South Carolina VA Loan Limits

VA Loans in South Carolina

Did you know you may be eligible for a zero-down loan without any maximum limit if you are a veteran or military service member in South Carolina? In 2020, the VA eliminated all limits for VA loans in South Carolina VA loans for most borrowers. This means that first-time VA homebuyers and those with full entitlements can borrow as much money as the lenders will allow. The amount of your South Carolina VA home loan will now depend more on your financial status than the local housing market. VA loan limits are also still available for homebuyers with VA loans or partial entitlement. You may qualify if you are one of the 365,139 veterans living in South Carolina, active-duty servicemember or eligible surviving spouse of a military member.

There’s no South Carolina VA loan limits in 2022 for those with full entitlement

The Department of Veterans Affairs eliminated SC VA home loan limits for fully-qualified borrowers in 2020. That means you can borrow more because you don’t have to worry about finding a house within your local limits. As such, VA home loans now have increased appeal since removing the loan limit requirement. This is especially true when compared to other government mortgage loans. FHA loans, also government-backed, have loan limitations that are based on local housing prices. In most areas across the country, the FHA limit for 2022 is $420,680. Loan limits also apply to conforming conventional mortgages, which are insured by Fannie Mae or Freddie Mac rather than a government agency. All that being said, it’s important to remember that just because qualified applicants don’t have to meet any VA loan limit in South Carolina doesn’t mean that you can purchase a home at any price.

Lenders now decide how much loan you can afford

Your ability to repay the loan now depends on on the private mortgage lender that issues your VA-backed loan. Along with some general VA loan requirements, the lender will consider several factors.

  • Applicant Credit Score: VA borrowers usually need to have a credit score of 620 or better, although some lenders are rumored to lend down to a 580 from time to time. Additionally, South Carolina VA loan rates often depend on an applicant’s credit score.
  • Income: Lenders will verify your income for the past 2 years to ensure you are earning enough to pay your monthly mortgage payment. VA loans employ two methods of evaluating applicant income to determine how much mortgage they can afford, known as the Debt-to-Income Ratio and the Residual Income method. Of course, you should be asking yourself how much mortgage can I afford before applying for any home loan.
  • Applicant Debt-To Income Ratio (DTI): Your debt-to-income ratio compares your monthly debt payments to your monthly income. VA even allows the lender to approve them at a higher DTI if they have other compensating factors. While there’s no limit on VA loan programs for 2022, its ultimately up to your lender and your personal circumstances to determine how much you can borrow.

You can search for an approved VA lender in South Carolina, including in the following cities and towns here:

Aiken, Anderson, Batesburg-Leesville, Beaufort, Belvedere, Bennettsville, Berea, Bluffton, Boiling Springs, Burton, Camden, Cayce, Centerville, Central, Charleston, Cheraw, Chester, Clemson, Clinton, Clover, Columbia, Conway, Darlington, Dentsville, Dillon, Easley, Five Forks, Florence, Forest Acres, Forestbrook, Fort Mill, Fountain Inn, Gaffney, Gantt, Garden City, Georgetown, Goose Creek, Greenville, Greenwood, Greer, Hanahan, Hardeeville, Hartsville, Hilton Head Island, Hollywood, Homeland Park, Irmo, James Island, Ladson, Lake City, Lake Murray of Richland, Lake Wylie, Lancaster, Laurel Bay, Laurens, Lexington, Little River, Lugoff, Marion, Mauldin, Moncks Corner, Mount Pleasant, Murrells Inlet, Myrtle Beach, Newberry, North Augusta, North Charleston, North Myrtle Beach, Oak Grove, Orangeburg, Parker, Piedmont, Port Royal, Powdersville, Red Bank, Red Hill, Rock Hill, Sangaree, Sans Souci, Seneca, Seven Oaks, Simpsonville, Socastee, Spartanburg, St. Andrews, Summerville, Sumter, Taylors, Tega Cay, Travelers Rest, Union, Valley Falls, Wade Hampton, Walterboro, Welcome, West Columbia, Woodfield, York

How do I determine my entitlement level?

The VA Certificate of Eligibility, or COE, is what informs lenders of an applicant’s eligibility for a VA loan. It also indicates your level of entitlement. The COE helps the VA and your lender to communicate. Your COE may not make much sense at first glance. As an example, if a COE reflects a basic entitlement of $36,000, that number shows how much loan insurance the VA offers through the VA guarantee, rather than your potential borrowing potential. This VA insurance reduces the risk for the lender and eliminates the need to make a down payment or monthly mortgage insurance payments. The VA covers 25% of the amount you borrow on your home loan, regardless of how much it is approved by the lender. You may also want to refer to a VA loan calculator to help figure out your entitlement and potential borrowing power.

What does full entitlement refer to?

The maximum VA home loan benefits you’re eligible for is known as full entitlement. If you’re a first-time home buyer or it’s you’re first time using a VA loan, you’re likely to have a full entitlement. If you’ve used your VA benefits before, you may still be eligible for a full entitlement if the loan is fully repaid and your benefit is restored. Otherwise, you may be a borrowers that’s eligible for partial entitlement. That may be the case for someone who used an South Carolina VA loan to purchase a home a few years back and is still paying that loan off. With a partial entitlement, an applicant may still be eligible for a VA loan but the mortgage must not exceed their local max loan amount for VA financing. There are other caveats that may apply related to your VA home loan entitlement eligibility. As an example, current VA loan holders or former borrowers who have been foreclosed will not be eligible for their full entitlement. You won’t get your full entitlement if you’ve short-sold a VA-backed loan which the VA had to reimburse. In fact, if you’ve had a foreclosure or short-sale in your past, you might not be eligible to receive another VA loan at all.

What is the maximum amount I can borrow if I have partial eligibility?

Since 2020, specific SC VA loan limits only apply to partial entitlement. Those mortgage limits are identical to the conventional conforming loan limit for a particular area. Conventional loan limits are set by the Federal Housing Finance Agency (FHFA) each year. The loan limits will depend on where you live and the property you purchase. They are determined based on local home prices. This FHFA map will show you the loan limits for your county. It’s not difficult to determine your county’s loan limit. However, it can be complicated to calculate how this limit will affect your home loan. To determine if you will need a downpayment on the VA loan, lenders use a complex equation. You can read our guide on buying an additional house with a VA loan. Talk to a VA lender if you only want to find out how much house you could afford using a VA loan. In just a few minutes, they can calculate your home’s potential price and look up your COE.

South Carolina VA Home Loan Limits 2022 Map (for partial eligibility applicants)

South Carolina VA County Loan Limits 2022 (for partial eligibility applicants)

County Name
Limit
ABBEVILLE$424,100
AIKEN$424,100
ALLENDALE$424,100
ANDERSON$424,100
BAMBERG$424,100
BARNWELL$424,100
BEAUFORT$424,100
BERKELEY$424,100
CALHOUN$424,100
CHARLESTON$424,100
CHEROKEE$424,100
CHESTER$424,100
CHESTERFIELD$424,100
CLARENDON$424,100
COLLETON$424,100
DARLINGTON$424,100
DILLON$424,100
DORCHESTER$424,100
EDGEFIELD$424,100
FAIRFIELD$424,100
FLORENCE$424,100
GEORGETOWN$424,100
GREENVILLE$424,100
GREENWOOD$424,100
HAMPTON$424,100
HORRY$424,100
JASPER$424,100
KERSHAW$424,100
LANCASTER$424,100
LAURENS$424,100
LEE$424,100
LEXINGTON$424,100
MARION$424,100
MARLBORO$424,100
MCCORMICK$424,100
NEWBERRY$424,100
OCONEE$424,100
ORANGEBURG$424,100
PICKENS$424,100
RICHLAND$424,100
SALUDA$424,100
SPARTANBURG$424,100
SUMTER$424,100
UNION$424,100
WILLIAMSBURG$424,100
YORK$424,100

VA Loan FAQs

Can closing costs be included in a VA Loan?

If you don’t have enough funds to cover closing costs on your new home, you can include certain costs in your VA loan. You also have the option to roll your funding fee into your total mortgage amount. As for the fees that can’t be rolled into your mortgage per VA loan qualifications, you may still be eligible for seller or lender concessions that will lower the upfront cash cost.

What are the closing costs for a VA loan?

Borrowers generally pay different closing costs depending on where they live and the particulars of their transaction you have. Closing costs are often within the range of 3% and 5% of the total mortgage amount.

Who pays the closing costs of a VA loan?

The closing costs of a VA loan are generally split between the seller and buyer, however the seller costs must not exceed 4% of the total loan amount. The seller’s share usually includes the commission for real estate agents.

You, as the buyer, are responsible for the VA funding fee, origination fee and discount points, VA appraisal fee, title fees, and other costs, some of which can be financed. Fortunately, VA home loan requirements establish limitations on costs for home buyers, and also help you keep costs down by limiting the origination fee.

FHA Loan Limits

FHA Loan Limits

The Federal Housing Administration (FHA) makes it possible for Americans with lower incomes and imperfect credit ratings to purchase a home. FHA loan limits were recently increased so that larger loans can now be obtained. Read More

Mortgage Debt-to-Income Ratio – Conventional, FHA, VA, USDA Loan DTI

DTI Ratio

The Debt-to-Income Ratio, also known as “DTI Ratio”, are simply a couple of percentage representing applicant debt compared to their total income. Lenders use mortgage debt-to-income ratio percentages to evaluate a borrowers ability to repay them as agreed. Maximum debt-to-income ratios may vary based upon the mortgage program and the lender. Read More

Mortgage LTV Ratio: Loan-to-Value

LTV Ratio

The Loan-to-Value Ratio (LTV) is a percentage used to describe a loan amount compared to a property valuation. Lenders often use LTV Ratios to determine evaluate mortgage risk, determine applicant approval, and if they’ll be required to carry mortgage insurance. In general, higher LTV ratios represent increased risk to the lender. Therefore, high LTV mortgage loans are usually required to carry mortgage insurance. The LTV ratio is contingent on a property’s appraised value, as determined by the lender and mortgage program.

How is Mortgage LTV Calculated?

Loan-to-Value is calculated several ways, depending on the purpose of the mortgage. For a home purchase loan, the LTV is calculated based upon the sales price. For a refinance, the LTV is calculated based upon the appraised value of the home. The LTV ratio for either method is determined by dividing the loan amount by either the purchase price or total appraised value of the subject property.

Loan-to-Value Calculation

Example: Let’s assume you want to purchase a home that has an appraised value of $100,000. If you have $20,000 available for a down payment, then you’ll need to borrow another $80,000, or 80% of the purchase price.  Therefore, your ‘Loan-to-Value’ is 80%.

Conventional LTV Ratio Limits: Home Purchase

Loan to ValueMaximum Conventional LTV Ratios vary based upon several factors including mortgage type, loan purpose and the number of units in a property. Loan-to-value determines mortgage approval decisions within conventional loan requirements, and also if a borrower is required to carry Private Mortgage Insurance (PMI).

Conventional loans had maximum LTV limits of 80% historically, but that’s all changed.  These days, applicants can get conventional loans with LTV ratios of up to 97%.

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary97% LTV90% LTV
2 Units Primary85% LTV75% LTV
3 Units Primary75% LTV65% LTV
4 Units Primary75% LTV65% LTV
1 Unit Second Home90% LTV80% LTV
1 Unit Investment85% LTV75% LTV
2 Units Investment75% LTV65% LTV
3 Units Investment75% LTV65% LTV
4 Units Investment75% LTV65% LTV

Conventional LTV Limits: Rate-Term Refinance

Rate-Term Refinance is considered any refinance where the borrower doesn’t get cash back.  These no-cash-out refinance options are used to lower a homeowner’s payments and interest rate. Rate-term refinance loans usually allow higher loan-to-values than for borrowers trying to take cash out.

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary97% LTV90% LTV
2 Units Primary85% LTV75% LTV
3 Units Primary75% LTV65% LTV
4 Units Primary75% LTV65% LTV
1 Unit Second Home90% LTV80% LTV
1 Unit Investment75% LTV65% LTV
2 Units Investment75% LTV65% LTV
3 Units Investment75% LTV65% LTV
4 Units Investment75% LTV65% LTV

Conventional LTV Limits: Cash-Out Refinance

Cash-Out Refinance loans are used when a borrower has equity in a property they want to turn into liquid cash.  Because these loans often increase lender risk, they generally employ stricter LTV ratio requirements than no-cash-out refinance loans.

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary80% LTV75% LTV
2 Units Primary75% LTV65% LTV
3 Units Primary75% LTV65% LTV
4 Units Primary75% LTV65% LTV
1 Unit Second Home75% LTV65% LTV
1 Unit Investment75% LTV65% LTV
2 Units Investment70% LTV60% LTV
3 Units Investment70% LTV60% LTV
4 Units Investment70% LTV60% LTV

FHA LTV Limits: Purchase or Refinance

FHA loans allow higher LTV ratios than most mortgage programs. Therefore, they’re considered a low down payment mortgage.  Loan-to-value ratios also affect how FHA loans are priced to the consumer, and if they’re required to carry FHA mortgage insurance.

Credit ScorePurchase Mortgage Refinance Mortgage
580+ FICO Score96.5% LTV85% LTV
Below 580 FICO Score90% LTV85% LTV

VA LTV Limits: Purchase or Refinance

While there’s no set maximum LTV for VA loans, it’s generally 100 percent.  VA loan-to-value may exceed 100 percent if the veteran chooses to finance the funding fee, discount points or energy efficient improvements.

 Purchase Mortgage Refinance Mortgage
All Credit Scores100% LTV + Points, Fees100% LTV + Points, Fees

USDA LTV Limits: Purchase or Streamline Refinance

USDA loans are a zero down payment mortgage program, which means they’re offered with LTV’s of 100%.  Technically, USDA loans are offered with a maximum loan-to-value of 102% because of the 2% “Guarantee Fee” may be rolled into the mortgage amount and paid over the duration of the loan.

 Purchase Mortgage Streamline Refinance
All Credit Scores102% LTV102% LTV

FHA Loans

FHA Loans

What is an FHA Loan?

An FHA loan is a mortgage program thats’s perfect for today’s first-time home buyers.  During the last decade, tightened housing regulations and poor wage growth have left many people feeling like owning a home is beyond their reach. More than ten million Americans can still hold on to their homeownership dreams thanks to flexible FHA loan requirements, which have helped over 40 million people achieve homeownership since 1934. Read More

FHA Loan Requirements

FHa Loan Requirements

FHA loans are a terrific option for home buyers with lower incomes, imperfect credit ratings or limited cash available for a down payment. In fact, FHA loan requirements feature a certain flexibility which makes them the only option available for millions of American mortgage applicants with “average” qualifications. That’s why FHA loans jumped in popularity after the 2008 financial crisis when subprime mortgage options were eliminated. Read More

FHA Mortgage Insurance

FHA Mortgage Insurance

Mortgage insurance (MI) is a protection that guards lenders in case of applicant default. Not all home loans require mortgage insurance though. As a rule of thumb, it’s usually required for mortgages with a down payment of 20 percent or less. FHA MI is required for all FHA loan programs including purchase loans, refinance loans and streamline refinance loans. FHA sets the guidelines for it’s insurance programs, and that’s what lenders use to determine if applicants are eligible for a loan. These requirements are usually less demanding than other, non-insured mortgage programs. Read More

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