Down Payment Assistance Programs in South Carolina
Home Loans Inc. helps South Carolina home buyers identify and layer down payment assistance programs - including SC Housing grants and forgivable second mortgages - with VA, FHA, USDA, and conventional loans to reduce or eliminate the cash needed at closing.
SC Housing Down Payment Assistance Programs
This program has HUGE implications that you MUST be aware of before you use it!
This is the fine print: if you sell, refinance, or even try to rent out the home in the first 15 years (yes FIFTEEN), you must pay back that "assistance". This ruins your profit, ruins your chance at a lower rate, ruins your move up plans.
Because of this, we chose not to offer this program. We can not justify doing that to someone.
Combining DPA with VA, FHA, and USDA Loans
This is generally a bad idea a vast majority of the time. However, here is what you should know:
Down payment assistance programs must be correctly layered with your primary loan - not all DPA programs are compatible with all loan types, and the layering must be done correctly to satisfy lender guidelines.
VA + DPA: VA loans require zero down payment, so DPA grants most commonly cover closing costs - reducing veteran out-of-pocket to near zero. FHA + DPA: SC Housing DPA layered on an FHA loan can cover the 3.5% FHA down payment and some or all closing costs.
USDA + DPA: USDA loans are also zero-down, so DPA again primarily covers closing costs. Conventional + DPA: some SC Housing programs are compatible with conventional first mortgages.
We choose not to do these loan scenarios.
Who Qualifies for Down Payment Assistance in the Lowcountry
Down payment assistance eligibility is based primarily on income, purchase price, and first-time buyer status - and more North Charleston and Lowcountry buyers qualify than typically realize.
Boeing, Mercedes-Benz Vans, Port of Charleston, and Volvo employees who are first-time buyers frequently qualify for DPA programs - their income is often within the program limits and the program's purchase price caps are workable in the North Charleston market. Military families who don't have VA eligibility can use FHA + DPA combinations. First-time buyers in Summerville's USDA-eligible areas can potentially combine USDA zero-down with DPA closing cost coverage - buying a home with effectively zero out-of-pocket.
Hablamos espanol - our bilingual team helps Spanish-speaking first-time buyers navigate DPA programs in their language.
DPA Payback and Forgiveness Terms
The payback and forgiveness terms of DPA programs vary significantly - and understanding them upfront prevents surprises if you sell or refinance before the forgiveness period expires.
Forgivable loans: the most common SC Housing DPA structure. The balance is forgiven entirely if you stay in the home for a specified period (typically 5-10 years). No monthly payment, no interest. If you sell or refinance before the forgiveness period, an amount may be due. Deferred second mortgages: no monthly payment but the balance is due when you sell, refinance, or pay off the first mortgage. Silent seconds: similar to deferred, often with 0% interest.
We explain the exact terms of every DPA program before you commit - so you know what happens in every scenario including early sale, refinance, or PCS.
Q: Do I have to repay down payment assistance?
A: It depends on the program. Forgivable loans are canceled after a set period (5-10 years typically) - no repayment if you stay. Deferred second mortgages have no monthly payment but are repaid when you sell or refinance. We explain the specific terms before you accept any DPA.
Q: Can veterans use down payment assistance with a VA loan?
A: Yes, it will likely not make sense though.
Q: What is the income limit for SC Housing programs?
A: Income limits vary by county and program.
Q: Can I use DPA if I have owned a home before?
A. Call us to check your eligibility regardless of prior ownership history.
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COMPANY
NMLS: 1281448 | COMPANY NMLS: 1728740
Home Loans Inc: Jason Sharon, Mortgage Broker |
2557 Ashley Phosphate Rd,
North Charleston, SC 29418 |
(843) 569-7283 | www.homeloansinc.com
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