Tips for South Carolina homebuyers

What you need to know when buying a house in South Carolina

Potential homebuyers often face the same challenges when purchasing their first home, especially the hurdle of coming up with the down payment and other costs associated with closing a home loan. Even borrowers with good income, credit, and stable employment can struggle to save enough money for these expenses as home values rise. However, state organizations like SC Housing have designed programs that are open to all, providing a range of down payment assistance programs and low fixed interest rate loans through authorized lenders such as Mortgage Equity Partners. This emphasis on inclusivity ensures that every potential homebuyer can pursue their dream of homeownership regardless of circumstances.

“The first and most important thing for a person to do is call me to start the pre-approval process. I will make sure they are in the best loan program and help them take advantage of the down payment assistance programs in their area to receive the maximum funds available, said Jimmy Atkins, Area Manager of the Southeast region of Mortgage Equity Partners. “I have helped so many families use the DPA programs who thought they would never be able to afford a new home. There are programs out there we need to guide potential homebuyers to the right ones. We are a local lender and close quickly, so the process is easier than most people think.”

What down payment assistance programs are available in South Carolina?

SC Housing DPA

SC Housing offers all qualified borrowers forgivable down payment assistance (DPA). The assistance may only be used towards a borrower’s down payment, closing costs, and prepaid items. Income and home sales price limits must be met to qualify. This DPA comes as a second mortgage with a fifteen-year term. The interest rate is zero, and there are no monthly payments. The DPA will be fully forgiven if the borrower occupies the home for 15 years.

Palmetto Heroes

The Palmetto Heroes Program recognizes first responders and others who work to keep our families and communities safe, smart, and strong. First-time homebuyers in certain professions may receive an FHA, VA, USDA, or Conventional loan with a competitive interest rate and $12,000 in forgivable down payment assistance. Mortgage Equity Partners is an authorized lender for this program, and our local team of loan officers can guide you through the requirements.

The Palmetto Heroes program began accepting reservations on Monday, April 15, 2024, so don’t wait since funding is limited.

Eligible professions include:

Palmetto Home Advantage

The Palmetto Home Advantage is a loan program option for all borrowers with no first-time homebuyer requirement and can be used with new and existing homes. This program is available in all 46 counties in South Carolina and has no sales price limits on the homes. The income limit is $127,000, which is not dependent on family size or based on household income. The program offers forgivable down payment assistance of 0%, 3%, or 4% of the loan amount with no monthly payment. The Palmetto Home Advantage does have a minimum credit score requirement of 640.

It is an amazing program, and our loan team can help you verify your eligibility and review the loan options.

County First Initiative

The SC Housing County First Initiative program is for homebuyers (including first-time and move-up buyers) in underserved communities where local economic conditions make homeownership challenging. The program, often referred to as a bond program, provides up to $8,500 in forgivable down payment assistance and special fixed-rate financing. The County First Initiative program can be used with FHA, Conventional, VA, or USDA loans through authorized lenders like Mortgage Equity Partners.

Which communities is the SC Housing County First Initiative available?

Abbeville, Allendale, Bamberg, Barnwell, Beaufort, Calhoun, Chester, Clarendon, Dillon, Edgefield, Fairfield, Georgetown, Hampton, Jasper, Lee, Marion, Marlboro, McCormick, Newberry, Orangeburg, Saluda, Union, and Williamsburg

State and local bond programs like those available through SC Housing are designed to help credit-worthy homebuyers become homeowners. Often, the only thing standing in the way is coming up with the funds for the down payment and closing costs. Working with experienced local lenders can help make your homeownership dreams a reality, so contact our South Carolina team today!