South Carolina Mortgage Overview
There is so much to love about living in
South Carolina. Its incredible beaches, beautiful sunsets, and gorgeous houses
are just a few reasons. Many people love the low cost of living too. The median
home price is around $162,000 which is well below the national average and is a
steal for such a gorgeous state.
If you're thinking of moving to South
Carolina, here are your loan options.
South Carolina conventional loans
With a 660 credit
score or higher you can get a conventional loan. First-time homebuyers need
just 3 percent down and subsequent homebuyers need 5 percent down. You need a
debt ratio of around 36 percent. If you have compensating factors, some lenders
may allow higher ratios.
South Carolina FHA loans
FHA loans are for
those who don't qualify for conventional loans. Borrowers need a 580 credit
score and 3.5 percent down. If you have a 500 - 579 credit score and 10 percent
down, you may still qualify. Down payment assistance funds and gift funds are
allowed. FHA loans require mortgage insurance for the life of the loan.
South Carolina VA loans
Veterans don't need a
down payment. All you need is a 620 credit score proof you can afford the loan,
your current debts, and the cost of living. You can get by with a high debt
ratio and VA loans don't have mortgage insurance. They do have an upfront
funding fee, but it's affordable.
South Carolina USDA loans
If you make less
than 115 percent of the area's median income, consider a USDA loan. This is the
alternate for any other loan program. You can't qualify for any other
financing. You need a 640 credit score but don't need a down payment. USDA
loans have affordable rates and mortgage insurance costs.
Programs in South Carolina
SC Housing Homeownership
This program is for
low-income families who can't qualify for any other program, but can afford a
loan payment. It has low interest rates and costs to make homeownership a
possibility for more people.
SC Housing Forgivable Down Payment Assistance
borrowers can get up to $6,000 in down payment assistance with a 10 or 20-year
term. The term depends on your income. If you stay in the home for the term,
it's forgiven and you owe nothing.
SC Mortgage Tax Credit Program
borrowers can receive an annual tax credit of up to $2,000 per year. You write
off some of the mortgage interest you pay each year which makes it easier to
afford your home.
Palmetto HEROES Program
Any essential workers
or public servicers may be eligible for this program which provides a fixed 3.5
percent interest rate and up to $10,000 in forgivable down payment or closing
cost assistance. Teachers, police officers, firefighters, grocery store
workers, and package delivery drivers are among the eligible professions.