We understand, at SC Real Estate Exchange, that the ability to finance a home is an important concern to our clients. That’s why we have provided several tools and pages of information to assistance in the mortgage process, and insure that you can get the money you need to buy a home, regardless of your financial situation.
Use the links on the menu to the left to gather information on the financing process. Feel free to contact us if you have any additional questions.
Mortgaging a home makes good financial sense. When you make a payment to a mortgage company, the amount is split into at least two categories, principal and interest. The principal you pay is simply paying back the exact about you borrowed, whereas the interest is the fee the company charges you for borrowing the money. So where does it go?
As principal is payed back, you now own a percentage of the value of the house. If the value of the house stays the same, you can some day sell the house and get this money back. Bottom line, paying principal is like paying yourself.
Interest becomes profit for the mortgage company, however the IRS allows you to ‘write off’ this interest on your taxes. A simple example: If you make $50,000 per year, and you pay $10,000 in mortgage interest that year, you are only taxed on $40,000. Of course there are many other factors and regulations involved, but overall, buying a house can increase your tax refund significantly.
Here are some programs and offers that can help you get the money to purchase a home:
- Palmettos Heroes Program – This program is a state program designed to help emergency workers, such as fire fighters, police officers, and EMTs, as well as teachers buy their first home. You could qualify for down payment assistance and a special lower interest rate.
- FHA Loans – The Federal Housing Administration can help get home loans for people. They do this by insuring the loan you get from your lender. This lets the lender offer better interest rates, lower down payments, lower closing costs, and easier credit approval because the bank has less risk.
- USDA Rural Development – The USDA has money set aside to assist in the development of Rural communities, business, and towns. They can offer special assistance to individuals interested in Rural developed neighborhoods.
- U.S. Department of Housing and Urban Development – Offers lending assistance to those who qualify.
- U.S. Department of Veteran Affairs – Offer lending services to Veterans.