South Carolina First-time Home Buyer

South Carolina First time home buyer

Currently, the average home value for a first-time home buyer in South Carolina is $178,000 and the appreciation rate is 7%. With an average rent payment of $1,100 per month, you can purchase a $178,000 home using a 3% Down Payment Program for a mortgage payment of about $1,119* per month. That is about the same amount as the average rent. Read on to know everything about the first-time home buying process in South Carolina.

Trusted. Experienced. Secure.

What is a first-time homebuyer?

First-time homebuyers are those who buy a principal residence for the very first time. State and federal governments often provide special benefits to first-time homebuyers, such as low down payments, special grants, and assistance with closing costs. Additionally, many lenders provide incentives and special loans for first-time homebuyers.

One who buys a home for the very first time is generally referred to as a first-time homebuyer. The home is deemed the homebuyer’s primary residence because it is the place where the person resides.

Additionally, they may refer to it as their primary residence or main residence. 


How to qualify for a first-time homebuyer grant in South Carolina?

You may be able to buy a house sooner if you live in South Carolina because NCHFA programs offer unique benefits. To qualify for a first-time homebuyer grant in South Carolina, you must follow the below-mentioned eligibility criteria:

  • This loan requires a credit score of at least 640.
  • Sales price and borrower income must be within the program’s limits.
  • An overall debt-to-income ratio of 43% or less is required.
  • Educating homebuyers may be necessary.
  • When the down payment is less than 20%, mortgage insurance is required.


Who is considered a first-time home buyer in South Carolina?

NCHFA’s NC Home Advantage Mortgage is available to both first-time home buyers and existing homeowners. A first-time homebuyer in South Carolina is someone who hasn’t owned a home in three years.

A fixed-rate mortgage is available – either conventional, FHA, VA, or USDA – and up to 5 percent of the down payment can be repaid. The assistance comes in the form of a no-interest second mortgage that doesn’t need to be repaid unless you sell your home or refinance or pay off your first mortgage within the first 15 years.

To qualify as a first-time home buyer in South Carolina, you must meet the following requirements:

  • You earn less than $92,000 per year.
  • The credit score of your account is 640 or higher.
  • You have a debt-to-income ratio of no more than 43 percent.
  • The purchase is either a single-family home, a townhouse, condo, duplex (FHA loan only), or a new manufactured home (FHA, VA, or USDA loan, with a minimum credit score of 660).


How to apply as a first-time home buyer in South Carolina

No matter where you buy your first home, it’s a nerve-wracking experience. It’s a good thing that you aren’t alone in this.

First–time home buyers in South Carolina have plenty of assistance and education available. Also, the Old South State offers a wide range of financial assistance programs for down payments and (sometimes) closing costs.

As a first-time buyer in South Carolina with at least a 20% down payment, you can qualify for a conventional loan with a low-interest rate. Plus, you will never be required to pay private mortgage insurance (PMI). Usually, first-time buyers do not have enough cash to make a down payment of 20%. Fortunately, you don’t have to put down that much. To apply as a first-time home buyer in South Carolina, you need to qualify for the following eligibility criteria:

  • At least a 640 credit score is required.
  • The borrower’s income and sales price must be within program limits.
  • Generally, the debt-to-income ratio should be 43% or less.
  •  It may be necessary for homebuyers to receive an education.
  • In the case of a down payment of less than 20%, mortgage insurance is required.

However, there are many other programs that are more flexible if you don’t meet these requirements.


How much down payment for a first-time home buyer in South Carolina?

The “minimum” down payment for a conventional loan requires a 3% down payment with a minimum score of at least 620. However, an approval with that score and down payment is unlikely.  The Federal Government may not require you to make a down payment if you qualify for a VA loan (backed by the Department of Veterans Affairs) or a USDA loan (backed by the United States Department of Agriculture).

Zillow reports that the average home price in South Carolina was $248,950 in June 2021. The average price was 15.4% higher than one year earlier.


South Carolina First Time Home Buyer Overview 

Average Home Sale Price in NC $248,950
Minimum Down Payment in NC (3%) $7,470
20% Down Payment in NC $49,790
Average Credit Score in NC1 703
Maximum NC Home Buyer Grant2 Up to 5% of the loan amount


How much house can I afford first-time homebuyers in South Carolina?

An individual’s ability to qualify for a mortgage is determined by how much house he or she can afford. During the homebuying process, it is important to know how much you can comfortably spend on a new mortgage while still meeting your existing obligations.

Homebuying is a major investment that will impact your finances for the next 15 to 30 years. In order to avoid incurring a mortgage you can’t afford in the long run, you need to be realistic about your income and expenses.

There are several factors that will determine how much house you can afford:

  • The amount of your loan and the length of your mortgage
  • How much you earn monthly and annually
  • The amount you owe each month, including credit card debt, student loans, car payments, child support, and other bills
  • Property taxes, which vary by state and are paid yearly or bi-annually
  • The current mortgage rates and closing costs based on your location
  • Condo fees and homeowners associations (HOAs).


To get more information or get Prequalified click Cain Mortgage Team or contact us today at 803 261 9267!


South Carolina Geographic Info

South Carolina is a state in the United States’ coastal Southeastern region. North Carolina borders it to the north, the Atlantic Ocean to the southeast, and Georgia to the southwest across the Savannah River. According to the 2020 census, South Carolina is the 40th largest and 23rd most populated state in the United States, with a population of 5,124,712. Its GDP was $213.45 billion in 2019. There are 46 counties in South Carolina. Columbia, the state’s capital, has a population of 133,273 people in 2019, while Charleston, the state’s largest city, has a population of 150,277 people in 2020. With a population of 906,626 people, the Greenville–Anderson–Mauldin metropolitan region is the most populous in the state.

According to the 2020 census, the state’s population was 5,118,425. On July 1, 2019, the United States Census Bureau estimated that the population of South Carolina was 5,148,714 people, up 11.31 percent from the 2010 census.

According to the 2017 census, the state’s racial makeup is 68.5 percent white (63.8 percent non-Hispanic white), 27.3 percent black or African American, 0.5 percent American Indian and Alaska Native, 1.7 percent Asian, 0.1 percent Native Hawaiian and other Pacific Islander, and 1.9 percent of people of two or more races. A total of 5.7 percent of the population was Hispanic or Latino of any race.

According to the United States Census Bureau, South Carolina’s population was predicted to be 5,148,714 in 2019, up 64,587 from the previous year and up 523,350, or 11.31 percent, since 2010. Immigration from outside the United States resulted in a net rise of 36,401 individuals, while internal migration resulted in a net increase of 115,084 people. South Carolina’s foreign-born population expanded faster than any other state between 2000 and 2005, according to the University of South Carolina’s Arnold School of Public Health’s Consortium for Latino Immigration Studies. The state of South Carolina has outlawed sanctuary cities.