First Time Home Buyer
Programs in South Carolina
Complete First Time Home Buyer Programs Available in South
Carolina.
The state agency created by the legislature in South Carolina to
offer first time home buyer programs is the South Carolina Housing Finance and
Development Authority. Here is a summary of the current first time home buyer
programs that are offered:
Single Parent Program
The Single Parent Program is a special program for single borrowers with
children. This program is offered to borrowers who single and the custodial
parent/guardian of at least one child under the age of 18. The first time
homebuyer requirement is waived for the program. Option II rates are available
to borrowers.
Down payment and Closing Cost Assistance Program
Option I
Borrowers: Down Payment and Closing Cost Assistance
SC State Housing offers a $2,000 fixed rate repayable Down Payment Assistance
Loan (DPA) for qualified borrowers to be used with our first mortgage product.
Your first payment on this loan is not due until three years after you purchase
your home. You then have five years to pay this loan off. The interest rate is
four percent. During the three years before making the payment, no interest will
accrue. This means you can pay it off before it comes due and only have to pay
the amount borrowed.
Option II
Borrowers: Down Payment and Closing Cost Assistance
SC State Housing offers a $4,000 fixed rate DPA loan to qualified borrowers. For
Option II borrowers, this loan is made up of a $2,000 that you will repay and
$2,000 that will be forgiven (like a grant). These must be used together. The
$2,000 forgivable portion will be forgiven after five years as long as you live
in your home in entire five years. The amount is forgiven at a rate of 20% per
year for five years. The $2,000 portion you pay back is not due until three
years after you purchase your home. You then have five years to pay this loan
off. The interest rate is four percent. During the three years before making the
payment, no interest will accrue. This means you can pay it off before it comes
due and only have to pay the amount borrowed.
Option III
Borrowers: Down Payment and Closing Cost Assistance
SC State Housing offers a $4,000 Forgivable DPA loan to qualified borrowers. For
Option III borrowers, the $4,000 will be forgiven after five years as long as
you live in your home in entire five years. The amount is forgiven at a rate of
20% per year for five years.
Special Programs
From time to time, SC State Housing may offer special programs. Our current
offerings include:
Work Force Initiative
Firefighters
Law Enforcement
Hospital Workers
Teachers
For complete details on these first time home
buyer programs available to South Carolina residents, visit the
South Carolina Housing Finance and
Development Authority website.
It is highly recommend that you also visit the
First Time Home Buyer Grants page
for free assistance with the down payment. This will make it possible for many
people to qualify for a first time home
buyer loan who wouldn't have qualified without the grant assistance.
Best Lender For First Time Home Buyer Loans
Unfortunately, some lenders do not like
to work with first time home buyers (due to not having a track record), and prefer instead to only provide
mortgages to people who have previously owned a home.
If you do not need help with the down payment and are not
in need of any state program, search for a
lender that has great rates, an easy online application, and welcome first
time home buyers. Additionally find one that has not been as severely hurt by the
subprime mortgage crisis and are still approving the majority of applications.
Other First Time Home Buyer Programs & Resources
