First Time Home Buyer SC

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First time home buyer SC information and home buying assistance programs to make your home buying journey easy.

From trekking the woodland trails of the Upstate to watching the surf in Charleston and Hilton Head, South Carolina residents must have a passion for nature.

Redfin, a real estate firm, reports that the median sale price of a home in The Palmetto State rose by more than 15 percent year-over-year to over $260,000 in January 2021.

Some cities, such as Spartanburg, have experienced accelerated growth.

As a first-time purchaser, you have a variety of choices to battle rising property prices.

Since 1968, the South Carolina State Housing Finance and Development Authority, sometimes known as SC Housing, has worked to make housing more affordable throughout the state.

South Carolina mortgage programs for first-time buyers

SC Housing Homebuyer Program

SC Housing’s Homebuyer Program offers 30-year conventional, FHA, VA, and USDA loans with low fixed interest rates and down payment help to alleviate the financial burden of purchasing a first home.

First-time homebuyers, defined as those who have not bought a property in the prior three years, and repeat buyers in specific “targeted counties” are eligible for the program.

Single parents, veterans, and households with a disabled member may also be eligible for the program.

Borrower prerequisites:

• Conventional loans require a 3 percent down payment, FHA loans require a 3.5 percent down payment, and VA and USDA loans require no down payment.

• 640 credit score required for conventional, VA, and USDA loans; 620 credit score minimum for FHA loans

• Must fulfill SC Housing income restrictions, which range from $53,050 to $114,100 depending on where you live and the number of people in your household.

Property prerequisites:

• The property must be a single-family home, an off-frame modular home, a townhouse, or an FHA-approved condominium.

• Must be located in South Carolina

• Purchase price restrictions for South Carolina housing range from $225,000 to $300,000 based on county.

SC Housing Palmetto Home Advantage

The Palmetto Home Advantage program from SC Housing is not limited to first-time homebuyers, however you can utilize it to purchase your first home.

The program offers attractive interest rates and up to 5 percent of the loan amount in down payment assistance.

If you are required to pay mortgage insurance (a cost incurred by most homebuyers with less than a 20% down payment), the program also offers a lower insurance rate.

To qualify, you must have a minimum credit score of 640 and meet income requirements, which vary based on whether you’re applying for a conventional, FHA, VA, or USDA loan.

South Carolina down payment assistance

Both of SC Housing’s down payment aid options come with an intriguing stipulation: You may not be required to repay them.

These are second mortgages with no interest and no monthly payments, as well as the possibility of loan forgiveness.

This forgiveness occurs at two distinct intervals based on your income:

• 10 years – If you earn 80 percent or less of the area’s median income (AMI) at the time you take out the down payment assistance loan, the loan will be forgiven after a decade if you remain in the home for the duration of the term.

• 20 years — If your income exceeds the 80% criteria, the debt will be forgiven after 20 years. Again, you must reside in the home for the duration of the 20-year period.

SC Housing Down Payment Assistance

The typical down payment assistance program from SC Housing provides up to $7,000 to cover a portion of the down payment or closing fees.

The eligibility requirements are identical to those of the Homebuyer Program, with the addition of completion of a homebuyer education course.

SC Housing County First Initiative

SC Housing’s County First Initiative is designed for both first-time and repeat homeowners residing outside of the state’s urban centers.

Through this program, homebuyers in the following counties are eligible for up to $8,000 in additional down payment assistance.

Abbeville
Allendale
Bamberg
Barnwell
Calhoun
Chesterfield
Clarendon
Colleton
Dillon
Edgefield
Fairfield
Georgetown
Hampton
Jasper
Lee
Marion
Marlboro
McCormick
Newberry
Williamsburg

The County First Initiative adheres to the same income and purchase price restrictions as the Homebuyer Program.

Additional first-time buyer loan programs

In addition to gaining support at the state level, you may be eligible for municipal programs that provide homebuying assistance.

While SC Housing’s duration for forgiving the down payment is 10 to 20 years, certain local options offer shorter periods for paying off the second mortgage.

The CommunityWorks down payment assistance program in Greenville County gives up to $4,000 in five-year forgivable funds.

A homeownership assistance program in Richland County, where the state capital Columbia is located, offers up to $10,000 for assistance with the down payment and closing costs, which can be forgiven after five years.