Buying your first home in Alpharetta can feel out of reach if you think you need 20 percent down. The good news is, you have several ways to get in with far less. Many first-time buyers in North Fulton use low or no down payment loans, add down payment assistance, and structure closing costs so cash-to-close fits their budget.
This guide breaks down your best options, what it takes to qualify, how assistance changes the math, and real cash examples at Alpharetta price points. You will also get a simple checklist to move from research to keys in hand. Let’s dive in.
Low and no down payment basics
FHA loans: 3.5 percent down
FHA loans allow you to buy with as little as 3.5 percent down if you meet credit and debt-to-income guidelines. Many first-time buyers choose FHA because it is flexible on credit and allows gift funds. You will pay mortgage insurance that includes an upfront premium and an annual premium. The home must be your primary residence and meet FHA property standards.
VA loans: often 0 percent down
If you are an eligible veteran, active-duty service member, or certain surviving spouse, VA financing can offer 0 percent down with no private mortgage insurance. There is a VA funding fee unless you are exempt, and you must plan to live in the home as your primary residence. Many North Fulton buyers use the VA benefit to purchase with minimal cash.
USDA loans: location specific
USDA Rural Development loans offer 0 percent down for eligible buyers and properties. Many suburban parts of North Fulton, including much of Alpharetta, do not fall in USDA-eligible areas. Always confirm property eligibility before you count on this option.
Conventional 3 percent options
Programs like Fannie Mae HomeReady and Freddie Mac Home Possible allow as little as 3 percent down for eligible buyers. These options target low to moderate incomes and allow gifts for down payment. You will have private mortgage insurance until you reach 20 percent equity, and credit standards are usually tighter than FHA.
State and local help in Alpharetta
Georgia Dream and state DPA
The Georgia Department of Community Affairs administers homeownership programs that often include down payment assistance paired with a first mortgage. Assistance is usually a second mortgage or forgivable loan that helps cover down payment and closing costs. Income and purchase price limits apply and vary by county and household size. Contact Georgia DCA or a participating lender to confirm current details for Fulton County.
Fulton County and Alpharetta programs
Local governments sometimes fund first-time buyer help, such as grants or deferred second mortgages. These programs are tied to funding cycles, so dollar amounts and availability change. Check the Fulton County Department of Community Development and the City of Alpharetta Community Development or Housing pages for active programs and timelines. Funding is often limited and first come, first served.
Bank, employer, and nonprofit help
Some banks and mortgage companies offer their own grants or credits that reduce your cash-to-close. Employers in the North Fulton tech and corporate corridor may include homebuying assistance in relocation or retention packages. Local HUD-approved housing counseling agencies and nonprofits sometimes provide small grants or matched savings. Ask lenders and your HR team what is available now, then layer those options with state or county assistance if allowed.
Eligibility and trade-offs
Common eligibility rules
- First-time buyer status often means you have not owned a primary residence in the last three years.
- Many programs have household income limits tied to area median income.
- State and county assistance can cap the purchase price by county.
- Most assistance requires you to live in the home as your primary residence.
- Credit score and debt-to-income standards vary by loan type and lender.
Key trade-offs to weigh
- Mortgage insurance: FHA requires an upfront and annual premium. Conventional 3 percent requires PMI that you can usually cancel when you reach 20 percent equity. VA has no PMI but may have a funding fee.
- Interest rate vs. costs: Lender credits or seller concessions can cover some costs, but the rate may be higher. Compare total cost over the time you expect to own the home.
- Property rules: Some programs restrict property types or require the home to meet habitability standards. USDA requires a rural location.
- Resale and recapture: Some down payment assistance is forgivable over time. Others are second mortgages that are due when you sell or refinance.
- Stacking: You can often combine a conventional 3 percent first mortgage with state or county assistance. Confirm with your lender and each program.
What funds can you use
Most programs allow a mix of sources if documented properly:
- Personal savings
- Gift funds from family
- Employer assistance or grants
- Retirement funds from a 401(k) or IRA, subject to plan rules and possible tax impacts
- Nonprofit grants or matched savings
Alpharetta cost examples
Use these examples to see how down payment percentages translate to cash-to-close. These are illustrative, not current price quotes. Closing costs typically run about 3 percent of the purchase price unless a lender provides a quote for your scenario.
Scenario A: Condo or townhome at $350,000
- FHA at 3.5 percent down: Down payment of $12,250. Estimated closing costs of $10,500. Total cash-to-close is about $22,750 before prepaid items. The FHA upfront mortgage insurance premium can be financed.
- Conventional 3 percent: Down payment of $10,500. Closing costs of $10,500. Total about $21,000, with PMI until you reach 20 percent equity.
- VA at 0 percent down: No down payment. Estimated closing costs of $10,500 plus any VA funding fee, which can be financed.
Scenario B: Entry single-family at $550,000
- FHA at 3.5 percent down: Down payment of $19,250. Closing costs of $16,500. Total about $35,750.
- Conventional 3 percent: Down payment of $16,500. Closing costs of $16,500. Total about $33,000.
- Conventional 20 percent for comparison: Down payment of $110,000. Closing costs of $16,500. Total about $126,500.
Scenario C: Move-up single-family at $850,000
- FHA: Availability depends on current FHA county loan limits. Many higher-priced homes exceed the limit for Fulton County.
- Conventional 3 percent: Down payment of $25,500. Closing costs of $25,500. Total about $51,000.
- Conventional 20 percent: Down payment of $170,000. Closing costs of $25,500. Total about $195,500.
How assistance changes the math
When you add down payment assistance, your cash-to-close can drop by the amount of assistance that is applied to down payment or closing costs. For example, on a $550,000 purchase, a 3 percent assistance amount would cover $16,500 of your cash need in the conventional 3 percent scenario above. Always confirm purchase price caps, income limits, and any required personal contribution.
Property realities in Alpharetta
Condos, townhomes, and HOA dues
If you are targeting a lower price point, you may look at condos or townhomes. HOA dues count toward your debt-to-income ratio, so they affect how much you can borrow. For FHA or VA financing, condo communities may need project approval, so ask your lender to confirm.
Inspection and appraisal
Your lender will order an appraisal. An inspection is strongly recommended so you understand the home’s condition and budget for repairs. If you are buying an older property, certain repairs may be required for loan approval.
Loan limits and timing
FHA loan limits can affect whether FHA is an option at higher prices in Fulton County. Down payment assistance programs have application windows and limited funding, so timing matters. Coordinate your loan, assistance application, and home search with your lender and agent.
Your step-by-step checklist
- Get pre-approved with a local lender
- Ask for side-by-side quotes for FHA, VA if you are eligible, and conventional 3 percent options like HomeReady or Home Possible. Request a Loan Estimate that clearly shows cash-to-close.
- Confirm down payment assistance
- Contact Georgia DCA for current Georgia Dream offerings and Fulton County purchase price and income limits. Check Fulton County and City of Alpharetta pages for local programs and deadlines.
- Ask about bank grants and employer help
- Talk to multiple lenders about any current bank-sponsored credits. Check with your employer’s HR about relocation or homeownership assistance.
- Document your funds
- Line up bank statements, gift letters if family will help, and any employer or nonprofit award letters. If you consider using retirement funds, speak with a financial professional about impacts.
- Align property type and budget
- If you are leaning toward condos or townhomes, verify HOA dues and whether the community meets FHA or VA guidelines. Confirm that properties match any program requirements.
- Meet a housing counselor
- A HUD-approved counselor can help with budgeting, credit, and selecting the right assistance.
- Estimate full costs
- Beyond down payment, plan for closing costs, prepaid taxes and insurance, escrow deposits, and any reserves your lender may require.
- Watch the calendar
- Assistance programs are often first come, first served. Coordinate application timing with your lender so funds are reserved when you are under contract.
Bringing it together
You do not need 20 percent down to buy in Alpharetta. With the right loan program, layered assistance, and a smart strategy on closing costs, you can reduce your upfront cash and still compete for the home you want. The key is to get precise numbers early, confirm eligibility, and target properties that fit your financing.
If you want calm, local guidance from search to keys, reach out to Rhonda Shell. Our team helps you compare options, time applications, and negotiate a clean contract so you can move with confidence in North Fulton.
FAQs
What is a first-time buyer under most programs?
- Many programs consider you a first-time buyer if you have not owned a primary residence in the past three years, even if you owned before that.
Are USDA loans available in Alpharetta?
- USDA loans require the property to be in an eligible rural area, and much of Alpharetta is typically outside USDA eligibility, so confirm property status before you rely on this program.
How much should I budget for closing costs in Alpharetta?
- A common planning range is about 3 percent of the purchase price for lender, title, and prepaid items, unless your lender provides a detailed estimate for your situation.
Can I combine Georgia Dream with a 3 percent conventional loan?
- Many buyers pair a conventional 97 percent first mortgage with state or county assistance, but you must confirm program rules and lender allowance for your exact combination.
Do Alpharetta condos work with FHA or VA financing?
- Some do, but condo projects may need FHA or VA approval and HOA dues will affect your qualifying, so ask your lender to verify the community early.
How do seller concessions reduce my cash-to-close?
- Seller-paid concessions can cover certain closing costs and prepaid items within program limits, which lowers the cash you need at closing, though it can affect your negotiated price or rate structure.
