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First time homebuyers may combine State Housing Authority, Stimulus money for down payment - 3/4/2009

Buying a first home is a big step. For most the biggest hurdle is saving enough money for the down payment.  Now low-to-moderate-income South Carolinians may get a big boost toward achieving homeownership from the South Carolina State Housing Finance and Development Authority and the American Recovery and Reinvestment Act. 

Using a statewide network of participating lenders, the Authority offers first-time homebuyer loans with competitive, fixed interest rates.  Currently the Authority offers $5,000 in down payment assistance.  After closing buyers may apply for up to an $8000 tax credit made available under the recently passed stimulus package. 

How it works
Down payment assistance is made available as a second mortgage loan.  The Authority offers two types of assistance, depending on your income, family composition and county.

Repayable Down Payment--The repayment begins after three years and is repayable over five years at a low, fixed interest rate.  No interest accrues during the first three years.

Forgivable Down Payment Assistance—As long as the property is owner-occupied, the assistance is forgiven at the rate of 20% per year over the term of five years. At the end of the fifth year this assistance is fully forgiven.

Tax Credit
The new tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.  Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 may qualify for the full tax credit.  The credit is refundable, meaning it may be claimed even though the taxpayer owes little or no federal income tax. 

These benefits are available to first time homebuyers. For tax credit purposes this means that you have not owned a home in the last three years.  For down payment assistance you may have not owned a home in the last three years in the following counties: Aiken, Anderson, Charleston, Greenwood, Greenville, Lancaster, Lexington, Oconee, Pickens, Richland, Spartanburg, and York.  For all other counties, this requirement is waived and the Authority requires only that you must not own a home at the time of closing.   

For more information, check the homebuyer requirements for each homeownership program on our website at www.schousing.com or call the Authority at (803) 896-9508.  Though the Authority’s down payment assistance is a regular, ongoing program, the tax credit is only available for homes purchased before December 1, 2009.