Opening doors to a home sweet home: SouthState’s innovative mortgage fund makes dreams a reality.
SouthState Bank, the bank subsidiary of SouthState Corporation (NASDAQ: SSB), has introduced the “Opportunity Advantage Loan Fund” as a new mortgage option. This fund aims to assist qualified low-to-moderate income (LMI) potential homebuyers in overcoming financial obstacles when purchasing their primary residence.
With a budget of US$10 million, SouthState will allocate the funds over a three-year period to establish the fund. LMI homebuyers residing in Alabama, Florida, Georgia, the Carolinas and Virginia (Richmond) can apply for the Opportunity Advantage Loan Fund starting May 15, 2023.
Mortgage co-president at SouthState Bank, Stephen Cannon, acknowledged the challenges encountered by potential first-time homebuyers as a result of the current mortgage rate environment. He highlighted the significance of homeownership in fostering wealth creation and financial stability. According to Cannon, the Opportunity Advantage Loan Fund has the potential to provide substantial assistance to homebuyers within SouthState Bank’s six-state footprint.
Key features of SouthState’s Opportunity Advantage Loan Fund
- Eligible buyers have the opportunity to receive a loan fund of up to US$12,500, which can be utilized for down payment, closing costs or other expenses associated with the purchase of a primary residence.
- The loan is fully forgivable, with no repayment obligation and zero interest, provided that the buyer maintains ownership of the home for a minimum of five years.
- In the event of selling the home before the completion of five years, specific repayment conditions are applicable.
- To avail of this opportunity, it is required to combine the loan with a Buyer’s Advantage, Community Advantage, Home Ready or Home Possible mortgage.
Eligibility criteria: Who qualifies?
Applicants for the Opportunity Advantage Loan Fund program must meet specific eligibility criteria. This includes having an income that is 80% or less of the county area median income adjusted for family size as determined by the United States Department of Housing and Urban Development (HUD). Qualified applicants must also meet the purchase mortgage requirements as per SouthState Bank or agency underwriting guidelines.
Additionally, a minimum Fair Isaac Corporation (FICO) credit score of 640 is required. It is important to note that the funds from this program can only be used for the purchase of a primary residence.
SouthState Bank’s launch of the Opportunity Advantage Loan Fund marks a significant step in supporting low-to-moderate income homebuyers in achieving their homeownership goals. With a fully forgivable loan and eligibility criteria aimed at facilitating access, this initiative aims to foster financial stability and wealth creation within the communities it serves.
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Press release link: https://www.prnewswire.com/news-releases/southstate-invests-10-million-in-forgivable-second-mortgage-fund-to-aide-homebuyers-301836259.html
