Press Releases
Palmetto ByWays Encourages Homebuying in Rural Communities - 7/28/1998
The State Housing Finance and Development Authority has announced a new home mortgage loan program especially designed for the state's rural communities. The Authority's Board of Commissioners just invested $5 million in "Palmetto ByWays," a mortgage loan program with a low 6.25 percent interest rate. Palmetto ByWays has been approved for 29 counties in the state and the Authority is also waiving its first-time homebuyer provision and providing a loan of up to $2,000 in closing cost help to qualified borrowers. (Click Here For Fact Sheet and List of Counties.)
"We're always looking for new ways to market our loan programs to areas of our state that might be under-served," said Gene Spivey, chairman of the Authority's Board of Commissioners. "Our data shows us that we're doing about as well as any conventional lending institution in those 29 counties, but we want to do better," he said. "We're going to try this program and see if we can't reach a greater number of families with it."
An incentive has been added for lenders participating in the Palmetto ByWays mortgage loan program and, according to the agency's executive director Dave Leopard, it is a first for the Authority. "A reservation fee of $350 will be paid to lenders for each loan originated in the Palmetto ByWays service area," Leopard explained. An award will also be established for the lender closing the largest number of loans in under-served counties.
Gene Spivey says the Board is hoping for success with this pilot project loan. "By creating a new program, with fewer restrictions on top, and adding financial and other incentives for lenders, we think we can really make a positive impact on the economy in the Palmetto ByWays counties," he said.
State Housing guidelines for household income and home purchase price are consistent with the agency's other mortgage loan programs. The maximum household income for one person is $31,000; and another $1,000 can be added for each additional person in the household, up to $45,000. The home purchase price limit is $76,000.
Mortgage terms may be for 15, 20, 25, or 30 years and must be insured by FHA. Earthquake insurance is not required.
Persons interested in the Palmetto ByWays mortgage program should contact a participating lender or call the Authority for more information (803) 734-2069. Persons with impaired hearing or speech may use the TTY line (803) 734-2369.
The South Carolina State Housing Finance and Development Authority is a self-supporting agency of state government operating at no cost to state taxpayers.
Equal Housing Opportunity