Navigating USDA Home Loans in South Carolina: An In-Depth Guide

You can use this USDA eligibility map to find USDA-eligible homes in your area. Look up the address you’re interested in purchasing to verify it falls within a rural area, as determined by the U.S. Department of Agriculture.

Buying a home is an exciting milestone, but it can also be a complicated process full of paperwork and requirements. If you’re considering applying for a United States Department of Agriculture (USDA) home loan in South Carolina, this comprehensive guide will provide all the details you need to successfully navigate the program from start to finish.

An Overview of USDA Home Loans

The USDA rural housing program provides affordable mortgages to low- and moderate-income homebuyers in rural and suburban areas. These government-backed loans offer 100% financing with no down payment required. Borrowers work directly with USDA-approved lenders when applying.

Some key advantages of USDA loans include:

Low Interest Rates – Interest rates are set by the government and are consistently lower than conventional loans. Current rates average around 3%.
No Down Payment – You can get a USDA loan without any money down. This helps buyers with limited funds.
Low Mortgage Insurance – Mortgage insurance is required but costs less than other loan programs
Flexible Credit Guidelines – Credit standards are more lenient than conventional loans Minimum 620 FICO score

As you consider USDA financing in South Carolina, be sure you meet all the eligibility criteria in terms of income limits, home location, and credit history. We’ll delve more into these requirements throughout the article.

USDA Loan Availability in South Carolina

USDA loans are not available everywhere. The home you wish to purchase must be located within an eligible rural area as defined by the USDA Rural Development department.

Luckily, much of South Carolina meets the population and location prerequisites set by the USDA. But it’s important to verify your specific address is situated within an approved area before applying.

You can easily check your eligibility by using the USDA’s online address lookup tool here. Simply enter the property address and the map will indicate if it falls under a designated rural zone.

Some tips when using the USDA eligibility map:

Zoom in closely on the map to view boundaries accurately. Rural areas are shown in green.
Check around the perimeter of a property that borders an ineligible urban zone. Being just across the line may qualify you.
Remember that new rural boundaries can be added periodically. So always verify current status.

If a home sits within an eligible rural territory, you can proceed to the next steps of the application process.

USDA Loan Income Limits

In addition to location requirements, USDA loans also have income limits to determine eligibility. These guidelines are based on the median household income in your county and the number of people in your household.

Here are the current income thresholds by household size in South Carolina’s counties:

1-4 person household: $60,900
5-8 person household: $78,600

Your total gross annual household income must be at or below these figures based on family members living in the home. The income caps do not change for different property types.

Fortunately, the income limits set by USDA Rural Development tend to be more generous than other affordable mortgage options. And there are no first-time homebuyer conditions.

Check out the full break-down of income eligibility requirements by county and household size in South Carolina.

Getting Pre-Approved for a USDA Loan

Prior to home shopping, it’s wise to get pre-approved for financing through a USDA lender. This shows sellers you’re a serious buyer and gets the ball rolling on your loan application.

Here are some tips for securing a USDA pre-approval letter:

Find a local lender approved by USDA Rural Development to issue government-backed loans. Not all lenders participate in this program, so search specifically for USDA-authorized banks.
Compile all required financial documents including pay stubs, tax returns, debt balances, and bank statements.
Be prepared to pay for a full home appraisal. This is needed to confirm the property’s value matches the loan amount.
Expect the pre-approval process to take 1-2 weeks. It involves extensive verification of your eligibility.

Having a pre-approval letter in hand allows you to move forward and place an offer when you find the perfect USDA-eligible home in South Carolina.

The USDA Loan Application Process

Once you have an accepted offer on a home, it’s time to proceed with the formal mortgage application. This involves more detailed paperwork and approval steps.

Here is an overview of the USDA loan application process from start to finish:

Application – You’ll provide comprehensive financial, employment, and identification details to your lender. This is used to underwrite your loan eligibility.
Home Appraisal – An appraiser will visit the property to determine its fair market value. The purchase price must align with the appraisal.
Credit Review – Your full credit report will be evaluated including payment history, debts, and credit score.
Verification – Income, assets, and down payment (if applicable) must all be confirmed and documented through third-party sources.
Conditional Approval – The loan underwriter issues conditional approval if you satisfy all requirements up to this stage.
Closing Disclosure – Final loan costs are itemized on the Closing Disclosure form provided 3 business days before closing.
Closing & Funding – You’ll review closing documents and sign the mortgage. Loan funds are wired to complete purchase.

Expect the process to take around 30-45 days with a typical 30-year mortgage term and fixed interest rate. Get ready to hold the keys to your new home!

Tips for a Smooth USDA Loan Application

Applying for a mortgage, especially your first loan, can seem daunting. Here are some pointers to help South Carolina homebuyers navigate the USDA loan process:

Ask your lender to explain all required paperwork and deadlines so you know what to expect.
Get documents in as early as possible. Missing or delayed items create hiccups.
Save and track all statements used to verify income, assets, and credit history.
Be upfront about large debts and understand how it impacts affordability criteria.
Don’t change jobs or open new credit accounts until after closing. This could interfere with approval.
Maintain current income and employment. Major changes must be disclosed and could delay closing.
Make sure the appraised value comes in at or above the negotiated home price to move forward.

With some preparation and organization, the journey to USDA homeownership can be smooth sailing.

Finding a USDA-Eligible Home in South Carolina

As a USDA loan borrower, your home search is narrowed to qualifying rural areas in South Carolina. Here are some tips for locating great USDA-eligible properties:

Drive through potential neighborhoods and towns looking for yard signs. Many real estate agents will advertise if a listing accepts USDA financing.
Search online real estate sites like Zillow and Realtor.com for filters by loan type and location.
Connect with a knowledgeable local real estate agent that specializes in USDA properties. They will auto-populate listings in your search area.
Look just outside the city limits of larger towns which are often close to amenities yet still fall into rural zones. Popular options include Summerville, Lexington, and Goose Creek.
Consider St. Matthews located in hyper-rural Calhoun County if you don’t mind a longer commute to major metro areas.
Search within commuting distance of your workplace. USDA loans have no residency requirements, so you can live in one eligible county and work in another nearby.

With a mix of planning and creativity, you’re sure to locate the perfect USDA-approved home suited to your budget and lifestyle in South Carolina.

Be a Well-Informed USDA Loan Applicant

Owning a home is a worthwhile investment. By understanding the ins and outs of USDA loans, you can feel confident embarking on this exciting next chapter in your life. Here’s to finding the perfect place to call home in one of South Carolina’s beautiful rural communities!

usda loan map south carolina

USDA Eligibility Map: Verify an Address

Areas in red are not currently eligible for a USDA-backed loan.

USDA Loan Property Eligibility Requirements

Though USDA loans are often referred to as rural housing loans, you don’t have to live in the country or purchase farmland to use them. In fact, you might be surprised at just how much of the country is actually eligible for these loans.

According to the Housing Assistance Council, a whopping 97% of U.S. land is located within USDA-eligible boundaries. Those areas claim about 109 million Americans — or around a third of the country’s entire population.*

Buyers in large cities and more densely populated suburbs aren’t eligible for these loans, but many living in surrounding towns and cities may be. An area with a population of 35,000 or less can be considered “rural” in the USDA’s eyes.

The easiest way to determine USDA property eligibility is to look up the address in the map above. Simply type the property address into the tool, press enter, and you’ll see if the home is eligible for USDA financing. If the property shows up in a shaded area of the USDA eligibility map, it is not currently eligible.

USDA Loans | How To Get 100% Financing in NC & SC

FAQ

Can you get a USDA loan in South Carolina?

To qualify for a USDA loan in NC or SC, you must meet the following: Income Limits: You must prove you have a stable income, but your income cannot be more than 15% over the median salary in the area you plan to buy into. United States Citizenship: Permanent residents may also qualify for USDA Home Loans.

How accurate is the USDA eligibility map?

If you already have a specific home in mind, you can use the USDA loan map to check that address. However, just because a property is in an area designated as rural on the USDA loan map, it doesn’t guarantee that you’ll be able to finance it with a USDA loan.

Does USDA have a maximum loan amount?

Even though the USDA Guaranteed Loan has no limit on the amount you can borrow, it’s highly unlikely any borrower could get a USDA Loan for more than $300,000-$400,000. Since the USDA loan is geared towards low-to-moderate income families, they have strict income limits.

What does USDA consider a rural area?

rural towns (places with fewer than 5,000 people and 2,000 housing units), and. urban areas with populations ranging up to 50,000 people that are not part of larger labor market areas (metropolitan areas).