The forgivable loan program offers up to $12,500 for downpayment and closing costs
SouthState Bank has unveiled a forgivable second lien option designed for low-to-moderate income (LMI) borrowers.
The new offering, Opportunity Advantage Loan Fund, provides up to $12,500 for a down payment, closing costs, or other fees. The second mortgage will be forgiven, with no repayment and 0% interest, as long as the borrower owns the home for at least five years.
According to its news release, the bank has allocated $10 million to create the fund. The offering must be combined with SouthState’s Buyer’s Advantage, Community Advantage, Home Ready, or Home Possible loan products.
“The current mortgage rate environment has made it more challenging for some people, particularly would-be first-time-homebuyers, to purchase a home,” said Stephen Cannon, mortgage co-president at SouthState Bank. “Homeownership is a foundational component to building wealth and ultimately creating a prosperous financial existence, and the Opportunity Advantage Loan Fund could make a significant impact for homebuyers throughout our six-state footprint.”
Read next: Non-QM lenders see optimism
To qualify, applicants must have an income of 80% or less of the county area median income adjusted for family size. A minimum 640 FICO credit score is also required. The Opportunity Advantage fund is available in Alabama, Florida, Georgia, the Carolinas, and Virginia (Richmond) for any applications received after May 15, 2023.
“We are committed to helping our communities succeed, and helping residents of our communities obtain affordable housing is a primary focus for SouthState,” co-president Brent Harrell said. “Our mortgage bankers are excited to help customers take advantage of this new loan program.”
Want to keep up with the latest mortgage news? Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.