First-time homebuyers in South Carolina have something to celebrate. The South Carolina Housing Finance and Development Authority’s Homebuyer Program offers down payment assistance to first-time homebuyers. The program provides up to $8,000.00 for eligible borrowers to be used to pay for a down payment and closing costs.
SC Housing offers all qualified borrowers forgivable Down Payment Assistance (DPA). The down payment assistance must only be used for down payment or closing costs. The DPA comes as a second mortgage with a fifteen (15) year term. The interest rate is zero percent, and there are no monthly payments. The DPA amount will be forgiven if the homebuyer occupies the home for 15 years. If they should move before the term ends, the loan would need to be paid back from the proceeds of the sale of the home.
The SC Housing Homebuyer Program can be used with FHA/VA/USDA and conventional fixed-rate mortgages, and the maximum home price is $395,000.
According to the US Department of Housing and Urban Development (HUD), a First-Time homebuyer is:
- An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers).
- A single parent who has only owned with a former spouse while married.
- An individual who is a displaced homemaker and has only owned with a spouse.
- An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
- An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.
The SC Housing Homebuyer program also stipulates that in “non-targeted counties, the borrower must be a first-time homebuyer or have not owned a principal residence in the three (3) years preceding the date on which the loan is closed. In targeted counties, the borrower must not own a home or have any ownership interest in a home at the time of closing. Here is a list of the targeted and non-targeted counties:
If you are renting and would like to purchase a home in South Carolina, contact our loan team to learn more about this generous program and see if you are eligible.
