SC Housing Rolls Out Mortgage Option with Reduced Interest Rates

In Columbia, South Carolina, SC Housing is taking significant steps to help South Carolinians achieve the American dream of homeownership with the introduction of its new Reduced Interest Rate Homebuyer Program. This initiative is specifically designed to make home buying more accessible and affordable for first-time buyers in the state.

The program offers a special opportunity for participants to secure a lower-interest rate mortgage, specifically tailored for FHA/VA and USDA/RHS first mortgage loans. This unique offering allows eligible buyers to obtain a special reduced fixed-rate mortgage when purchasing their first home. However, it's important to note that this option does not include down payment assistance (DPA).

Starting Monday, Nov. 20, when the program officially launches, first-time homebuyers will have the chance to lock in a fixed-rate mortgage. The current rate stands at 6.25 percent with zero discount points, although lenders may charge up to a one-point origination fee. This competitive rate is part of SC Housing's commitment to making homeownership more attainable for South Carolinians.

Eligibility for the program is limited to FHA/VA and USDA/RHS first mortgage loans. Borrowers are required to use their own funds, which can include eligible gift funds, to cover down payment and closing costs. Additionally, applicants must meet all SC Homebuyer Program guidelines. These include the definition of a first-time homebuyer, as well as income and sales price limits. The program is accommodating in terms of credit requirements, accepting credit scores as low as 620 (FHA) and allowing a debt-to-income ratio of up to 45 percent.

Steve Clements, SC Housing’s director of single-family programs, emphasizes the value of this new program, especially in the current economic climate. “Over the span of a mortgage, this program is a great bargain,” Clements explains. “With rates and house prices as high as they are, this program helps first-time homebuyers break into the market with a more manageable monthly payment.”

The program is particularly beneficial for specific groups of first-time buyers, such as veterans. Veterans, for instance, can purchase a home using a VA loan with no down payment and enjoy a lower-than-market interest rate, making homeownership significantly more feasible.

SC Housing's Reduced Interest Rate Homebuyer Program is a testament to the organization's dedication to assisting South Carolinians in realizing their homeownership aspirations. By offering more favorable mortgage terms, SC Housing is not only helping individuals and families to secure their own homes but also contributing to the overall economic stability and growth of the community. This program is expected to be a game-changer for many first-time homebuyers in South Carolina, providing them with a valuable opportunity to invest in their future in a more affordable and sustainable way.