Mortgage Credit Certificate Program (MCC)

The SC State Housing Finance and Development Authority, or SC Housing, runs the South Carolina Tax Credit Program. Known as the Mortgage Credit Certificate Program, qualified applicants are offered up to $2,000 yearly as a federal income tax credit. This means that a part of the annual interest deductions on the homebuyer's primary home is converted into a Federal Tax Credit. Consequently, the credit is subtracted from the annual interest, and the balance is then deducted as regular interest.

The credit can be -

• The borrower uses it to reduce their debt ratio, helping them to qualify for a more considerable loan amount.
• It is considered a lump sum amount every year when federal taxes are filed, thereby reducing the total taxes owed.

This program can be combined with any conventional loan, such as Fannie Mae, or a government program, such as VA, USDA, or FHA. However, MCC cannot be used with the South Carolina Housing Bond program, 502 direct loans from USDA, or 203 (k) loans from FHA.

Palmetto Advantage

If you are a first-time home buyer in South Carolina, Palmetto Home Advantage is an excellent option. This program also offers financing options to repeat buyers and is applicable for purchasing new and existing homes in all 46 counties in the state. The key features of the program are -

• A minimum credit score of 640.
• No sales price limits
• Borrower income limit of $124,000.
• The income limit does not depend on the family size and is not a measure of the total household income.
• Down payment assistance SC options are 0% and 3%. Or 4% of the total loan amount.
• Conventional financing is offered on one-unit properties of up to 97% Loan to Value while up on two-unit properties of up to 95% Loan to Value.

SC Housing Homebuyer Program

This program offers fixed-rate loans for 30-year terms on conventional loans like VA, USDA, and FHA. Additionally, the program offers competitive interest rates and down payment assistance SC. It is a program for first-time home buyers in South Carolina and those who do not own a house, especially three years before the application. However, buyers in targeted counties can benefit from this program even on repeat purchases. No down payment is required for VA and USDA loans, a 3% down payment for conventional loans, and a 3.5% down payment for FHA loans.

SC Housing Down Payment Assistance

Homebuyers received forgivable down payment assistance SC through a 15-year second mortgage in this program. No repayment is required if the borrower resides in the home for the entire duration of the loan.

SC Housing County First Initiative

This loan program is offered to first-time home buyers in South Carolina and repeats buyers in specific sparsely populated areas of the state. Homebuyers can get up to $8,500 down payment assistance for buying homes in counties like Abbeville, Barnwell, Beaufort, Edgefield, Fairfield, Marion, Marlboro, Union, Williamsburg, etc. The income and purchase price criteria are similar to the central Homebuyer Program.

Local First-Time Homebuyer Programs

Certain local initiatives are also available for homebuyers keen to buy homes in those localities. One such initiative is the CommunityWorks program currently running in Greenville County. There is also one homeowner assistance program in Richland County, where the borrower gets up to $10,000 as closing cost and down payment assistance.

National First-Time Homebuyer Programs

Other programs should also be considered while evaluating financing options. For example, the federal FHA loan program is a good alternative for borrowers with low credit scores. Similarly, the VA loan option is best for military personnel with no down payment requirement. USDA loans are beneficial if you want to buy a home in a rural area in SC. This program, too, requires zero down payment. Lastly, there's the Good Neighbor Next Door program that offers buyers discounts in specific communities.