If you’ve dreamed of homeownership, the South Carolina State Housing Finance & Development Authority offers many ways to help get you into an Essex home. In partnership with Ameris Bank, buying a new home may be easier and more affordable than you ever thought possible.
- The SC Mortgage Tax Credit: Ameris Bank, through a partnership with the South Carolina State Housing Finance & Development Authority, offers a Mortgage Credit Certificate (MCC) program that provides a federal income tax credit of up to $2,000 per year to qualified home buyers. The MCC allows a home buyer to take a federal income tax credit for a portion of the annual interest they pay on their mortgage loan for their primary residence. The MCC allows eligible borrowers to take a dollar-for-dollar federal tax credit of 30 percent of the mortgage interest they pay annually. It can save a borrower up to $2,000 each year they occupy the home! The remaining 70 percent of the mortgage interest can still be deducted from their annual income on their tax return. An SC Mortgage Tax Credit is available to the home buyer for the life of the mortgage loan, as long as the home buyer lives in the home as their primary residence and as long as the MCC has not been revoked. Additional details on the SC Mortgage Tax Credit:
- Valid on the purchase of a primary residence in South Carolina.
- Must be a first-time home buyer, have not owned a home in the last three years, or buys a home in a “targeted” county.
- Household income and purchase price limits apply.
- A borrower can never deduct more than their actual tax liability after other deductions.
- The cost of the SC Mortgage Tax Credit is $500, in addition to a processing fee.
- Seller contributions are allowed.
- SC Mortgage Tax Credit may be used with Conventional, Fixed Rate, Adjustable Rate, FHA, VA and USDA loans. Some loan exclusions apply.
- 100 Percent USDA Financing in Rural Areas: This is a loan option offered through the United States Department of Agriculture Rural Development and would be an option for home buyers to consider if you expect to buy a home in any of the designated rural areas (qualifying Essex Homes communities are listed below) and have less cash available up-front for down payment and closing costs. This option features lending of up to 100 percent of the appraised value of the home; it requires a one-time Guarantee Fee that may be rolled into the loan and there are restrictions based on income and location. Essex Homes communities eligible for this financing include, in Lexington: Manors at White Knoll, Indian River, Foxchase, The Preserve at Rolling Creek and The Enclave at Silver Creek, and in Northeast Columbia: Kelsney Ridge, Wedgwood, Saddlebrook, Hunters Run and Abney Hills.
- Palmetto Heroes Program: Qualified home buyers can receive a 3 percent fixed rate mortgage and up to $8,000 in down payment assistance. Heroes include community service personnel in the fields of law enforcement, corrections, firefighting, emergency medical services, education, and health care as well as members of the SC Army National Guard, SC Air National Guard and veterans of the U.S. Armed Forces. Funding is limited, so if you’re a hero in our state considering buying a home, don’t wait.
- New Construction Down Payment Assistance: The South Carolina State Housing Finance & Development Authority has made available additional funds for down payment assistance to help home buyers purchase newly constructed homes. The initiative provides down payment assistance of $8,000 on newly constructed homes. The funds can be used for a down payment, closing costs or prepaid items. Through this initiative, buyers of a newly constructed home, a home that has never been occupied, can apply for an affordable first mortgage loan with down payment assistance of $8,000. This is significantly higher than the payment assistance currently available with SC Housing for buyers of existing homes. SC Housing offers fixed-rate financing with competitive interest rates on FHA and Rural Housing loa Borrowers must meet all SC Housing income limits, house price limits, home buyer requirements and credit standards.
For more details on any of these programs, contact one of the mortgage bankers with Ameris Bank Mortgage Services today. Meet them at Essex Homes.