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Do First Time Home Buyers Need a Down Payment in South Carolina?

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Do First Time Home Buyers Need a Down Payment in South Carolina?


South Carolina saw an economic boost in 2023 and became the fastest-growing state in the US. Property values also jumped, making it difficult for first-time homebuyers. The average cost to buy a home in South Carolina in March 2024 was $370,100. Do first time home buyers need a down payment in South Carolina? First time homebuyers often face issues like a competitive housing market to find a suitable property for their family. Explore the first-time homebuyer loan programs and continue reading the blog.

Programs in South Carolina for First-Time Homebuyers

SC Housing Homebuyer Program

The SC Housing Homebuyer Program provides qualified first-time buyers with a 30-year fixed-rate mortgage. Obtain a second loan with relaxation, no payments, and 0% interest. This answers the question, `Do first time home buyers need a down payment?` The loan is usable for closing costs, a down payment, or both for a primary residence. A variety of mortgage options are available to participants, including conventional house loans, FHA, VA, and USDA loans. Down payment towards equity act gets influenced directly.



Type of Assistance

Second mortgages are relaxed monthly over 15 years. The second loan is waived if the borrowers stay in the house for the duration of the agreement.

Benefits and Qualifications

  • Homeowners in “non-targeted” counties, including borrowers who haven’t bought a house in three years
  • Completion of a homeownership education program
  • Minimum credit score of 620 or 640
  • Borrowers cannot own any interest in a home in “targeted” counties at the time of closing

SC Housing Palmetto Home Advantage

First-time and repeat buyers who meet the program’s requirements can apply for a 30-year fixed-rate mortgage with a second loan with 0% interest and no payments. The question, `Do first time home buyers need a down payment?` is addressed. Buyers can use the money for closing fees and/or a down payment. The choices available to participants may include conventional, FHA, VA, and USDA home loans.



Assistance Amount

0%, 3%, or 4% of the loan amount

Type of Assistance

Second loan relaxation monthly over a 10-year term.

Benefits and Qualifications

  • No first-time buyer limits
  • Borrowers with mortgage insurance get low rates
  • The income limit for government loans is $124,000 per borrower
  • The borrower income limit for traditional loans is 80% of the area median income
  • The lowest credit score of 640 for all loan types

Palmetto Home Advantage

Best for: Loans with assistance that isn’t paid back

What You Need to Know?

The program provides market-rate, government-backed, and conventional loans with forgiven down payment help to first-time and recurrent home buyers. There are income restrictions, but you receive the answer `Do first time home buyers need a down payment? Reduced rates on mortgage insurance are available from Palmetto Home Advantage. You can entirely cancel the policy upon meeting specific qualifications.

SC Housing oversees the administration of these programs, qualification requirements differ. Locally authorized lenders handle the paperwork. Look around and evaluate lender offers to find the best conditions for your situation. Visit the SC Housing website for information on loan and assistance options. To get started, refer to the list of lenders involved in SC Housing programs.

The Do’s for First-Time Buyers in South Carolina

The question `Do first time home buyers need a down payment?` also depends on some do’s. Some people buy new properties and homes they don’t need. They do it as an investment or just for fun. First-time buyers remember do’s to save maximum.

Separate Wants from Needs

Drawing a line between what you need and want from a home is a core principle when financing a home for the first time. If you know what you want, you can compromise to stick to your budget.

Know Your Credit Score

Your credit score is a vital factor in deciding how much (if any) you may get in terms of house loans. If your score is poor, work on raising it before applying for house finance. Rebuilding credit, maintaining low credit card balances, paying off debt, and making on-time bill payments are a few basic strategies to raise credit score.

Follow Less Conventional Options

If you are a first time home buyer in a particular neighborhood, you are not required to make a sizable down payment of up to 20 percent. You can choose low—or no-down-payment alternatives for VA, USDA, and FHA loans. Some communities offer assistance to first-time homebuyers through programs.

Look for the Right Real Estate Agent

Keep experienced agents on your side while you buy a home for the first time. This is good for `Do the first time home buyers need a down payment?` The price of the house in the end and any concessions you receive, like having some of the closing fees paid, depend on choosing the correct agent. Be sure to investigate and identify the top provider in your area.

Get Real Estate Advice from Redhead Home Properties

Are you looking for advice from a real estate agent? Redhead Home Properties can assist you. When buying a house, the down payment is the critical parameter. At Redhead Home Properties, we provide expert advice to help you through it. The down payment affects your mortgage and your monthly interest rates. A higher down payment results in more favorable loan terms. Redhead Home suggests a down payment of 20% of the asking price. This threshold helps avoid Private Mortgage Insurance (PMI). Contact us for more details!

A traditional loan requires a 3% down payment; an FHA loan requires a 3.5% down payment.

A standard mortgage requires a "minimum" down payment of 3% and a minimum credit score of 620. However, you may not need a down payment if you qualify for a VA loan.

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