Q:

How do you qualify for a home mortgage in South Carolina?

A:

Quick Answer

Eligibility for a home mortgage in South Carolina depends on the type of mortgage for which one wishes to apply. The best residential mortgages for individuals in South Carolina are financed by the Federal Housing Administration or the United States Department of Agriculture, indicates the South Carolina Federal Credit Union.

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Full Answer

The Federal Housing Administration mortgage, often referred to an FHA loan, requires interested parties to primarily reside in the financed home, according to Best Rate Home Loans. Primary residence means that the borrower lives in the home for a greater part of the year. FHA loans are therefore not available for investment properties or secondary homes.

In terms of credit scores, the Federal Housing Administration requires a minimum score of 620, as of 2015, which is significantly lower than that required by traditional lenders, notes Best Rate Home Loans. In the event that a credit score is not available, the FHA accepts recent utility bills and payment receipts for the same. Borrowers also need to provide evidence that they have been continuously employed for a minimum of two years, with a steady income.

United States Department of Agriculture home mortgages are only available for borrowers with a household income of less than 115 percent of the median family income in South Carolina, explains Trust Company Bank. Additionally, borrowers must have a credit rating of at least 580 and a regular source of income. USDA home mortgages are only available for South Carolina residents and can only be used to finance the acquisition of homes within the designated South Carolina area.

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