Press Releases
Housing Authority Unveils New Mortgage Assistance Program - 5/27/2003
In observance of National Homeownership month in June, the South Carolina State Housing Finance and Development Authority has unveiled a program to help South Carolinians become homeowners. The Down HOME Assistance program, made possible by a $1 million award from the Department of Housing and Urban Development (HUD), is a $5,000 forgivable loan and is targeted to households at or below 80 percent of the county median income. This grant can be applied to the down payment and closing costs for the purchase of a single family home and must be used in conjunction with a State Housing Authority mortgage loan.
The State Housing Authority’s Homeownership program offers low to median income homebuyer loans with affordable below-market interest rates. These mortgage loans will provide fixed rate loans for low to moderate-income families and individuals for 15, 20, 25 or 30 years. At this time, the interest rate for the Homeownership program is at a near-record low of 5.25 percent.
The allowable household income for persons qualifying for the Down HOME program is based on federal income guidelines and varies by county and household size. The maximum household income ranges from $24,450 to $51,300 and the maximum acquisition price for a newly constructed or existing home cannot exceed $115,200. Homes built prior to 1979 are not eligible for the Down HOME Program.
One of the biggest hurdles in becoming a homeowner can be coming up with the down payment and closing costs,” said Dan Rawls, Chairman of the Authority’s Board of Commissioners. “We know there are many people in our state who are renting and paying amounts equal to or even more than a mortgage payment. They are probably good candidates for homeownership but can’t quite meet the required upfront costs because they haven’t been able to save any money. Through this new program, we hope to lessen the load of these expenses and make homeownership available to even more South Carolinians.”
Prior to approval for the Down HOME program, recipients must complete a homebuyer and home maintenance training course and receive a Certificate of Completion to be included in their loan package. In order to register for the homebuyer training and home maintenance course, borrowers must have a Down HOME loan reserved with the Authority.
The Authority’s Mortgage Assistance Loan program is also available in combination with the Homeownership program for persons who do not qualify for the Down HOME program. This program is a four percent loan for five years and acts as a second mortgage. Repayment does not begin until three years after closing with no interest accruing until repayment begins. Mortgage assistance loans are available only with home loans offered by the State Housing Authority.
Persons interested in the State Housing Homeownership 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 a self-supporting agency of state government and operates at no cost to the taxpayers of the state.
Equal Housing Opportunity