SC FHA Mortgages
Buying your first home can be one of the most exciting times in your life, but it's also one of the scariest. It's hard to know where to start and sometimes there are so many financing options for your new home that you're not sure how you'll ever pick one. However, if you're a first time homebuyer, it might be worthwhile to check into the South Carolina FHA loan program, which provides loans to borrowers who might have little to no credit experience, poor credit, or simply haven't had the time or means to save up a large sum of money for a down payment.
FHA Loan Advantages
South Carolina FHA loans are available through most of the same lenders who provide traditional home loans. These lenders usually have high standards for their home loans and often require nearly perfect credit with an extensive lending history as well as a down payment that can often be 20% of the purchase price. 20% doesn't sound like much at first, but for a home purchase of $200,000, you would have to have saved $40,000 to even be considered for a loan. In today's economy, that can be incredibly difficult.
Instead, the Federal Housing Administration provides a guaranty to the lender for each South Carolina FHA loan issued. This guaranty allows the lender to be more lenient about your credit score and total cash assets. In fact, even potential borrowers who have declared bankruptcy in the past can still qualify for a South Carolina FHA loan. Be sure to speak with your lender regarding the qualification process to determine if you're a good candidate for the program.
South Carolina FHA Loan Limits
Your lender will also be able to tell you the maximum amount of money the South Carolina FHA loan program can lend you, since there are limits for each county in South Carolina. These limits differ based on the cost of living in an area, but can be no less than $271,050 for a single family dwelling. For example, the limit for Charleston is currently $335,000 and in Hilton Head, borrowers can receive up to $387,500. The limit adjusts to ensure that even buyers in an area with an expensive housing market can still afford a home. Check with your lender for the limits in your area and be aware that multifamily dwellings have varying limits based on the number of units in the dwelling.