There are many South Carolina down payment assistance programs currently available to residents. Some are government funded, and some are not; some are urban, some are rural. It all depends on a few factors such as what your total family income is, what your financial needs are and the area in which you would like to end up.
The most helpful advice is to do your diligence in research. The State Housing Finance and Development Authority (http://www.schousing.com/First-Time_Home_Buyers) has an option for first time buyers.
Family Services Incorportated now called Origin also has a down payment and closing cost assistance program which is referred to as DPCCA. Their website gives the list of available help and the requirements on how to qualify and apply for each.
The U. S. Department of Housing and Urban Development gives a list on their webpage of a number of different South Carolina down payment assistance programs with which they are affiliated with in some way. Options range from down payment assistance to community based government grants, with which individuals may have the chance to apply for assistance with through their local housing authority office. More information may be found of the website listed above. Their website connects residents with locally based professional real estate agents who focus on helping first time home buyers match up with qualifying state, city and county funded down payment assistance programs. Credit isn’t necessarily the first thing lenders look at, especially in relation to available South Carolina down payment assistance programs. Their main focus is on making South Carolina a safer and more comfortable place to reside.
Below is a list of South Carolina Down Payment Assistance Programs:
No Down Payment Mortgages – mortgages that require no down payment
USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.
Low Down Payment Mortgages – mortgages that require up to 3.5% down payment
FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.
Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.
The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.
South Carolina Down Payment Assistance Programs
The US Department of Housing and Urban Development (HUD) offers the following programs:
The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.
To learn more about the Good Neighbor Next Door Program, click here.
The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.
Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.
To learn more about Section 184, click here.
South Carolina Housing Agencies
South Carolina housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.
- Aiken Housing Authority
- Charleston County Housing and Redev. Auth.
- The Housing Authority of the City of Charleston
- Housing Authority of the City of Greenville
- Housing Authority of Fort Mill
- South Carolina Housing Authority
- Spartanburg Housing Authority
- South Carolina State Housing Finance and Development Authority