Press Releases
State Housing Authority Lowers Interest Rate on Mortgage Loan Program - 10/14/2003
[Columbia,SC] Due to the ever-changing market conditions in the housing arena, the South Carolina State Housing Finance and Development Authority responded by lowering the interest rate on its current home loan program to 5.25 percent. Low- and moderate-income first time homebuyers throughout the state will be able to take advantage of this below-market interest rate. The funds, offered through the Authority’s Mortgage Revenue Bond program, will provide fixed rate loans for 15, 20, 25 or 30 years. The structure of this original Bond Series made it possible for the Agency to raise or lower the interest rate depending on market conditions.
These mortgage loans must be insured by FHA or one of several private mortgage insurers, as specified in the program guidelines. State Housing mortgages may be for new or existing homes, including manufactured homes on permanent foundations, townhouses and condominiums. The loans are for first time buyers and cannot be used for refinancing.
Two programs are available through the Agency to help buyers with down payment and closing costs. The Mortgage Assistance Loan is a four percent loan for five years and acts as a second mortgage. Repayment of the up to $2,000 loan does not begin until three years after closing with no interest accruing until repayment begins. This loan requires no matching funds to qualify and can be combined with gift funds or other down payment assistance programs as long as the State Housing Authority holds the first and second mortgage.
The second program, Down HOME, is designed for households with annual incomes at or below 80 percent of the county median. Also, homes purchased must have been built after 1979. The up to $5,000 loan is forgivable over a 5-year timeframe. Both Programs are only offered in conjunction with the Authority’s first mortgage loan program and the Authority must hold the first and second mortgage.
“Lowering the interest rate for our Homeownership program will provide more housing opportunities and open more doors for the first-time homebuyers of our state,” said Charles I. Small, Chairman of the Authority’s Board of Commissioners. “Having the ability to lower our rates as the market dictates allows us to put more people in homes at a faster rate,” he added. “That’s the real goal of this program – to make homebuying affordable to more South Carolinians.”
Income qualifications and home purchase price limits vary by county and household size. The maximum household income ranges from $45,000 to $74,760 and the maximum acquisition price for a newly constructed or existing home ranges from $100,685 to $195,150. Maximum income and purchase price limits must be determined by the homebuyer’s overall income and debt structure. The new 5.25 percent rate is available immediately through any of the Authority’s more than 35 participating lenders or brokers statewide. (See website for Program fact sheets and lender list)
Moody’s Investors Service, a major municipal bond rating agency, rated the original bond issue which funds this program as Triple A (Aaa), the highest rating given by the organization.
Persons interested in the State Housing mortgage loan program should call the agency’s Loan Purchase department, (803) 734-2069, or visit the website: www.sha.state.sc.us, for a list of participating lenders. Hearing and/or speech-impaired individuals may use the Authority’s TTY line (803) 734-2369.
The South Carolina State Housing Finance and Development Authority is an agency of state government operating at no expense to the taxpayers of South Carolina.
Equal Housing Opportunity