Press Releases
State Housing Authority Announces $130 Million First Time Homebuyer Program - 6/23/2004
[Columbia, SC] The South Carolina State Housing Finance and Development Authority, a premier source of capital for single-family home loans to first time homebuyers in the state, has announced the availability of $130 million for qualified South Carolina families and individuals. These funds, obtainable through the Authority’s Mortgage Revenue Bond program, will be offered at fixed below market interest rates.
In addition, the Authority has fine-tuned its Homeownership program to better serve homebuyers as well as participating lenders, credit unions, and brokers.
The first, and perhaps the most streamlined change, will be the Agency’s ability to adjust interest rates as market conditions dictate. This will allow the Authority to offer below market interest rates while maintaining the financial integrity of the program. These rates can be viewed daily by participating lenders and borrowers alike on the Agency’s website (www.schousing.com) and will be updated on a weekly basis.
In order to more effectively serve our customers, lenders will be required to pre-qualify potential borrowers by verifying income and credit worthiness before reserving funds. All loan reservations are valid for 90 days from the date of reservation and will be considered to be interest rate lock-ins by the Authority.
Three tiered interest rate options will be available to borrowers including individuals, families, and single parents. Maximum income limits range from a low of $16,150 to a high of $78,260. Maximum purchase price limits for new construction as well as existing homes on permanent foundations are $160,176 to $199,500, depending on county. (Editor: Fact Sheets and Rates by County attached.)
Two new restructured Down Payment Assistance Loans (DPA) are also available. The first will be for a $3,000 loan consisting of $2,000 in forgivable HOME Program funds, joined with a $1,000 repayable DPA loan. Through this DPA loan the borrower will only be responsible for repayment of $1000. A $2,000 Down Payment Assistance Loan that must be repaid is also offered. Repayment of this loan will be deferred for three years. The interest rate is 4 percent, but no interest accrues until repayment begins. Both loans will be offered statewide for borrowers at or below 80 percent of the median income.
“As the state’s economy changes, the State Housing Authority has to be in a position to respond quickly and effectively,” said State Housing Chairman Charles I. Small. “By being able to adjust our interest rates to remain competitive, we can better serve our customers.”
These loans are available through a network of over 100 participating lenders, credit unions, and brokers. Loan terms can be for 15, 20, 25, or 30 years and the interest rate will be good for the life of the loan. The mortgage loans are available to first time homebuyers who have not owned a home in the past three years. That provision is waived in targeted counties of the state and for the Single Parent Loan Program. (See Website for Fact Sheets)
The South Carolina State Housing Finance and Development Authority is the state’s leading provider of capital for affordable housing. The Authority is a self-supporting agency of state government operating at no cost to the taxpayers of South Carolina.
Equal Housing Opportunity