Start here: get lender pre-approval before you tour seriously, then use this page to understand which loan path fits and what your true monthly housing cost will be. I am a REALTOR®, not a lender. I help you choose the path, introduce experienced Charleston lenders, and keep the purchase on timeline.
Which loan fits you?
Skip the jargon first. Match your situation, then confirm details with a lender.
Solid credit, some cash
You can put a few percent down and want flexible terms with PMI you can cancel later.
→ Start with a conventional loan
Credit or cash is tighter
You need a lower entry point and can live with longer mortgage insurance.
→ Look at an FHA loan
Veteran or active duty
You want zero down, no monthly PMI, and competitive rates on a primary home.
→ Use a VA loan · VA buyer guide
Income-eligible, mapped area
The address sits in a USDA-eligible zone and household income fits the limits.
→ Check a USDA loan early with your lender
You found a low existing rate on a listing
Some VA and FHA loans can be assumed. You take over the seller’s rate and remaining term, then cover their equity with cash or a second loan. Approval is still required.
→ Explore assumable loans · Charleston Assumable List
Compare loan types
Numbers below are typical guides, not quotes. Your lender sets the real terms.
| Loan | Down payment | Mortgage insurance | Watch for KEY |
|---|---|---|---|
| Conventional | About 3%–20%+ | PMI if under ~20%; often cancelable | Stronger credit usually helps rate and approval |
| FHA | As little as 3.5% | Upfront + monthly; often lasts longer | Property condition standards apply |
| VA | Often 0% | No monthly PMI; funding fee may apply | Primary residence; entitlement & COE needed |
| USDA | Often 0% | Guarantee fee structure applies | Address map + income limits must both fit |
| Assumable | Equity gap (cash or 2nd loan) | Follows the existing loan rules | Lender/VA approval; timeline can be longer |
Conventional loans
Follow Fannie Mae / Freddie Mac guidelines. Popular when credit is solid because private mortgage insurance can usually be removed around 20% equity. Down payments commonly land between 3% and 20%+.
Best when you want long-term flexibility and a path to drop PMI.
FHA loans
Insured by the Federal Housing Administration. Helps buyers with thinner credit or less cash to close. Expect an upfront mortgage insurance premium plus ongoing monthly MI that typically lasts longer than conventional PMI.
Best when access matters more than canceling MI quickly.
VA loans
For eligible veterans, active-duty members, and some surviving spouses. Often zero down, no monthly PMI, and competitive rates. A one-time funding fee is common (sometimes financed; disabled veterans may be exempt).
I work with VA buyers constantly. Read the VA home buyers guide.
USDA loans
Zero-down option for income-eligible buyers in USDA-mapped areas. Parts of the greater Charleston metro can qualify even when they feel suburban. Have your lender check the address map and income limits before you fall in love with a house.
Assumable VA / FHA loans
You take over a seller’s existing rate and remaining term when the loan allows it. Powerful when today’s rates are higher than the loan on the home. You still need approval, and you usually need cash or a second loan for the seller’s equity.
Browse current assumable listings and compare assumable vs new VA.
Lesser-known options people miss
Most buyers only hear about conventional, FHA, VA, and USDA. These next options are less advertised, but they solve real Charleston situations, renovations, self-employment, jumbo prices, new builds, and creative deals.
Renovation loans
FHA 203(k) and Fannie Mae Homestyle let you finance the purchase and repairs in one loan. Useful for a solid house that needs work, not only turnkey listings.
→ Ask if the rehab scope fits a reno product
Construction-to-permanent
One loan that covers the build, then converts to a regular mortgage when the home is finished. Avoids two closings when you are building or buying a to-be-built package.
→ Common with custom builds and some new construction
Jumbo loans
For purchase prices above conforming loan limits. Charleston waterfront and luxury homes often need jumbo. Down payment, reserves, and credit standards are usually stricter.
→ Plan reserves early on higher-priced homes
Bank-statement / Non-QM
For self-employed buyers whose tax returns understate cash flow. Some lenders qualify on 12–24 months of bank deposits instead of W-2 income. Rates and fees are often higher than QM loans.
→ Bring clean statements, not just tax returns
Physician / professional loans
Portfolio products for doctors, dentists, and some other licensed professionals. Can allow lower down payments and skip PMI even when a conventional loan would require it.
→ Ask lenders who keep these on their books
Piggyback (80-10-10)
A first mortgage plus a smaller second loan (or HELOC) so you can avoid PMI without bringing a full 20% to closing. Math only works when the blended payment still fits.
→ Compare PMI cost vs second-loan interest
Seller financing / owner carry
The seller acts as the lender for all or part of the purchase. Rare in Charleston, but possible with motivated owners, inherited property, or unique land deals. Needs a strong contract and attorney review.
→ Structure carefully; not a DIY handshake
Down payment assistance
SC Housing and local programs can layer grants or second mortgages onto FHA, conventional, VA, or USDA. Income and purchase-price caps apply.
→ See Charleston DPA guide
DSCR / investor loans
Qualify from the property’s rent coverage (debt-service coverage) instead of personal W-2 income. Built for rentals, not your primary home.
→ For investment buyers · Investor path
Land & manufactured housing
Vacant lots and some manufactured homes use different products than a standard stick-built house. Appraisal, foundation, and lender overlays matter more than most buyers expect.
→ Start with the property type, then the loan
Worth asking your lender outright: “Besides conventional / FHA / VA / USDA, what else could work for my income, credit, and the kind of home I want?” Many of these options are available, but only if someone knows to ask.
How you apply
You apply with a lender. Your agent keeps the purchase contract and underwriting timeline in sync.
Pre-approval
Share income, assets, debts, and ID. Lender pulls credit and issues a letter for what you can likely borrow.
Under contract
Complete the full loan application. Appraisal is ordered. Underwriting reviews the file and lists conditions.
Clear to close
Clear conditions, review the Closing Disclosure (at least 3 business days before), sign with an SC real estate attorney.
Two documents to read closely: the Loan Estimate (within 3 business days of application) and the Closing Disclosure (at least 3 business days before closing). Closing costs in Charleston often run about 2%–4% of price on top of your down payment. See closing costs explained.
How the loan is paid each month
After closing, most buyers make one automatic payment. That payment is usually PITI, not just the mortgage rate you saw online.
Principal
Pays down what you owe. Builds equity over time.
Interest
Cost of borrowing. Larger share early in the loan.
Taxes
Property taxes, often collected into escrow monthly.
Insurance
Homeowners; flood is common in the Lowcountry.
Example: what “the payment” really includes
Illustrative only for a ~$400,000 purchase. Your numbers will differ by rate, taxes, insurance, and loan type.
HOA / condo dues are usually separate. Flood insurance may add more. Always budget the full housing payment, not principal and interest alone. Charleston also has a property tax jump many buyers miss when they look at the seller’s current bill.
Early years: more of each payment goes to interest. Later years: more goes to principal. That is amortization. Extra principal payments (when allowed) shorten the loan and cut total interest; tell the servicer to apply extras to principal.
What not to do while the loan is in process
- Do not open new credit cards, finance a car, or co-sign for anyone
- Do not change jobs or move large undocumented deposits
- Do not spend your down-payment or reserve funds
- Do tell your lender and me immediately about any income or credit change
Lenders re-check credit and funds before closing. Surprises here can delay or kill a loan that was already approved.
Buyer checklist
- Talk to a lender early and get a written pre-approval
- Ask which loan types you qualify for, including lesser-known options, and the full monthly PITI estimate
- If military-eligible, pull your Certificate of Eligibility
- If cash is tight, ask about down payment assistance and seller credits
- Before offering, confirm flood / insurance / HOA so the payment is real
- After contract: answer underwriting requests fast; keep finances still
Common questions
Which loan is best in Charleston?
There is no single best loan. Conventional fits stronger credit and cancelable PMI. FHA helps with access. VA is often strongest for eligible veterans. USDA can be excellent when the map and income fit. Assumable loans win when the existing rate is meaningfully below today’s market. Also ask about renovation, jumbo, bank-statement, physician, piggyback, and assistance programs when the standard four do not fit.
What loan types do buyers often miss?
Renovation loans (FHA 203(k) / Homestyle), construction-to-permanent, jumbo, bank-statement or Non-QM for self-employed buyers, physician/professional loans, piggyback seconds to avoid PMI, seller financing, down payment assistance, and DSCR loans for investors. Availability depends on the lender and your file.
What is included in my monthly payment?
Usually principal, interest, taxes, and insurance (PITI). Add mortgage insurance when required. Flood insurance is common here. HOA dues are typically paid separately to the association.
Can I use seller concessions for closing costs?
Often yes, within loan-program limits and market conditions. We decide when asking for credits helps versus when it weakens the offer. Details belong in the offer strategy, not as an afterthought.
Are you my lender?
No. I represent you on the real estate side, introduce lenders who know Charleston (and VA/FHA quirks), and keep underwriting aligned with the contract. Rates, fees, and approval come from your lender.
Call or text 480-888-6895 when you want a straight conversation about what fits your numbers. This page is general education only, not lending, tax, or legal advice. Verify terms with a licensed mortgage professional.