Low Down Payment Options to Build Your Own South Carolina Home

February 11, 2023

According to recent reports from Zillow®, the housing market in South Carolina has experienced notable growth, characterized by a 12.80% increase in median home values in the period ending January 2023. The current median home value in the state stands at around $269,424, representing a 12.80% growth from the previous year.

This article examines the benefits of building a new home in the South, including access to One-Time Close New Construction products that require minimal or no down payments, and the opportunity for personalization.

Low down payment construction loans are an excellent choice for both first-time and repeat homebuyers who want to build their dream home affordably. These loans, available through the 3.5% down FHA insurable loan program or the $0 down VA insurable loan program, allow homebuyers to combine the purchase of land and construction expenses into a single loan.

One of the significant advantages of this type of loan is that borrowers do not need to make payments during the construction phase, and there is no need to re-qualify once the home is complete. Moreover, borrowers with middle credit scores as low as 620 can be eligible for the loan. In today's fiercely competitive housing market, where home prices are skyrocketing, building a new home may be the best alternative to finding the perfect home. Once the loan is complete, borrowers can choose to modify it to secure a lower interest rate if the market changes or stay locked in, regardless of how the market moves.

The FHA One-Time Close construction to permanent loan is a popular financing option for individuals seeking to build a new home. This loan allows eligible borrowers to combine the costs of purchasing land and constructing a new home, with a low-down payment of 3.5%. The FHA loan can be used for a variety of home types, including Stick-Builds, modular, and manufactured homes, and is available throughout the country.

For veterans who meet the eligibility criteria, the VA One-Time Close construction to permanent loan program is an excellent option to consider. With this VA loan program, eligible borrowers can purchase land and finance construction expenses for a new home with no down payment required. The VA loan program covers the same loan types as the FHA construction loan options mentioned earlier and is available nationwide.

In summary, low down payment construction loans are a practical option for those who want to build a new home with manageable costs. These loans offer benefits such as no payments during construction, no need to re-qualify after completion, and eligibility for borrowers with lower minimum credit scores of 620 . Building a new home may be an ideal solution in today's competitive housing market, and borrowers can modify the loan down the line to secure a lower interest rate or stay locked in, depending on the market trends.

If you're planning to build a new home in South Carolina, exploring FHA/VA One-Time Close construction loans as a financing option may be a wise decision.


 FHA, VA, and USDA: One-Time Close Loans


Want More Information About One-Time Close Loans?

We have done extensive research on the FHA (Federal Housing Administration) and the VA (Department of Veterans Affairs) One-Time Close Construction loan programs. We have spoken directly to licensed lenders that originate these residential loan types in most states and each company has supplied us the guidelines for their products. We can connect you with mortgage loan officers who work for lenders that know the product well and have consistently provided quality service. If you are interested in being contacted by a licensed lender in your area, please send responses to the questions below. All information is treated confidentially.

FHA.com provides information and connects consumers to qualified One-Time Close lenders to raise awareness about this loan product and to help consumers receive higher quality service. We are not paid for endorsing or recommending the lenders or loan originators and do not otherwise benefit from doing so. Consumers should shop for mortgage services and compare their options before agreeing to proceed.

Please note that investor guidelines for the FHA and VA One-Time Close Construction Program only allows for single family dwellings (1 unit) – and NOT for multi-family units (no duplexes, triplexes or fourplexes). In addition, the following homes/building styles are not allowed under these programs, including but not limited to: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes, Dome Homes, Bermed Earth Sheltered Homes, Tiny Homes, Accessory Dwelling Units, or A-Framed Homes.

Contact Us: Send Us Your Request – Spam Safe

Please send your email request to [email protected] which authorizes FHA.com to share your personal information with one mortgage lender licensed in your area to contact you.

1. Send your first and last name, e-mail address, and contact telephone number.

2. Tell us the city and state of the proposed property.

3. Tell us your and/or the Co-borrower’s credit profile: Excellent – (680+), Good - (640-679), Fair – (620-639) or Poor- (Below 620). 620 is the minimum qualifying credit score for this product.

4. Are you or your spouse (Co-borrower) eligible veterans? If either of you are eligible veterans, down payments as low as $0 may be available up to the maximum amount your debt-to-income ratio per VA will allow – there are no maximum loan amounts as per VA guidelines. Most lenders will go up to $1,000,000 and review higher loan amounts on a case-by-case basis. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.