When you get ready to buy your first home, if you’re like most people, you have lots of questions. While navigating the journey toward homeownership is exciting, it can be confusing for a first time home buyer South Carolina resident. Fortunately, buying a home in South Carolina doesn’t have to be stressful. Community resources are out there to help you gather information you need to make informed decisions about lenders and different mortgage loan products. If you’re willing to invest some time doing your due diligence, you may qualify for thousands of dollars in discounts, incentives, grants, and tax credits to make buying your first dwelling more affordable.
Not sure where to get started?
Most grants, low-interest loans and first time home buyer South Carolina tax incentive programs require buyers to have a letter of pre-approval for a mortgage before you can apply. Did you know qualified applicants can save thousands of dollars over the life of their mortgage by choosing the right lender and an experienced real estate agent who has the resources and expertise to help you negotiate closing costs and direct you toward resources to help you reduce your tax burden? A great starting place is to talk to local financial institutions about special programs they participate in for first time buyers.
Here are six of the most popular programs in South Carolina.
This program empowers South Carolinians to reduce their tax burden up to $2,000 per year, as long as they are financing, and occupying, a primary residence. That’s money you can put in your pocket to make home improvements, buy a car, invest in your education, or do whatever you want to do with the money. You have to buy the privilege, but sellers can assume the liability and pay the fee at closing.
#2 HUD Housing Choice Voucher Program for South Carolina First Time Homeowners
According to the U.S. Department of Housing and Urban Development (HUD), even people with a very low income can buy their first home through the Homeownership Choice Voucher Program. Assistance is available to help first-time home buyers convert an existing rent voucher to a home purchase voucher that may be applied to homeownership expenses or meet the monthly mortgage. To get more information about eligibility and location-specific programs, contact your local Public Housing Agency (PHA) or visit the hud.gov pages.
#3 Individual Development Accounts (IDA) Options Help Buyers Save for Their First Home
Incentives come in a variety of packages. While there are many federal and state programs to make homeownership more affordable, local organizations can be valuable resources. Community Works Carolina (CWC) offers a first time home buyer South Carolina program for Upstate residents that includes forgivable five-year loans to reduce the purchase price and up to $4,000 in grants you can use to pay for closing costs. Funds are limited and you must have a pre-approved mortgage before you apply.
CWC administers an Individual Development Account (IDA) program that offers incentives for saving responsibly. Low- to moderate-income individuals can achieve their dream of owning a home by demonstrating they are willing to invest in their own future. If accepted into the program, you will get a 3:1 match rate. In other words, if you attend no-cost financial aid counseling sessions and deposit $25 into a secure account each month, you could increase your purchasing power by $3,000. CWC programs are only available to Upstate residents, so if you don’t live in the Greenville/Spartanburg area, talk to your local real estate agent and lenders about IDA opportunities in your desired neighborhood. Your Movoto agent can tell you about IDA opportunities in other parts of the state.
#4 HouseCharlotte Program
The City of Charlotte and the Charlotte-Mecklenburg Housing Partnership, Inc. teamed up to offer special assistance for low- to moderate-income families looking to purchase a new home in almost 90 neighborhoods in the Charlotte area. Money can be used to cover down payment, closing cost and interest rate buy-downs. Funds are provided through ten-year forgivable loans from $5,000 to $15,000 on properties with a sales price of $155,000 or less. Learn more about special packages for police officers and other eligibility requirements housecharlotteprogram.com.
#5 Accessing South Carolina Tax Credits for Historic Home Purchase & Renovation
If you’re thinking of buying your first home, and you want to invest in a historic home in South Carolina, don’t forget to check out grants and tax incentives to make it easier to renovate your new place. The South Carolina Historic Rehabilitation Incentives Act (Section 12-6-3535) allows homeowners to save up to $10,000 on their taxes over a five year period. To learn more about the requirements and the application process, visit shpo.sc.gov and navigate to the page dedicated to historic home renovation tax incentives by clicking on the “programs” tab and then selecting “tax incentives” from the drop-down menu.
#6 Veterans Administration (VA) Zero Down Guaranteed Loans in South Carolina
Active duty and retired veterans living in South Carolina may qualify for a zero down mortgage to purchase their first home. Since the VA guarantees this type of loan, lenders are typically more willing to offer lower interest rates and terms. Visit benefits.va.gov to learn how to apply and get a list of approved lenders in your area.
Government grants, tax credits, and regional incentives empower South Carolinians to achieve their dreams of owning a home. The key to finding a great deal on a new home, and making sure you can afford it, is finding professionals to help you navigate the process. It is imperative that you learn everything you can about buying a house and the mortgage process early in this journey. The good news is that you don’t have to make the journey alone. Special programs are out there for veterans, law enforcement personnel and investors in all income tiers. Remember to ask for information about regional incentives. If you are still a bit confused about the home buying process, read this Movoto article for more details and tips to create a personal checklist.
2 Point Highlight
In other words, if you attend no-cost financial aid counseling sessions and deposit $25 into a secure account each month, could increase your purchasing power by $3,000.
The South Carolina Historic Rehabilitation Incentives Act (Section 12-6-3535) allows homeowners to save up to $10,000 on their taxes over a five year period.
