South Carolina First-Time Homebuyer Help Applications

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South Carolina was the nation’s fastest-growing state in 2023, in response to Census information, and the price of shopping for a house right here has been rising together with residents. That’s creating challenges for first-time homebuyers. The South Carolina State Housing Finance and Improvement Authority — referred to as SC Housing — has been working to make properties extra reasonably priced within the state for the previous 50 years.

South Carolina first-time homebuyer mortgage packages

SC Housing Homebuyer Program

SC Housing’s Homebuyer Program contains 30-year typical, FHA, VA and USDA loans with aggressive mounted rates of interest and down cost help. This system is open to first-time homebuyers and those that haven’t owned a house previously three years, or repeat patrons in sure “focused counties.” Single mother and father, veterans or these with a member of the family dwelling with a incapacity may also qualify for this system. The eligibility necessities embody:

  • 3 % down cost for typical mortgage; 3.5 % down cost for FHA mortgage; no down cost required for VA or USDA mortgage
  • 640 minimal credit score rating for typical, VA and USDA mortgage; 620 minimal credit score rating for FHA mortgage
  • Should meet SC Housing earnings limits, which fluctuate based mostly on the place you’re shopping for and what number of will reside within the family, and buy worth limits
  • Have to be shopping for a single-family, off-frame modular dwelling, a townhome or FHA-approved condominium in South Carolina

SC Housing Palmetto Residence Benefit

SC Housing’s Palmetto Residence Benefit program shouldn’t be solely for first-time homebuyers, however you need to use the providing to your first dwelling buy. This system presents aggressive rates of interest together with down cost help of as much as 4 % of the mortgage quantity. If that you must pay mortgage insurance coverage (an expense paid by most homebuyers who can’t put down 20 %), this system presents a diminished insurance coverage fee, as effectively.

To qualify, you’ll want a minimal credit score rating of 640 and to fulfill earnings limits, which fluctuate relying on whether or not you’re acquiring a traditional, FHA, VA or USDA mortgage.

South Carolina down cost help

SC Housing down cost help

If you happen to’re acquiring a house mortgage by means of SC Housing, you can be eligible for forgivable down cost help in a 15-year second mortgage. You received’t should repay the help should you reside within the dwelling for your entire 15 yr time period.

SC Housing County First Initiative

SC Housing’s County First Initiative is for each first-time and repeat homebuyers dwelling away from the state’s dense city areas. By way of this program, debtors can qualify for added assist with the down cost — as much as $8,500 — if buying a house in these counties:

  • Abbeville
  • Allendale
  • Bamberg
  • Barnwell
  • Beaufort
  • Calhoun
  • Chester
  • Clarendon
  • Dillon
  • Edgefield
  • Fairfield
  • Georgetown
  • Hampton
  • Jasper
  • Lee
  • Marion
  • Marlboro
  • McCormick
  • Newberry
  • Orangeburg
  • Saluda
  • Union
  • Williamsburg

The County First Initiative follows the identical earnings and buy worth limits that apply to the Homebuyer Program.

Different first-time homebuyer mortgage packages

Along with securing assist on the state degree, you may be capable of discover homebuying help by means of native packages. In Greenville County, the CommunityWorks down cost help program presents as much as $5,000 that may be forgiven in 5 years or as much as $10,000 that may be forgiven in eight years. In Richland County — the place the state capital Columbia is positioned — a homeownership help program presents as much as $10,000 to assist with down cost and shutting prices, additionally forgiven after 5 years.

When you’re contemplating first-time purchaser packages in South Carolina, you’ll want to discover nationally out there first-time purchaser mortgage packages like:

  • FHA loans – In case you have a decrease credit score rating or restricted financial savings, take into account an FHA mortgage. These loans are extensively out there, have a minimal credit score rating of 580 and require a down cost as little as 3.5 %.
  • VA loans – If you happen to’re a member of the navy or veteran, you can qualify for a VA mortgage, which doesn’t require a down cost.
  • USDA loans – USDA loans don’t have a down cost requirement, however are solely out there to debtors shopping for in a USDA-eligible rural space. You usually want a credit score rating of 640 or greater to qualify.
  • Good Neighbor Subsequent Door program – This HUD program has a really low down cost requirement on properties in sure areas, coupled with the power to save lots of 50 % on the acquisition worth.

Get began

As you put together to change into a first-time homebuyer, listed here are some subsequent steps:

  • Do your homework. Examine SC Housing’s community of lenders to assist slender down your decisions.
  • Work in your credit score rating. It’s an important think about figuring out your mortgage fee, so deal with boosting your quantity.
  • Examine lenders. No matter which program you select, it’s necessary to buy round for mortgage presents. Rates of interest are at all times altering, so should you discover a fee that’s particularly aggressive, you’ll want to lock it in.

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