Maybe you’re buying your first home in South Carolina, or perhaps you’re relocating to South Carolina from another state. Either way, it’s important that you educate yourself on South Carolina home loans before shopping for a home and mortgage. This article explains what you’ll need to know before buying a home in South Carolina:
The median price of a home in South Carolina is $94,900. The price of homes in South Carolina varies widely between zip codes. For example, in Charlestown, South Carolina, the median price of a home in the summer of 2005 was $307,000; however, in both Columbia and Myrtle Beach, South Carolina, the median price of a home was $190,000. Average interest rates in South Carolina are above the national average.
Recently, homes in South Carolina have been appreciating at rates below the national average. However, in some parts of South Carolina, appreciation rates are at an all time high. As a result, income levels in many parts of South Carolina are too low to purchase a median-priced home with a conventional loan. In fact, homeowners in many South Carolina cities pay more than the recommended 30% of their incomes toward housing.
South Carolina state law prohibits prepayment penalties on home loans less than $100,000. It does not allow closed-end fixed-rate second balloon loans. South Carolina law requires private mortgage insurance on loans with loan-to-value ratios greater than 80%; however, private mortgage insurance may be cancelled once the loan reaches 80% loan-to-value ratio.
South Carolina’s Fair Housing Act prohibits mortgage lending discrimination against individuals based on their race, color, religion, gender, familial status, or national origin.
