How to Use a VA Loan to Buy a Home in South Carolina

For military service members, veterans, and their families in South Carolina, VA loans offer an exceptional pathway to homeownership. These government-backed loans provide significant benefits that make purchasing a home more accessible and affordable. If you’re eligible for a VA loan and looking to buy a home in South Carolina, this guide will walk you through the process, requirements, and advantages of this valuable benefit.

Understanding VA Loans

VA loans are mortgage loans guaranteed by the U.S. Department of Veterans Affairs (VA) but issued by private lenders, including banks, credit unions, and mortgage companies. The VA guarantee means that if you default on your loan, the VA will reimburse the lender for a portion of the loss, reducing the lender’s risk and allowing them to offer more favorable terms.

Key Benefits of VA Loans in South Carolina

1. No Down Payment Required

Perhaps the most significant advantage of a VA loan is the ability to finance 100% of the home’s purchase price. Unlike conventional loans that typically require 5-20% down, or FHA loans that require at least 3.5%, eligible veterans can purchase a home with zero money down in many cases.

2. No Private Mortgage Insurance (PMI)

VA loans don’t require PMI, which is typically required on conventional loans when the down payment is less than 20%. This can save borrowers hundreds of dollars each month.

3. Competitive Mortgage Loan Rates

VA loans often offer lower interest rates compared to conventional mortgages. With South Carolina’s competitive housing market, securing a lower rate can make a significant difference in your monthly payment and the total cost of your home over time.

4. Limited Closing Costs

The VA restricts certain closing costs that veterans can be charged, and sellers can pay all of a buyer’s closing costs and concessions, up to 4% of the home’s value.

5. Flexible Credit Requirements

VA loans typically have more forgiving credit requirements than conventional loans. While VA home loan lenders in South Carolina may have their own minimum credit score requirements, the VA itself doesn’t set a minimum credit score.

Eligibility for VA Loans

To qualify for a VA loan in South Carolina, you must:

Be an active-duty service member, veteran, or surviving spouse of a veteran who died in service or from a service-connected disability
Meet the VA’s service requirements:
- 90 consecutive days of active service during wartime
- 181 days of active service during peacetime
- 6 years of service in the National Guard or Reserves
- Be the spouse of a service member who died in the line of duty or as a result of a service-related disability
Have a valid Certificate of Eligibility (COE)
Meet the lender’s credit and income requirements
Plan to use the home as your primary residence

Step-by-Step Process to Use a VA Loan in South Carolina

Step 1: Obtain Your Certificate of Eligibility (COE)

Your COE verifies to lenders that you qualify for a VA loan. You can apply for your COE through the VA’s eBenefits portal, by mail using Form 26-1880, or through your lender, who can often obtain it electronically within minutes.

Step 2: Find a VA-Approved Lender

Not all South Carolina mortgage lenders work with VA loans, so it’s important to find one with experience in VA lending. Don’t worry, your broker can help with this. They’ll look for lenders who:

Are approved by the VA
Have experience with VA loans
Understand the unique needs of military borrowers
Offer competitive mortgage loan rates

Step 3: Get Pre-Approved

Pre-approval gives you a clear idea of how much house you can afford and shows sellers you’re a serious buyer. To get pre-approved, you’ll need to provide:

Proof of income (pay stubs, W-2s, tax returns)
Bank statements
Employment verification
Your COE
Photo ID

Step 4: Find a Home and Make an Offer

Once pre-approved, work with a real estate agent familiar with VA loans to find a home that meets your needs and the VA’s Minimum Property Requirements (MPRs). These requirements ensure the home is safe, sanitary, and structurally sound.

When making an offer, your agent can help you negotiate terms that work with VA financing, including asking the seller to pay some or all of your closing costs.

Step 5: Complete the VA Appraisal and Home Inspection

After your offer is accepted, the lender will order a VA appraisal to determine the home’s value and ensure it meets the VA’s MPRs. This is different from a home inspection, which is not required but highly recommended to identify any potential issues with the property.

Step 6: Finalize Your Loan and Close

Your broker will process your loan application, including:

Verifying your income and employment
Reviewing your credit history
Ensuring the property meets VA requirements
Calculating your debt-to-income ratio

Once your loan is approved, you’ll sign the final paperwork at closing and receive the keys to your new South Carolina home.

VA Loan Limits in South Carolina

As of 2020, the VA eliminated loan limits for veterans with full entitlement. This means eligible veterans can borrow as much as a lender is willing to lend without a down payment, subject to the lender’s requirements and the borrower’s ability to qualify based on income and credit.

For veterans with diminished entitlement (perhaps from a previous VA loan that hasn’t been paid off), loan limits may still apply. In 2023, the standard VA loan limit in most South Carolina counties is $726,200, though limits may be higher in certain high-cost areas.

Special Considerations for South Carolina VA Loans

Property Taxes and Insurance

South Carolina offers certain property tax exemptions for disabled veterans. If you’re a disabled veteran, you may be exempt from paying property taxes on your home. Check with your county tax assessor for specific eligibility requirements.

Flood Insurance

Many areas in South Carolina, particularly along the coast, are in flood zones. If you’re buying in these areas, you may be required to purchase flood insurance, which is not included in standard homeowners’ insurance policies.

Hurricane Considerations

Given South Carolina’s vulnerability to hurricanes, homes in coastal areas may require windstorm insurance, which can increase your insurance costs.

Working with VA Home Loan Lenders in South Carolina

When choosing a lender for your VA loan, consider:

Experience with VA loans
Competitive mortgage loan rates
Customer service quality
Speed of loan processing
Understanding of military needs

Your Trusted VA Loan Partner in South Carolina

VA loans offer eligible service members, veterans, and their families an exceptional opportunity to purchase homes in South Carolina with favorable terms. With no down payment requirements, competitive interest rates, and limited closing costs, these loans can make homeownership more accessible and affordable.

If you’re considering using a VA loan to purchase a home in South Carolina, BrickWood Mortgage Inc. specializes in helping veterans navigate the VA loan process. With deep experience in VA lending and a commitment to serving those who have served our country, our team can help you achieve your homeownership goals.

For personalized assistance with your VA loan in South Carolina, contact us at 843-314-4101 today. Our experts will guide you through every step of the process, from obtaining your Certificate of Eligibility to closing on your new home.