FHA Home Loans in South Carolina

A First-Time Home Buyer Guide

Thinking of buying Myrtle Beach real estate? Perhaps you have found a great investment property in Surfside Beach, Charleston, Mt Pleasant, and other areas, and are in need of a bit of guidance from one of the best FHA mortgage loan lenders in SC; we are your local mortgage lender serving the Grand Strand area and beyond. Buying a house as a first-time home buyer can be overwhelming. It gets more complicated when you have to choose one loan type among a list of different loan types. However, BrickWood Mortgage is here to help. Approximately 95% of the home-buyers use four loan types. These are:

  • Conventional loans
  • Federal Housing Administration (FHA) home loans
  • Department of Veterans Affairs (VA) home loans
  • U.S. Department of Agriculture (USDA) home loans

If you’re considering and looking for the best FHA loans in SC, this guide will help you understand how to qualify for the program, get approved and close on your dream South Carolina home or commercial property.

What are the FHA Loan Requirements in SC?

A Federal Housing Administration (FHA) loan is a type of home mortgage that is insured by the government and issued by FHA-approved lenders. FHA home loans include lower credit and down payment requirements for qualified home buyers (Calculate down payment with our Mortgage Calculator SC tool). Some of the basic requirements for FHA loan programs in SC include:

  • FICO® score at least 580 to get a 3.5% down payment.
  • MIP (Mortgage Insurance Premium ) is required.
  • Debt-to-Income Ratio should be less than 43%.
  • The home must be the borrower’s primary residence.
  • Borrower must be able to document income.

Compare FHA mortgage to a traditional home mortgage

Should you consider getting a FHA mortgage over a traditional mortgage? Here are some comparisons to help you decide better:

  • Traditional mortgages require at least 5% down payment whereas FHA mortgage loan requirements in SC call for as little as 3.5% down payment.
  • FHA loans allow lower credit scores as low as 500 and still qualify unlike traditional loans.
  • Traditional mortgages require mortgage insurance if you put less than 20% down whereas FHA mortgages always require mortgage insurance which is paid in two sections. The first section is paid upfront at closing, the second needs to be paid annually for the life of your loan.
  • FHA mortgages have lower loan limits than traditional loans depending on what county you’re financing in.

Pros and cons of FHA loans in SC

Home purchase is a big decision and there are different factors to consider while buying your South Carolina home. Here are some pros and cons to help you make right decision:

Pros

  • Most important pro of a FHA loan is it requires as little as 3.5% down payment.
  • FHA loans reduce your monthly payment by offering interest rates at or below conventional loan rates – Use our South Carolina Mortgage Calculator tool.
  • FHA loans are easier to get compared to other types so if you have bad credit or a bankruptcy in your past, FHA loans might be right for you.

Cons

  • FHA loans require mortgage insurance.
  • FHA loans can only be used for primary residence for single-family and multi-family homes.
  • FHA loans have lower lending limits than traditional loans

Is an FHA mortgage right for you?

Ask yourself these five questions before you make your big decision:

  • Do you have a limited down payment?
  • Is your future home your primary residence?
  • Do you want a loan that offers competitive rates?
  • Will your new home loan amount be within South Carolina FHA loan limits?
  • Do you have a less than perfect credit history?

If you answered yes to most of these questions, then an FHA loan might be a good fit for you. Call the BrickWood Mortgage experts at (843) 314-4101 to discuss your best South Carolina FHA home loan options and get a step closer to your dream home. We are local and one of the top FHA loan lenders near Myrtle Beach, SC, call today!

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