Home buyers have a variety of available loan options when considering a home purchase. Most home buyers will find one of these choices in particular, to be the best for them. We recommend speaking with one or more local lenders to determine your best options, their fees and terms. Local lenders are generally a good choice because these lenders are familiar with local insurance requirements, property types and locations, flood restrictions and more. We can provide a list of good mortgage loan companies in the Myrtle Beach area.

Always start your home search by consulting with an experienced lender and secure a loan pre-approval letter prior to looking at properties. This will give the buyer a good idea of the price range of homes available to him/her. Furthermore, sellers see pre-approval as a comforting necessity to show that a buyer is serious, is already working with a lender and is generally capable of buying their home. Most lenders can provide this within 24 hours. 

Here is a breakdown of the various loan types. Please consult your lender for details about each:

Conventional Loan

These loans are for well qualified buyers with savings and the ability to provide a sizable down-payment on the home. The down payment requirements are generally in the 5% - 20% range. Mortgage insurance will be require if less than 20%, ie 80% loan to value. Conventional loans make up the bulk of loans in the marketplace.

 

VA Loan

These loans are guaranteed by the US Government and are provided to US veterans, active military, their families and others. These loans require no down payment,  100% financing. No mortgage insurance is required.

Applicants must have approved credit, sufficient income, and a valid Certificate of Eligibility (COE) to be eligible for a VA home loan. The home must be for personal occupancy. VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide the applicant with more favorable terms. See http://www.benefits.va.gov/homeloans/resources_veteran.asp for details

USDA Loan

These are unique loans offered to individuals purchasing in certain rural areas. They can be 100% financing. There are many requirements for eligibility and certain restrictions. See  http://www.rd.usda.gov/ for details.

FHA Loan

These popular loans require a 3.5% down payment required and are insured by the US government. Mortgage insurance runs the term of the loan. Since the government is insuring these loans, they are particular about both the applicant and the property being purchased. 

In Horry County, SC, the loans are available for a single-family home purchase of a $294,515 and in Georgetown County to a maximum purchase of $327,750. Please consult your lender for all details.  

Expect your FHA Loan Closing Costs to include lender's origination fee, deposit verification fees, attorney's fees,  appraisal fee and inspection fees, title insurance fee, document prep, survey, credit reports, stamps, recording fees,  taxes, certification fees, and home inspection fees. See http://www.fha.com/fha_loan_requirements for more details.

                                 

Owner Financing

Another potential source of funds is owner financing. The property owner, if willing, will generally ask for a substantial down payment and a relatively short payback period, typically 10 years at a competitive interest rate generally higher than current market rates. 

We recommend that buyers consult with their financial or tax consultants to accurately determine their best choice for  financing. 

 

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Jan and Dan Sitter   Coastal Beach Homes LLC   843-282-8628