The idea of buying a home is exciting. However, coming up with a sizable down payment can remove some of the joy from the process.
According to the National Association of Realtors, the current median home price in the U.S. is approximately $422,400.
The traditional 10 or 20 percent down payment for even an average-priced home would require substantial savings. Fortunately, there are options available to help first-time home buyers obtain the goal of homeownership. For qualified borrowers, this includes loans with reduced or no down payment requirements, and down payment assistance loans that may be forgiven after a certain number of years.
Down Payment Resource’s Q4 2024 Homeownership Program Index (HPI) Report shows an increase in homebuyer assistance programs. Twenty-two new programs brings the total to 2,466 – the highest number of programs recorded by the report.
According to Down Payment Resource’s latest report, 74% of Homebuyer Assistance Programs nationwide offer downpayment and closing cost assistance with a variety of repayment criteria:
- 80% deferred payment
- 54% forgivable loans
- 52% forgivable loans with deferred payments
SouthState Buyer's Advantage Loan
One available SouthState mortgage offering is the Buyer’s Advantage program. Through this program, qualified borrowers can receive up to 100 percent financing based on the lesser of the purchase price or a bank-accepted appraisal. Additionally, no Private Mortgage Insurance (PMI) is required. If the borrower’s home is not located in a Low or Moderate income tract or tract that is greater than 50% minority, applicant income must be 80% or less of the Estimated MSA Median Family[RH1.1] Income level.
SouthState Opportunity Advantage Loan Fund
Developed to help homebuyers overcome financial barriers to homeownership, the Opportunity Advantage Loan is a forgivable second mortgage. Applicants are eligible for a 0-percent interest, zero-payment second mortgage of up to $5,000 to put toward a down payment, closing costs or other fees. The loan is forgivable with no repayment if the borrower remains in the home for five years.
The loan must be combined with a HomeReady® or Home Possible® mortgage. Borrowers must also meet income eligibility requirements.
Government-Backed Mortgage Loans
SouthState also gives it borrowers access to three government-funded programs that offer home buyers the option of a lower down payment:
Veteran Administration Loans
The VA offers loans to qualified active duty and veterans who meet specific military service requirements. These loans have limited closing costs, competitively low interest rates, and grant the ability to purchase a home with no money down.
Federal Housing Authority Loans
FHA loans can be ideal for certain qualifying homebuyers with a down payment as low as 3.5% of the purchase price.
US Department of Agriculture Loans
The USDA offers loans to qualified borrowers to purchase homes in designated rural areas with no down payment required.
