South Carolina FHA Loans

For anyone considering a move to South Carolina, there has never been a better time than now to apply for an FHA loan. The Federal Housing Administration (FHA) went into effect in 1934 when foreclosures were at an all time high. During that time, the FHA helped American families avoid losing their homes and also find affordable loans to purchase new houses. In the more than seventy years of operation, the FHA has helped make homeownership a reality for millions of Americans.

Conventional Loans vs. FHA Loans

The biggest advantage that FHA loans have over conventional loans is the low down payment feature. The FHA only requires a 3.5% down payment on any new house whereas conventional loans can sometimes require as much as 20%. This makes it possible for young families and first time homebuyers to afford new homes even if they haven’t spent very much time saving up for a house.

Additional Benefits

It is possible to find some conventional loans with a low down payment, but you will often find that the lender compensates by raising the interest rate and requiring private mortgage insurance (PMI) on the loan. With an FHA loan you will be able to take advantage of competitive interest rates and you won’t have to pay for PMI. This makes the overall cost of the loan much lower than a conventional loan. The other benefits include flexible repayment options, streamline refinancing and easy approval.

Loan Limits

How big of a loan you can qualify for depends on three factors: your financial situation, the number of units on the property and the county’s loan limits. The FHA sets a different limit for every county in South Carolina. To find out what the loan limit for you county is, be sure to check out the website for the US Department of Housing and Urban Development (HUD).

How to Get Started

Before you start looking for you new house and researching potential lenders, it’s a good idea to get pre-approved for a loan. With a pre-approval you will get to see how big of a loan you can qualify for and you will know if you meet the lender’s requirements.

We would love to help you start on the road to homeownership today. Take a minute to fill out our FHA form and we’ll have you pre-qualified for free in minutes.

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