They also offer competitive interest rates, access to first-time homebuyer resources and down payment assistance, and even a streamlined refinance option for down the road. Backed by the Federal Housing Administration, these mortgages offer many benefits, including more lenient credit score criteria and very low down payments. Why choose an FHA loan?įHA loans are a great way for new homebuyers to unlock homeownership. Here’s everything you need to know about getting an FHA loan in South Carolina. No matter where you’ve set your sights across the Palmetto State, there’s a mortgage out there to meet your needs. ![]() Depending on your location, you can typically borrow $472,030 for a single-family home, although the limit is higher in more expensive areas like Charleston. We’ll explore the details of FHA loans specifically for South Carolina residents, especially first-time homebuyers, low-to-moderate-income families, and those with less-than-perfect credit. Instead, talk to our professionals and get tailored advice.If you’re dreaming of becoming a homeowner but feeling overwhelmed by the complexities of the mortgage market, this guide is for you. Once again, don’t just assume that an FHA loan won’t work for your situation. Lower Lending Limits – Lastly, you will find that FHA loans have lower lending limits compared to traditional loans. For both single-family and multi-family homes, FHA loan requirements in South Carolina stipulate that you cannot use the property as a secondary residence or investment property. Primary Residence Only – While this won’t be an issue for some, you can only use an FHA loan if you plan to use the property as your primary residence. When working with an expert, you will need to consider that the insurance policy will likely be active on your FHA loan for its life. Essentially, this loan is used so that the FHA is protected if you were to default on the loan. Thereafter, the second section is paid per year for the life of the loan. Paid in two sections, you will need to pay the first when closing on a property. With an FHA loan, you cannot avoid mortgage insurance. As an example, you could pay a 25% down payment and mortgage insurance wouldn’t be necessary. On the other hand, traditional mortgages only require this type of insurance if you pay less than 20% as a down payment. ![]() Mortgage Insurance Requirement – As noted above, there is a requirement of mortgage insurance regardless of the down payment. This being said, here are some potential cons of FHA loans. Of course, working with an expert like BrickWood Mortgage can help you to overcome potential issues and make the right decision. To make an informed decision, you also need to consider the potential problems of an FHA loan in South Carolina. Rather than potentially missing out on a fantastic opportunity, contact BrickWood Mortgage today even if your past prevents you from obtaining conventional loan options. ![]() With easier FHA loan requirements in South Carolina, this means that you may qualify even if you have bad credit or a bankruptcy in your past. More Favorable Qualification – Next, FHA loans are also easier to get when compared to other types of loans. Once you’ve entered the details, click ‘Calculate Monthly Payment’ and you will see that an estimated monthly mortgage payment appears. When using the tool, all you need to do is enter the loan amount, interest rate, and payment term in years. If you want to learn more about what you can expect to pay with a mortgage, be sure to use our South Carolina Mortgage Calculator tool now. Lower Monthly Payments – Furthermore, there is more good news because FHA lenders in South Carolina can generally help customers to get lower interest rates compared to conventional loans. Consequently, it’s perfect for those with limited savings you don’t have to choose between your savings and the quality of the property. Rather than having to find 5% or even more, many people with an FHA loan qualify with as little as 3.5%. Smaller Required Down Payment – Firstly, you can normally get a mortgage with a much smaller down payment. With knowledge of the pros and cons, you can make a more informed decision. With this in mind, we’ve compiled a list of some of the most important benefits of an FHA loan in Surfside Beach, South Carolina or wherever else you may be. When buying a home, there are lots of big decisions to make (you don’t need us to tell you this).
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