Question 1

What does Georgia charge me at recording on a conventional investment loan?

Accepted Answer

Two separate taxes, and only one of them is small. The transfer tax under O.C.G.A. 48-6-1 is $1.00 on the first $1,000 of consideration plus 10 cents on each additional $100, which is 0.10 percent: on a $350,000 purchase, $350 ($1 on the first $1,000, plus 3,490 additional $100 units x $0.10 = $349). Payment to the superior court clerk, with actual consideration disclosed on the prescribed form, is a prerequisite to recording under 48-6-4. Then the intangible recording tax under 48-6-61: $1.50 for each $500 of the note's face amount, about 0.30 percent, on a note that is long-term, meaning under 48-6-60(3) that any part of principal falls due more than 62 months out. A 30-year conventional note is long-term, so a $280,000 note carries $840 (280,000 / 500 = 560 units x $1.50 = $840). Your security deed itself is exempt from transfer tax under 48-6-2(a)(1). Have the closing attorney show you both lines.

Question 2

How is my Georgia investment property assessed once I close?

Accepted Answer

At 40 percent of fair market value, capped for one year by what you paid. O.C.G.A. 48-5-7(a) assesses all taxable tangible property at 40 percent of fair market value on the local millage, so the effective rate is millage x 0.40: ten mills on a $350,000 property is $1,400 (350,000 x 0.40 x 0.010 = 1,400). Under 48-5-2(3) the transaction amount of the most recent arm's length sale is the maximum allowable fair market value for the next taxable year, which is a real benefit in year one and expires with that year. HB 581's floating homestead exemption does not reach investment property, because a property you do not occupy is not homestead property, and Fulton, Gwinnett, Cobb and DeKalb, their school districts, and the City of Atlanta opted out in any event. Millage belongs to the county, so see Atlanta conventional investment or ask us about yours.

Question 3

What is different about a Georgia closing on a conventional file?

Accepted Answer

The attorney is the closing, not an add-on to it. In re UPL Advisory Opinion 2003-2 approved the position that a non-attorney preparing and facilitating the execution of a deed of conveyance is the unauthorized practice of law, that the role cannot be delegated to a non-lawyer, and that a Georgia attorney must be physically present at the closing. The attorney holds and disburses funds, so there is no "our title company handles escrow" path. Georgia has no remote online notarization for its own notaries after the pandemic-era authority lapsed in 2022, so build the schedule around an in-person signing. Georgia is also a security deed state under O.C.G.A. 44-14-60: your instrument is a deed to secure debt, not a mortgage, and it passes title to the lender until the debt is paid. Confirm the current position with your closing attorney.

Question 4

What credit score do I need on a Georgia conventional investment loan?

Accepted Answer

580 is the floor on this program. That is the lowest documented-income threshold we run, and at the floor expect lower leverage rather than a decline. There is no hard credit pull to open a file. This program requires documented income, so if your returns understate the business, bank statement or DSCR qualification usually fits better. Subject to underwriting.

Question 5

How much do I put down on a Georgia conventional investment property?

Accepted Answer

Plan on 20% at maximum leverage. We go up to 80% LTV, so on a $350,000 Georgia purchase that is up to $280,000 from us and $70,000 from you (350,000 x 80% = 280,000), before closing costs. The property must be non-owner-occupied. Add the Georgia attorney fee, the 0.10 percent transfer tax, and the intangible recording tax on a 30-year note, which on a $280,000 note is $840. Subject to underwriting.

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