover payments if income is disrupted. In today's market, 62% of Atlanta sellers are offering concessions that can cover part or all of closing costs.
Atlanta Down Payment Assistance Programs
This is where Atlanta has a real advantage over most cities. There are multiple programs that can cut your out-of-pocket costs by $10,000-$20,000, and most Atlanta first-time buyers never apply because they do not know these exist.
Invest Atlanta / City of Atlanta First-Time Homebuyer Program
Up to $20,000 in zero-interest deferred loans for down payment and closing costs. The loan is forgivable after 10 years if you stay in the home. Must be a first-time buyer, purchase within Atlanta city limits, and complete a HUD-approved homebuyer education course. Income limits apply.
investatlanta.com/homebuyersGeorgia Dream Homeownership Program
Up to $10,000 in down payment assistance, available statewide. Comes as a second mortgage at 0% interest with no monthly payments, due when you sell, refinance, or move. Income limit: $82,800 for 1-2 person household, $96,600 for 3+. Must be a first-time buyer or buying in a targeted area. Minimum credit score: 640.
dca.ga.govEmployer-Assisted Housing Programs
Atlanta is home to 17 Fortune 500 companies, and many large employers offer housing assistance as a benefit. Companies like Delta, Home Depot, UPS, and Cox Enterprises have offered relocation and housing purchase assistance. Check with your HR department before assuming you need to cover everything out of pocket.
Stacking Programs
In some cases, you can combine multiple programs. A buyer using Georgia Dream ($10,000) with an FHA loan (3.5% down) on a $300,000 home would need just $10,500 down, minus $10,000 in assistance = $500 out of pocket for the down payment. Add seller concessions for closing costs and you could close with very little cash.
Down Payment by Neighborhood
Median home prices from Atlanta REALTORS Association, Q4 2025. Down payment amounts are for the down payment only and do not include closing costs or reserves. For a full rent-vs-buy comparison by neighborhood, see our rent vs. buy breakdown.
Should You Put 20% Down? Not Always.
The 20% rule exists to avoid private mortgage insurance (PMI). But PMI is not the financial disaster people think it is, and waiting to save 20% can actually cost you more.
The Cost of Waiting to Save 20%
Compare that to $150/month in PMI over the same period ($7,200 total). The math is clear: PMI costs $7,200 while waiting costs nearly $194,000 in rent, missed equity, and missed appreciation. As long as you can afford the monthly payment comfortably, buying with less than 20% down is almost always the better financial move.
How Long Does It Take to Save?
Here is a savings timeline for the median Atlanta home ($388,000) at different monthly savings rates. This is for the down payment only.
Savings Timeline - $388,000 Home
| Monthly Savings | 3% ($11,640) | 5% ($19,400) | 10% ($38,800) | 20% ($77,600) |
|---|---|---|---|---|
| $500/mo | 23 months | 39 months | 78 months | 155 months |
| $1,000/mo | 12 months | 20 months | 39 months | 78 months |
| $1,500/mo | 8 months | 13 months | 26 months | 52 months |
| $2,000/mo | 6 months | 10 months | 20 months | 39 months |
With down payment assistance ($10K-$20K), these timelines shrink significantly. A buyer saving $1,000/month who qualifies for $10,000 in Georgia Dream assistance could have enough for a 3% down payment in under 2 months.
Want to Know Exactly How Much You Need?
Every buyer's situation is different. Tell us your target neighborhood, price range, and financial picture. We'll connect you with lenders who specialize in low-down-payment and assistance programs in Atlanta.
Common Down Payment Mistakes
As Atlanta realtors, we see the same mistakes from first-time buyers every month. Here are the five that cost people the most money or delay their purchase unnecessarily.
- Waiting for 20% when 3-5% is enough. We showed the math above. Paying $150/month in PMI is vastly cheaper than spending 4+ years renting while you save. If you can afford the monthly payment, do not let PMI stop you.
- Not applying for assistance programs. Thousands of Atlanta buyers qualify for $10,000-$20,000 in help and never apply. The application process is straightforward. If your income is under $96,600 (household of 3+), you should check Georgia Dream eligibility before doing anything else.
- Forgetting about closing costs and reserves. Having $12,000 saved for a 3% down payment is great, but you also need $8K-$19K for closing costs and $5K+ in reserves. Budget for the full picture, not just the down payment.
- Raiding retirement accounts. Pulling from a 401(k) triggers a 10% penalty plus income tax on the withdrawal. A $20,000 withdrawal can cost you $7,000+ in taxes and penalties. First-time buyers can withdraw up to $10,000 from an IRA penalty-free, but you still owe income tax. Explore every other option first.
- Not understanding gift fund rules. Family members can gift you money for a down payment, but lenders require a gift letter and documentation proving it is not a loan. Deposits from undocumented sources in the 60 days before your application can delay or kill your approval. Plan gift transfers early.
Frequently Asked Questions
How much is a down payment on a house in Atlanta?
The minimum down payment on an Atlanta home depends on your loan type. Conventional loans require 3-5% ($11,640-$19,400 on the median $388,000 home). FHA loans require 3.5% ($13,580). VA loans require 0% for eligible veterans. Many buyers also qualify for Georgia's down payment assistance programs that cover up to $20,000.
Can I buy a house in Atlanta with no money down?
Yes, if you qualify for a VA loan (active military, veterans, or eligible surviving spouses) or a USDA loan (limited to certain outer metro areas like parts of Cherokee, Forsyth, and Barrow counties). Both offer 0% down payment options. You will still need cash for closing costs, though some sellers in today's market are offering concessions to cover those.
What is the Georgia Dream program?
Georgia Dream is a state-run homeownership program that offers below-market interest rates and up to $10,000 in down payment assistance for qualified first-time buyers. Income limits apply (currently $82,800 for a household of 1-2, $96,600 for 3+). The home must be your primary residence and you must complete a homebuyer education course.
How much are closing costs in Atlanta?
Closing costs in Atlanta typically range from 2% to 5% of the purchase price. On a $388,000 home, that is $7,760 to $19,400. Closing costs cover title insurance, attorney fees, appraisal, recording fees, and prepaid taxes and insurance. In the current market, 62% of sellers are offering concessions that can offset some or all of these costs.
Is 3% down enough to buy a house?
Yes. Conventional loans from Fannie Mae (HomeReady) and Freddie Mac (Home Possible) allow 3% down for qualified buyers. On a $388,000 Atlanta home, that is $11,640. You will pay private mortgage insurance (PMI) of roughly $100-$200/month until you reach 20% equity, but the math often works out better than waiting years to save a full 20%.
What credit score do I need for an FHA loan in Atlanta?
FHA loans require a minimum credit score of 580 for 3.5% down, or 500-579 for 10% down. Most Atlanta lenders prefer 620+ for smoother approval. FHA loans are popular with first-time buyers because of the lower credit requirements, but they do require mortgage insurance for the life of the loan regardless of equity.
Can I use a gift for my down payment?
Yes. Conventional, FHA, and VA loans all allow gift funds for down payments. The gift must come from a family member, fiance, or domestic partner (FHA also allows close friends and employers). You will need a signed gift letter confirming the money is not a loan. The donor may also need to provide bank statements showing the source of funds.
How long does it take to save for a down payment in Atlanta?
At the median Atlanta home price of $388,000, saving $500/month gets you to 3% down ($11,640) in about 23 months. Saving $1,000/month gets you there in under 12 months. For 10% ($38,800), plan on 39 months at $1,000/month. Using down payment assistance programs can cut your savings timeline significantly.
"I thought I needed $80,000 saved to buy in Atlanta. The team connected me with the Georgia Dream program and an FHA lender, and I closed on a home in Smyrna with $14,000 out of pocket. I was paying more in rent than my mortgage is now."
Taylor M.
First-time buyer, used Georgia Dream + FHA in Smyrna
Ready to find out what you actually need to get started?
Sources
- Invest Atlanta - First-time homebuyer down payment assistance programs, eligibility, and application details. investatlanta.com
- Georgia Department of Community Affairs - Georgia Dream Homeownership Program details, income limits, and lender network. dca.ga.gov
- FHA.gov / HUD - Federal Housing Administration loan requirements, mortgage insurance premiums, and property standards. hud.gov
- VA.gov - VA home loan eligibility, funding fee structure, and Certificate of Eligibility requirements. va.gov
- Atlanta REALTORS Association - Median home prices and inventory data for metro Atlanta neighborhoods. atlantarealtors.com
- Freddie Mac - Home Possible loan program details and primary mortgage market survey data. freddiemac.com
All home prices based on Q4 2025 data. Loan program details are current as of February 2026. Program terms, income limits, and eligibility requirements may change. Verify current details with a licensed lender.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Down payment requirements, assistance program terms, and loan eligibility vary by lender and program. Consult with a licensed mortgage professional before making any real estate decisions. The Luxury Realtor Group provides real estate advisory services and is not a lender or financial institution.