The prospect of becoming a homeowner for the first time is both an exciting and confusing time for many people. Though it’s exciting to have a piece of property of your own and you won’t have to continue to pay rent, buying a home is a huge investment. The cost of a home can sometimes seem overwhelming, however, you are entitled to certain benefits as a first-time homebuyer.
Benefits of First-Time Homeownership
There are numerous methods of getting monetary assistance if you are a first-time homeowner. While there is an array of both federal and local programs available, we will focus on those available in South Carolina.
Down Payment Assistance Program
In South Carolina, you can take advantage of the Down Payment Assistance Program. It is used in conjunction with either a USDA loan or an FHA loan and provides $6,000 in assistance that is used for the home’s down payment, closing costs and prepaid fees. Borrowers above 80% median income repay the loan over a period of 10 years. For borrowers who fall under 80% of the median income, the loan is forgivable as long as they occupy the home for a period of 10 years.
When assessing income, all members of the household who are aged 18 and above must have their income included. Using a USDA loan means that you’ll need to meet that agency’s income limits as well and that each county establishes its own limits.
If you choose an FHA loan, you can use the funds to pay off a construction loan. You’ll need to meet minimum credit scores, maintain a maximum debt-to-income ratio of 45 percent and undergo homebuyer education. The home must be located in South Carolina, cannot be priced above $225,000 and must have a clear CL-100 termite inspection.
Are you a first-time home buyer interested in purchasing a home in beautiful Greenville, South Carolina? Don’t go through the home buying process alone. The Parker Group are Greenville’s real estate experts offering countless resources and services in a warm and friendly environment. Contact us today and learn how The Parker Group can partner with you to make your homeownership dreams come true!