What types of mortgages are available?

In South Carolina, several types of mortgages are available for real estate purchases. The most common type of mortgage is a conventional mortgage, which involves borrowing money from a bank or other financial institution to purchase a home. Conventional mortgages typically have fixed interest rates and require a down payment of at least 5%. The borrower is required to pay monthly installments to the lender which can be paid off over the life of the loan. Another mortgage option available in South Carolina is an adjustable-rate mortgage (ARM). This type of loan has a variable interest rate that fluctuates with the market. An ARM usually offers a lower initial interest rate, which can result in lower monthly payments but also means that the loan’s interest rate can increase over time. The third type of mortgage is a Federal Housing Administration Loan (FHA), which is insured by the Federal Government. FHA loans are designed to help those with lower incomes and credit scores who may not qualify for conventional loans. FHA loans also require a lower down payment of 3.5%, but the borrower must pay an upfront mortgage insurance premium as well as an annual premium. Finally, in South Carolina, veterans may also be eligible for a Veterans Affairs (VA) loan, which is offered through the VA to help those who have served in the armed forces. VA loans have flexible requirements, and there is no down payment required. In summary, when it comes to mortgages in South Carolina, there are several options available. Conventional, adjustable-rate, FHA and VA loans are the most common types of loans for those interested in purchasing a home in the state.

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