City of Sumter Affordable Homebuyer Program

What is City of Sumter Affordable Homebuyer Program?

City of Sumter Affordable Homebuyer Program is a forgivable loan for homebuyers in Sumter, South Carolina, administered by City of Sumter Housing & Economic Development Corp. (Community Development Department).

• The City of Sumter, through its Community Development Department / Housing & Economic Development Corp., builds new stick-built homes within city limits and sells them to income-qualified lower-income buyers. Buyers receive a City grant up to $3,000 for closing costs plus a 0% deferred forgivable gap-financing loan up to $35,000, with the buyer obtaining a private first mortgage. Pre- and post-purchase counseling is required and a 1% buyer cash contribution may be required.
• City grant up to $3,000 for closing costs.
• 0% deferred forgivable gap loan up to $35,000.
• New-construction City-built homes.
• Pre- and post-purchase counseling provided.
• For lower-income households within Sumter city limits.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Federal HUD funds (CDBG/HOME) administered through the City of Sumter Community Development Department.

How much assistance does it provide?

City of Sumter Affordable Homebuyer Program offers between $3,000 and $38,000 in assistance.

• Award tiers: City Grant up to $3,000 for closing costs; plus a forgivable deferred 0% gap-financing loan up to $35,000.
• Buyer contribution: Minimum cash contribution of 1% of the selling price may be required from the buyer.
• Amounts are the program's published maximums, not an offer — City of Sumter Housing & Economic Development Corp. (Community Development Department) determines any individual award.

Do you have to pay it back?

City of Sumter Affordable Homebuyer Program is a forgivable loan, so the balance is forgiven once the program's conditions are met.

• Repayment is triggered by Gap-financing portion is a 0% deferred/forgivable loan tied to continued owner-occupancy as principal residence; the $3,000 closing-cost portion is a grant.
• The assistance is recorded in Second lien (deferred forgivable loan). position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Sumter Affordable Homebuyer Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

City of Sumter Affordable Homebuyer Program limits household income to $38,000.

• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Sumter Affordable Homebuyer Program caps the purchase price as follows: Not published; homes are City-built new construction sold at program-set prices within city limits.

• Eligible property types include Single Family.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

City of Sumter Affordable Homebuyer Program is a federal program, so it is not limited to South Carolina.

• The program targets specific areas: Eligible homes are limited to City-of-Sumter-built new-construction houses located within the Sumter city limits.

How do you apply?

Applications for City of Sumter Affordable Homebuyer Program go through City of Sumter Housing & Economic Development Corp. (Community Development Department), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Pre-purchase and post-purchase counseling provided by the City of Sumter..

2. 2

   Contact City of Sumter Housing & Economic Development Corp. (Community Development Department) to reserve funds

   Funds are reserved through First-come; applicant works with City of Sumter Community Development. Funds limited to City-built new-construction homes., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.