From hiking the wooded trails of Upstate to watching the waves in Charleston or Hilton Head, living in South Carolina means loving the outdoors. The cost of buying a home in the state of Palmetto has skyrocketed, with the average selling price rising more than 15% year on year in January 2021, to about $ 260,000, according to real estate broker Redfin. Some cities, like Spartanburg, have seen overfed increases.
If you are buying a home for the first time, you have many options to combat rising prices. The South Carolina Housing Development and Financing Authority – known simply as SC Housing – has been working to make homes more accessible in the state for the past 50 years.
Buyer loan programs for the first time in South Carolina
SC Buyer Program
SC Housing’s Home Buyer Program includes conventional 30-year, FHA, VA and USDA loans with competitive fixed interest rates and assistance with down payment to lessen the shock of entering your first home. The program is open to first time home buyers, classified as those who have not had a home in the past three years, or recurring buyers in certain “target counties”. Single parents, veterans or those with a disabled family member may also qualify for the program.
Borrower requirements:
- 3% down payment for conventional loans; 3.5 percent in the payment of the FHA loan; no down payment is required for a VA or USDA loan
- 640 minimum credit score for conventional, VA and USDA loans; Minimum credit score of 620 for FHA loan
- You must meet SC’s housing income limits, which vary according to where you are buying and how many will live in the house ($ 53,050 to $ 114,100)
Ownership requirements:
- It must be a single family home, an independent modular home, an urban residence or an FHA approved condominium
- It must be in South Carolina
- Must meet SC Housing purchase price limits, which range from $ 225,000 to $ 300,000 based on the county
SC Housing Palmetto Home Advantage
SC Housing’s Palmetto Home Advantage program is not just for first time home buyers, but you can use the offer on the first purchase of a home. The program offers competitive interest rates along with assistance in paying up to 5% of the loan amount. If you need to pay mortgage insurance (an expense paid by most home buyers who are unable to pay 20%), the program also offers a reduced insurance rate.
To qualify, you will need a minimum credit score of 640 and meet income limits, which vary depending on whether you are getting a conventional, FHA, VA or USDA loan.
South Carolina Down Payment Assistance
Both SC Housing down payment assistance offers come with an attractive disclaimer: you may not have to pay back. These are second interest-free mortgages with no monthly payments and the option to forgive the loan entirely. This forgiveness happens at two different intervals based on how much you earn:
- 10 years – If you earn 80% or less of the area’s average revenue (AMI) when you take out the initial payment assistance loan, the loan will be forgiven after a decade, as long as you live with the same residence all the time.
- 20 years – If you earn above the 80% limit, the loan will be forgiven in 20 years. Again, you have to live on the property for the entire 20-year period.
Assistance for housing advance SC
SC Housing’s standard down payment assistance program offers up to $ 7,000 that can be used to cover part of the down payment or its closing costs. The eligibility requirements are the same as those that come with the Home Buyer Program, with an addition: You must complete a Home Buyer education course.
SC Housing County First Initiative
SC Housing’s County First Initiative is aimed at both first-time buyers and applicants who live far from the state’s dense urban areas. Through this program, borrowers can qualify for additional assistance with down payment – up to $ 8,000 – if they purchase a home in these counties:
- Abbeville
- Allendale
- Bamberg
- Barnwell
- Calhoun
- Chesterfield
- Clarendon
- Colleton
- Dillon
- Edgefield
- Fairfield
- Georgetown
- Hampton
- Jasper
- Lee
- Marion
- Marlboro
- McCormick
- Newberry
- Williamsburg
The County First Initiative follows the same revenue and purchase price limits that apply to the Home Buyer Program.
Other loan programs for first home buyers
In addition to getting help at the state level, you can find assistance with buying a home through local programs. Although SC Housing’s initial down payment period is 10 to 20 years, some local options offer shorter terms for the elimination of this second mortgage. In Greenville County, the CommunityWorks down payment assistance program offers up to $ 4,000, which can be forgiven in five years. In Richland County – where the state capital, Columbia – is located, a home assistance program offers up to $ 10,000 to help pay entry and closing costs, which are also forgivable in five years.
Be sure to use Bankrate’s guide to home buying programs for the first time to find out if you qualify for other forms of assistance available nationally.
For other South Carolina owned programs, visit HUD.gov.
start
As a home buyer for the first time, you may feel overwhelmed when you start browsing listings. To make sure you have a realtor who understands the ins and outs of options that can fit your finances, use SC Housing’s list of realtors to find one that can help you through the process. When you have a firm sense of how much help you can receive and how much you are prepared to spend on a home, you can compare interest rates and options from the agency’s approved creditors.