How Do South Carolina VA Home Loans Work?
VA home loans in South Carolina work the same as other VA loans across the country. When you take out a VA loan, you don’t have to provide a down payment and part of the loan will be guaranteed by the VA, which allows lenders to provide you with more favorable terms. However, in order to take out a VA loan, you’ll need to meet the qualifications set out by both the VA and the lender. There are several steps in this process:
- Obtain a Certificate of Eligibility (COE) from the VA.
- Submit your application to Griffin Funding. A loan officer will review your eligibility.
- You will be provided with a quote that you can lock in to avoid rate changes.
- You may be required to produce additional information or verify your information before it is submitted to underwriting.
- A pest inspection and VA appraisal need to be scheduled.
- Upon final approval, review the loan documents and finalize details for the closing.
Once you receive approval for your South Carolina VA home loan, you can move forward with purchasing the property.
What Is the VA Loan Limit in South Carolina?
While there used to be VA loan limits that South Carolina buyers had to abide by, eligible borrowers with full entitlement are no longer subject to loan limits. That makes it easier to purchase the home of your dreams because you can borrow as much as the lender approves.
There are some things to consider:
- If you have used part of your entitlement already, you will be subject to the 20220 loan limits put in place by the Federal Housing Finance Agency. To restore your full entitlement, you must sell the current property or repay the current loan in full.
- If you have previously defaulted on a VA loan, you will be held to the current VA loan cap in South Carolina.
Types of VA Home Loans in South Carolina
There are three types of South Carolina VA home loans:
- VA purchase loan: This loan can be used by current and previous service members to purchase, build, or remodel a home that will be their primary residence. No down payment is needed.
- VA streamline refinance loan (IRRRL): This loan is also called an interest rate reduction refinance loan. With this loan, you can refinance the home you currently live in with a new loan to help you qualify for better terms.
- VA cash-out refinance loan: This loan allows you to refinance your current mortgage but allows you to get cash for the equity in your home to pay off debt or other things.
Advantages of VA Home Loans in South Carolina
If you qualify for a VA home loan in South Carolina, you’ll have benefits you won’t be able to get with a conventional loan. These benefits include:
- No down payment. With a conventional loan, you will be required to put money down.
- No private mortgage insurance (PMI). PMI can increase the cost of your monthly mortgage.
- Flexibility in the qualification requirements. This is where a VA loan really shines. Perks like 0% funding fees for VA disabilities or service injuries, FICO scores lower than 620, and less time for seasoning on recent credit events can get you in your home faster than a qualifying process with a conventional loan.
- Competitive VA loan rates.
If you do not qualify for a South Carolina VA loan, Griffin Funding has other Non-QM loans that can help you access alternative financing for a home.
What Are the Requirements for a VA Loan in South Carolina?
To obtain a VA loan in South Carolina, you need to request your Certificate of Eligibility (COE). You can request the COE online through eBenefits. If you did not receive a dishonorable discharge and you are able to meet the minimum active-duty service requirement in accordance with your service, you may be able to obtain one.
For service members who do not meet the minimum service requirements, you can typically still obtain a COE if you were discharged for certain reasons, which include:
- The convenience of the government. In these cases, you must have served at least 20 months of a 2-year enlistment.
- Early out. In this instance, you must have served at least 21 months of a 2-year enlistment.
- Reduction in force.
- Certain medical conditions.
- A service-connected disability.
If you are looking to secure a South Carolina VA loan as a spouse, you may be eligible for a COE if you are a surviving spouse of a veteran or the spouse of a veteran who is missing in action or being held as a prisoner of war (POW).
There are additional requirements that may allow you to obtain a COE. You may also restore an entitlement you used in the past to purchase another home with a VA direct or VA-backed loan if:
- You sold the home you bought with the prior loan and have paid the loan in full.
- A qualified veteran-transferee agrees to assume your loan and substitute their entitlement for the same amount of entitlement originally used.
- You repaid the loan in full but have not sold the home you bought with the loan (this can only be done one time).
Are There Income Requirements for a South Carolina VA Loan?
There is no income threshold required for borrowers taking out a VA loan to purchase a home. This provides a great degree of flexibility for veterans who hope to take out a VA home loan in South Carolina, regardless of their income level or economic status.
Areas We Serve
At Griffin Funding, we serve all of South Carolina, making it easier for our customers to achieve homeownership. We can provide South Carolina VA home loans for areas across the state, including:
- Rock Hill
- And more
- Myrtle Beach
How to Apply for a VA Home Loan in South Carolina
Applying for a VA home loan in South Carolina is simple when you use Griffin Funding. All you have to do is fill out an application through our website to get the process started. Before filling out an application, make sure you have the proper documentation on hand. We will let you know when your South Carolina VA home loan application has been approved.
Apply for a VA Home Loan in South Carolina
If you’re ready to purchase a home with a VA home loan in South Carolina, contact the Griffin Funding team and apply now. We’re proud to work with the country’s veterans and provide consistently competitive rates and terms on VA home loans in South Carolina.