Making Homeownership More Accessible for Buyers of All Levels
What are Down Payment Assistance Programs and Homebuyer Grants?
Down payment assistance (DPA) programs are often offered by state and local housing agencies and non-profits and are designed to provide financial aid to cover the initial expenses of buying a home.
Who Qualifies for Down Payment Assistance?
While eligibility requirements vary by program, most down payment assistance and grant initiatives focus on helping those who need it most. This includes:
Income Limits: Most programs offer assistance to low-to-moderate income buyers. Your household income usually must be at or below a certain parentage of the Area Medium Income for your desired location.
First-Time Buyer Status: Many programs prioritize first-time buyers. This is not limited to someone who has never owned a home before. The definition of a first-time buyer extends to someone who hasn’t owned a home in the last three years. There are still some programs available to repeat buyers as well.
Credit Score: A minimum credit score is often required for these programs, typically in the 620-640 range, though this can vary based on each specific program’s requirements.
Property Type and Location: Programs may have limits on the maximum purchase price of the home and may be targeted to specific geographic areas.
South Carolina
SC Housing Homebuyer Program: Provides competitive, fixed-interest rate mortgages to eligible low-to-moderate income homebuyers, often used in conjunction with a Down Payment Assistance (DPA) option.
Palmetto Home Advantage: Available for first-time, move-up, and repeat buyers across all counties, offering forgivable down payment assistance options of 0%, 3%, or 4% of the loan amount.
County First Initiative: Offers a special fixed interest rate and forgivable Down Payment Assistance (DPA) to promote homeownership in previously underserved counties.
Don’t let the savings barrier hold you back from your homeownership journey. These are just some of the many grant and down payment assistance options available. Contact our Southern Trust Loan Officer for assistance navigating different programs available and what would best help you with finding your next home.
Additional requirements and qualifications may apply for each state’s Down Payment Assistance and Homebuyer Grants. Consult with your loan officer to see if you qualify.