Saving enough money to buy your first home can be a challenge. Thankfully, there are several programs designed to help first-time homebuyers with no down payment needed and lower credit scores to qualify. While some of these programs are specific to South Carolina, others are available nationwide. Talk to your Resource Mortgage Banker to see what you may qualify for.
South Carolina Loan Programs
South Carolina State Housing Finance and Development Authority (SC Housing) was established in 1971 with the goal of providing adequate housing for all citizens of South Carolina. It has helped over 150,000 people achieve their homeownership goals so far. They provide several programs that support both first-time and repeat homebuyers, offering benefits such as competitive mortgage loans and down payment assistance.
SC Housing Home Loans
The main program offered by SC Housing is their Home Loan, through which they offer 30-year fixed-interest loans including conventional, USDA, and FHA. The homeowner eligibility requirements vary by loan type, while the eligible properties include single-family houses, townhouses, modular houses, and lender-approved condominiums.
Forgivable Down Payment Assistance
The forgivable down payment assistance is a program designed specifically for low-income homebuyers who earn less than 80% of the median income in their area. It offers cash assistance of up to $6,000 as a forgivable second mortgage. The loan has no interest and no payments due, once the homeowner has resided in the property for 10 years, it is forgiven.
Repayable Down Payment Assistance
For homebuyers who do not qualify for the forgivable down payment assistance due to earning more than 80% of the median area income, there is the repayable down payment assistance. It also provides assistance of up to $6,000, however, it is classified as a second mortgage with a 2% interest rate and monthly payments for a 10-year term.
SC Mortgage Tax Credit Program
The SC Mortgage Tax Credit provides eligible homeowners with a federal income tax credit of up to $2,000 against the mortgage interest paid. Homeowners must live in the property and pay mortgage interest in order to qualify.
National Loan Programs
The conventional home loan offers first-time homebuyers that qualify through Fannie Mae or Freddie Mac with a down payment as low as 3%. However, if you are able to make a down payment of at least 20% you will not have to pay mortgage insurance.
The U.S. Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program developed the USDA Loan in order to make rural suburban housing more affordable. This program offers a zero down payment for eligible rural and suburban properties, while the homebuyers also have to meet the income limitations that vary by area.
First-time homebuyers with low credit scores can benefit greatly from the Federal Housing Administration loan. Through this program, homebuyers with lower credit scores are able to have a down payment as low as 3.5% or up to 10%, depending on the score.
The VA loan is available to military members, veterans, and surviving spouses, it is guaranteed by the U.S. Department of Veterans Affairs. There are several benefits to this program such as no minimum credit score, no down payment, and no mortgage insurance. To make this loan option even better for our borrowers, Resource Financial charges no lender fees.
Interested in one of these loan programs? Reach out to one of our Mortgage Bankers, who can answer your questions and work alongside you to choose the best mortgage option for you and your family.
With Resource Financial Services all homebuyers are also eligible to a cash reward of 0.5% of the value of the property purchased when they work with one of our recommended real estate agents and find their homes on our search platform, search homes now.
At Resource Financial Services, we love making people’s dreams of home ownership a reality. Visit us online today at rfsmortgage.com to get started. Then contact a Resource Financial Services mortgage banker at 877.797.4545 to discuss your mortgage options and your financial goals. Let us walk you through the process and welcome you home to a better mortgage.