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, but simply want to apply for a mortgage, we recommend  ING DIRECT Orange Mortgage They have great rates, an easy online application, and welcome first time home buyers. Additionally they have 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