Low–to–moderate–income South Carolinians may get a big boost toward achieving homeownership from the South Carolina State Housing Finance and Development Authority and the American Recovery and Reinvestment Act.

Using a statewide network of participating lenders, SC State Housing offers first–time home buyer loans with competitive, fixed interest rates. Currently SC State Housing offers $5,000 in down payment assistance. After closing buyers may apply for up to an $8,000 tax credit made available under the recently extended stimulus package.

How it works Down payment assistance is made available as a second mortgage loan. SC State Housing offers two types of assistance, depending on your income, family composition and county.

• Repayable Down Payment – The repayment begins after three years and is repayable over five years at a low, fixed interest rate. No interest accrues until repayment begins.

• Forgivable Down Payment Assistance – As long as the property is owner–occupied, the assistance is forgiven at the rate of 20% per year over the term of five years. At the end of the fifth year this assistance is fully forgiven.

Tax Credit

The Treasury Department’s recently extended tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 may qualify for the full tax credit. The credit is a refund, meaning it may be claimed even though the taxpayer owes little or no federal income tax.

These benefits are available to first time home buyers. For tax credit purposes this means that you have not owned a home in the last three years. For down payment assistance you may have owned a home in the last three years in the following counties: Aiken, Anderson, Charleston, Greenwood, Greenville, Lancaster, Lexington, Oconee, Pickens, Richland, Spartanburg, and York. For all other counties, this requirement is waived and SC State Housing requires only that you do not own a home at the time of closing.

www.schousing.com or call (803) 896-9508.