The Official Website of the South Carolina State Housing Finance & Development Authority

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General Loan Information

All South Carolina State Housing Finance and Development Authority Loans are fixed rates with down payment assistance available for qualified borrowers. All loans are required to have an escrow account for the payment of insurance and taxes. All payments are due the first day of each month and considered late 15 days past the 1st.

Loan Types

  • Conventional or FHA Loans

Mortgage Insurance Required

  • FHA loans must have FHA Mortgage Insurance
  • Conventional loans with an LTV over 80% are required to carry Private Mortgage Insurance. SC State Housing has reduced the mortgage insurance rate for qualified borrowers. Mortgage insurance can only be dropped from a loan when the LTV of the loan reaches 80%. This is based on the current loan balance and the original loan amount or appraisal which ever is less.

Minimum Credit Score

  • A minimum of 620 with a (FNMA) Desktop Underwriter or (FHLMC) Loan Prospector Approval. Ratios do not apply with automated approvals. The 620 minimum credit score does not automatically approve a borrower for a South Carolina State Housing Finance and Development Authority loan. This is the minimum requirement for SC State Housing to review a loan application for a possible loan approval.

Qualification Ratios for Borrowers with no credit scores

  • If the borrower does not have traditional credit meaning that they do not have enough credit to generate a credit score alternative; credit can be used. A borrower will need 4 credit items which should include rent, utilities and or cell phone. These items must have a minimum of 12 months of history and have no late payments. The ratios below are minimum requirements; the “29” means the borrower's total house payment cannot be more than 29% of the borrower's total gross income. The “42” means the borrower's total monthly payments such as credit card bills and loan payments and the borrower's house payment cannot be more than 42% of the borrower's total gross income. The 42% does not include utilities.

  • Qualification ratios of 29/42 apply with Mortgage/Down Payment Assistance
  • Qualification ratios of 31/42 apply without Mortgage/Down Payment Assistance

Loan Term

  • 15, 20, 25, 30 years

Down Payment

  • All South Carolina State Housing Finance and Development Authority loans require minimum down payments of 3%. These funds can come from SC State Housing's down payment assistance, other housing agencies, non profit organizations, cash gifts or from your own savings. SC State Housing does not allow down payment assistance to come from companies that require a donation to receive the funds. Gifts of equity are allowed when purchasing a home from a relative that has owned the home for five years or more.

Cash Back

  • Borrower(s) cannot receive cash back at closing but can receive any funds contributed to the deal, such as earnest money or upfront application fees.

Closing Costs

  • A lender can only charge a maximum of 1% origination fee. Prepaid items and usual and customary closing costs are allowed. The seller can pay up to 6% of the sales price for closing costs. The seller cannot pay any part of the borrower's down payment.

Property Eligibility

  • Eligible properties are stick built single-family dwellings, townhouses, condominiums or new off-frame modular homes. All properties must be located in South Carolina.

Prepayment Penalty

  • None

Assumption

  • First mortgage loans are assumable by a qualified borrower. Down payment assistance loans are not assumable.

Federal Recapture

  • Loans are subject to Federal Recapture. Effective with all loans closed on or after July 1, 2006, SCSHFDA will reimburse any borrower that is required to pay recapture to the IRS. (See manual for further information).