Are you struggling to afford a home in South Carolina? Before you give up the search, consider looking into an FHA-insured loan.
Loans backed by the Federal Housing Administration (FHA) can be a huge help to buyers with limited income or savings. For a single-family home in South Carolina, you can potentially qualify for an FHA loan of up to $498,257 or even $586,500 (depending on your county) with low credit and a down payment as low as 3.5%.
The FHA mortgage program makes buying a home more affordable for many South Carolina residents. FHA loans require lower down payments and credit scores than conventional mortgages. If your budget is tight, FHA financing can help you become a homeowner.
This comprehensive guide covers everything you need to know about getting an FHA loan in South Carolina. We’ll discuss eligibility, loan limits, down payments, requirements, and the application process. Read on to learn if an FHA mortgage is right for you.
Overview of FHA Loans
FHA loans are government-insured mortgages backed by the Federal Housing Administration (FHA). Because the FHA guarantees these loans against default lenders can offer more flexible terms.
Key advantages of FHA loans include
- Down payments as low as 3.5%
- Lenient credit score requirements
- Low mortgage insurance costs
- No income limits
- Fixed interest rates and monthly payments
In South Carolina, FHA loans work for buying single-family homes, condos, multifamily properties, and manufactured housing You must occupy the home as your primary residence
FHA mortgages are ideal if you want to buy with minimal cash or have past credit challenges. Conventional loans typically require higher scores and down payments.
South Carolina FHA Loan Limits
The maximum FHA loan amount you can borrow depends on limits set by county across South Carolina. High-cost areas have higher caps.
For a single-family home in 2023, FHA loan limits in South Carolina range from:
- Floor: $472,250
- Ceiling: $981,700
The floor and ceiling change annually based on home prices nationwide. Check our FHA loan limit tool to look up caps in your county.
You can also use FHA financing to buy multifamily homes with 2-4 units. The low down payment requirement applies.
Minimum FHA Down Payment in South Carolina
One big advantage of FHA mortgages is the low down payment requirement. Here are the current minimum down payments:
- 3.5% – For borrowers with credit scores of 580 and above
- 10% – For borrowers with credit scores below 580
So on a $300,000 home purchase, you could put down just $10,500 if your credit score meets the 580 cutoff. This lower entry cost makes buying more feasible.
Gifts, grants, and seller contributions can fund your entire down payment. However, you must contribute a minimum 3.5% of your own funds.
FHA Loan Requirements in South Carolina
To qualify for an FHA mortgage, you’ll need to meet certain requirements:
Credit Scores – Most lenders want scores of at least 580. The FHA minimum is 500. Weaker scores need 10% down.
Debt-to-Income Ratio – Your total debt payments cannot exceed 43% of gross monthly income.
Home Types – Eligible properties include single-family homes, condos, multifamily, and manufactured housing.
Occupancy Status – You must use the home as your primary residence. Investment properties don’t qualify.
Loan-to-Value – You can finance up to 96.5% of the home’s value with an FHA loan.
Mortgage Insurance – Upfront and annual mortgage insurance premiums are required.
First-Time Homebuyers – Must complete a HUD-approved counseling program before closing.
Shop lenders that work with lower credit scores and income levels to boost approval odds. The FHA tries to serve underserved communities.
How to Apply for an FHA Loan in South Carolina
Follow these key steps when applying for an FHA mortgage in South Carolina:
1. Check Your Eligibility
Use FHA loan limit and income lookup tools to confirm you meet requirements.
2. Shop for the Best Lender
Compare banks, credit unions, online lenders, and brokers. Ask about credit score and down payment flexibility.
3. Get Pre-Approved
Work with your lender to assess affordability and get pre-approved before making offers.
4. Find a Home
Search for FHA-eligible homes once pre-approved. Condos and multifamily properties now qualify more easily.
5. Make an Offer
Make your offer contingent on securing FHA financing. Ask the seller to cover allowable closing costs.
6. Complete the Full Application
Work with your lender to complete the full mortgage application and submit documentation.
7. Close on Your Home
The lender will order the appraisal and finalize the loan once approved. Then you can close!
The entire process typically takes 30-60 days from application to closing. Get help from a lender familiar with FHA loans in South Carolina.
Pros and Cons of FHA Loans in South Carolina
FHA financing has many benefits that make buying a home easier:
Pros
- Low 3.5% down payments
- More flexible credit requirements
- Ideal for first-time homebuyers
- Lower monthly mortgage insurance
- Fixed interest rates and payments
Cons
- Requires upfront and annual mortgage insurance premiums
- Higher interest rates than conventional loans
- Strict appraisal and underwriting standards
- Can’t remove mortgage insurance until you hit 78% loan-to-value
An FHA loan lets you buy with less cash down and lower credit scores. Just weigh the pros and cons when choosing your mortgage.
Alternatives to FHA Loans in South Carolina
FHA mortgages aren’t the only financing option for South Carolina homebuyers. Here are some alternatives to consider:
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Conventional 97 – 3% down payment conventional loan also available.
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VA Loans – No down payment required if you are a qualifying military member or veteran.
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USDA Loans – 100% financing available in eligible rural areas only.
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HomeReady Mortgages – 3% down payment conventional loan from Fannie Mae with income limits.
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Down payment assistance programs – First-time buyer grants and loans help cover your down payment.
Compare rates and costs to see if these options beat FHA mortgage terms. An FHA loan provides more flexibility for many.
Is An FHA Loan Right for You?
FHA mortgages can be a great fit if you want to buy a home in South Carolina with:
- A small down payment
- Less-than-perfect credit
- A moderate income
- Flexible debt-to-income ratios
- A condo or multifamily property
Carefully compare FHA loan costs, terms, and limitations to pick the optimal mortgage for your situation. Get pre-approved to see actual rate quotes.
With minimal cash out of pocket and more relaxed standards, an FHA loan gives more South Carolina residents the opportunity to become homeowners.
Frequency of Entities:
fha: 41
loans: 28
south: 16
carolina: 16
down: 15
loan: 14
limits: 11
payments: 9
credit: 8
mortgage: 7
requirements: 6
lenders: 5
payment: 5
apply: 4
home: 4
scores: 4
buy: 3
eligible: 3
fixed: 3
insurance: 3
interest: 3
South Carolina FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| ABBEVILLE | $498,257 | $637,950 | $771,125 | $958,350 | $253,000 |
| AIKEN | $498,257 | $637,950 | $771,125 | $958,350 | $297,000 |
| ALLENDALE | $498,257 | $637,950 | $771,125 | $958,350 | $60,000 |
| ANDERSON | $498,257 | $637,950 | $771,125 | $958,350 | $305,000 |
| BAMBERG | $498,257 | $637,950 | $771,125 | $958,350 | $36,000 |
| BARNWELL | $498,257 | $637,950 | $771,125 | $958,350 | $69,000 |
| BEAUFORT | $546,250 | $699,300 | $845,300 | $1,050,500 | $475,000 |
| BERKELEY | $586,500 | $750,800 | $907,550 | $1,127,900 | $510,000 |
| CALHOUN | $498,257 | $637,950 | $771,125 | $958,350 | $245,000 |
| CHARLESTON | $586,500 | $750,800 | $907,550 | $1,127,900 | $510,000 |
| CHEROKEE | $498,257 | $637,950 | $771,125 | $958,350 | $150,000 |
| CHESTER | $498,257 | $637,950 | $771,125 | $958,350 | $420,000 |
| CHESTERFIELD | $498,257 | $637,950 | $771,125 | $958,350 | $113,000 |
| CLARENDON | $498,257 | $637,950 | $771,125 | $958,350 | $165,000 |
| COLLETON | $498,257 | $637,950 | $771,125 | $958,350 | $186,000 |
| DARLINGTON | $498,257 | $637,950 | $771,125 | $958,350 | $180,000 |
| DILLON | $498,257 | $637,950 | $771,125 | $958,350 | $35,000 |
| DORCHESTER | $586,500 | $750,800 | $907,550 | $1,127,900 | $510,000 |
| EDGEFIELD | $498,257 | $637,950 | $771,125 | $958,350 | $297,000 |
| FAIRFIELD | $498,257 | $637,950 | $771,125 | $958,350 | $245,000 |
| FLORENCE | $498,257 | $637,950 | $771,125 | $958,350 | $180,000 |
| GEORGETOWN | $498,257 | $637,950 | $771,125 | $958,350 | $340,000 |
| GREENVILLE | $498,257 | $637,950 | $771,125 | $958,350 | $305,000 |
| GREENWOOD | $498,257 | $637,950 | $771,125 | $958,350 | $170,000 |
| HAMPTON | $498,257 | $637,950 | $771,125 | $958,350 | $60,000 |
| HORRY | $498,257 | $637,950 | $771,125 | $958,350 | $335,000 |
| JASPER | $546,250 | $699,300 | $845,300 | $1,050,500 | $475,000 |
| KERSHAW | $498,257 | $637,950 | $771,125 | $958,350 | $245,000 |
| LANCASTER | $498,257 | $637,950 | $771,125 | $958,350 | $420,000 |
| LAURENS | $498,257 | $637,950 | $771,125 | $958,350 | $305,000 |
| LEE | $498,257 | $637,950 | $771,125 | $958,350 | $63,000 |
| LEXINGTON | $498,257 | $637,950 | $771,125 | $958,350 | $245,000 |
| MARION | $498,257 | $637,950 | $771,125 | $958,350 | $122,000 |
| MARLBORO | $498,257 | $637,950 | $771,125 | $958,350 | $79,000 |
| MCCORMICK | $498,257 | $637,950 | $771,125 | $958,350 | $170,000 |
| NEWBERRY | $498,257 | $637,950 | $771,125 | $958,350 | $133,000 |
| OCONEE | $498,257 | $637,950 | $771,125 | $958,350 | $220,000 |
| ORANGEBURG | $498,257 | $637,950 | $771,125 | $958,350 | $95,000 |
| PICKENS | $498,257 | $637,950 | $771,125 | $958,350 | $305,000 |
| RICHLAND | $498,257 | $637,950 | $771,125 | $958,350 | $245,000 |
| SALUDA | $498,257 | $637,950 | $771,125 | $958,350 | $245,000 |
| SPARTANBURG | $498,257 | $637,950 | $771,125 | $958,350 | $250,000 |
| SUMTER | $498,257 | $637,950 | $771,125 | $958,350 | $165,000 |
| UNION | $498,257 | $637,950 | $771,125 | $958,350 | $69,000 |
| WILLIAMSBURG | $498,257 | $637,950 | $771,125 | $958,350 | $30,000 |
| YORK | $498,257 | $637,950 | $771,125 | $958,350 | $420,000 |
How are FHA loan limits determined?
The FHA uses a formula to set their loan limits each year. In part, their limits are based on home sale prices in each county and metro area. If sales prices in your area rise, the FHA loan limit may increase for the following calendar year. If not, the limit will stay the same.
The FHA’s minimum and maximum loan limits, or the “floor” and “ceiling” limits, are based on the national conforming loan limit from the Federal Housing Finance Agency (FHFA). The annual floor for FHA loans is equal to 65% of the national conforming loan limit and the ceiling is set at 150%.
For 2024, the FHA’s national floor is $498,257 for single-family homes, which is the limit that applies to most counties in South Carolina. That floor is up $26,227 from the amount that was available throughout most of the state in 2023.
South Carolina FHA Loans – How to Qualify
FAQ
What is the downside of an FHA loan?
Is it hard to buy with an FHA loan?
Why is FHA loans difficult?
Can I get an FHA loan in South Carolina?
To qualify for an FHA loan in South Carolina, your home loan must be below the local FHA loan limits in your area. For 2024, the maximum loan limit in South Carolina is $498,257 for a single-family home and $1,127,900 for a four-plex. Limits varies by county. The minimum loan limit is $5,000. Loan limits vary by county and home size.
What is the loan limit for FHA loans in South Carolina?
The loan limit for FHA loans in South Carolina is generally $472,030. However, these limits vary depending on location, number of units, and the cost of housing in certain parts of South Carolina. These are the baseline loan limits in SC:
How much is the FHA floor in South Carolina?
For 2024, the FHA’s national floor is $498,257 for single-family homes, which is the limit that applies to most counties in South Carolina. That floor is up $26,227 from the amount that was available throughout most of the state in 2023.
Can a FHA loan be used for flipping homes in South Carolina?
FHA loans cannot be used for commercial real estate investment purposes or “flipping” homes in South Carolina. Additional restricts apply. Click on the South Carolina map above or the table below to see loan limits in your area.