LOAN COMPARISON
FHA vs Conventional Loan Summerville SC
Choosing between an FHA and conventional loan? Here is a straightforward comparison to help Summerville buyers make the right decision.
Side-by-Side Comparison
| Feature | FHA Loan | Conventional Loan |
|---|---|---|
| Minimum Down Payment | 3.5% | 3% – 5% (typical) |
| Credit Score | 580+ (3.5% down) | 620+ (most lenders) |
| Mortgage Insurance | Upfront + monthly MIP (life of loan if <10% down) | PMI removed at 80% LTV |
| Interest Rates | Often slightly lower | Varies by credit score |
| Gift Funds for Down Payment | 100% allowed | Allowed with restrictions |
| Property Requirements | Must meet FHA standards | Standard appraisal |
Example Scenario
A Summerville buyer purchasing a $300,000 home with a 620 credit score and limited savings would likely benefit from FHA financing. With just $10,500 down (3.5%), they can qualify and keep cash reserves intact. A buyer with a 740 credit score and 10% down may save more long-term with a conventional loan since PMI drops off once they reach 20% equity.
When FHA Is the Better Choice
- Your credit score is between 580 and 680
- You have limited savings for a down payment
- Your down payment is coming from gift funds
- You have a higher debt-to-income ratio
- You are buying your first home in the Summerville or Charleston area
When Conventional Is the Better Choice
- Your credit score is 700 or higher
- You can put 10% or more down
- You want mortgage insurance to drop off automatically
- You are purchasing an investment property or second home
- The property may not meet FHA minimum standards
Related Resources
- FHA Loan Summerville SC — Overview of FHA financing in Summerville
- FHA Loan Requirements Summerville SC — Credit, income, and eligibility guidelines
- FHA Loan Rates Summerville SC — What affects your FHA rate
- FHA Loan Calculator — Estimate your monthly payment
- All Calculators — Compare payment scenarios side by side
Not Sure Which Loan Is Right for You?
We will walk you through both options and find the best fit for your budget and goals.
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South Carolina Property Tax Savings for Homeowners
South Carolina homeowners may qualify for the SC Homestead Exemption, which removes the first $50,000 of your primary residence fair market value from property tax — saving many homeowners $300–$700+ per year. Eligible buyers include those age 65+, legally blind, or totally disabled.
Read the Full SC Homestead Exemption Guide →
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