Many locations in South Carolina are still eligible for 100% USDA financing. USDA Rural Housing is a great way for SC first-time homeowners to purchase a home with no money down! USDA does have some loan-qualifying guidelines that homebuyers will want to be aware of:
- USDA Down Payment – 100%, $0 down payment! USDA and VA loans are the only remaining 100% home loans in South Carolina. The advantage of USDA is the program is available to all approved home buyers, not just veterans like VA loans.
- Not Just for First Time Buyers – USDA is also for seasoned home buyers, you are not required to be a first-time homeowner.
- USDA Loan Limits – There is no max loan amount with USDA Rural Development loans, buyers are approved based on their debt-to-income ratios. Generally, buyers should have a housing expense with taxes and insurance of no more than 30% of their gross monthly income.
- Credit scores – 620 min credit score is required by most lenders and banks. In addition to the minimum credit score requirement, mortgage companies will prefer no repeated late payments on any credit lines within the last year. No short sales, foreclosures, or bankruptcies within the last three-year time frame.
- Income limits for Rural Housing USDA – For most counties the household limit for 1-4 members is $110,650 gross income per year. Some counties in other states are even higher. Households with 5+ members can make even more, over $146,050 per year in some counties. Households will also have deductions for children, childcare, elderly, disabilities, etc. Important to remember, the income limits do apply to ALL members of the household who earn income regardless if they are on the loan application or not. Please call us to review in detail if you think you are close to the limit. We are always happy to assist.
- USDA Loans & Employment History – Stable 2-year history of documentable income. Students that have recently completed college and starting working do not need to meet this requirement. Applicants are ok if they have moved jobs, as long as they have no extended gaps of employment.
- How long does the USDA closing time – As of 2024 the USDA closing time is around 30 days from the time the buyer is in contract to purchase a home.
- Eligible USDA Property – Any single-family residence located in a USDA-eligible area regardless of the home seller. The home being purchased can be a short sale, foreclosure, by owner, etc.
- NOTE: Existing mobile homes are NOT permitted. The home must be a primary residence, with no investment or rental purchases.
- Current USDA homeowners also have special refinance options available.
Call us 7 days a week to learn more or to apply. We are happy to service buyers nationwide including SC: Columbia, Charleston, North Charleston, Mount Pleasant, Rock Hill, Greenville, Summerville, Sumter, Goose Creek, Hilton Head Island, Florence, Spartanburg, Aiken, Myrtle Beach, Greer, Anderson, Mauldin, Greenwood, Socastee, Taylors, North Augusta, St. Andrews, Hanahan