SouthState Invests $10 million in Forgivable Second Mortgage Fund to Aide Homebuyers
WINTER HAVEN, Fla., May 30, 2023 /PRNewswire/ -- SouthState Bank today announced the introduction of a new mortgage option called the "Opportunity Advantage Loan Fund" that is designed to help qualified1 low-to-moderate income (LMI) potential homebuyers overcome the financial barriers associated with purchasing a primary home. SouthState has allocated a sum of $10 million that will be drawn from over a three-year period to create the Fund.
The Opportunity Advantage Loan Fund is available for LMI homebuyers in Alabama, Florida, Georgia, the Carolinas and Virginia (Richmond) for any applications received after May 15, 2023. The main features of the program include:
A loan fund of up to $12,500 can be awarded to qualifying buyers for use towards down payment, closing costs, or other fees related to the purchase of a primary residence.
The loan is 100% forgivable with no repayment and 0% interest if the buyer owns the home for at least five years. If the home is sold prior to five years of ownership, there are repayment stipulations. Information regarding those stipulations can be found here.
This offer must be combined with a Buyer's Advantage, Community Advantage, Home Ready or Home Possible mortgage.
"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."
In order to be eligible for the Opportunity Advantage Loan Fund program, applicants must have an income of 80% or less of the county area median income adjusted for family size. The borrower must have a minimum 640 FICO credit score. In addition, the funds from this program may only be used on the purchase of a primary residence.
"We are committed to helping our communities succeed, and helping residents of our communities obtain affordable housing is a primary focus for SouthState," said Brent Harrell, Mortgage co-president. "Our mortgage bankers are excited to help customers take advantage of this new loan program."
Qualified applicants must meet eligibility requirements for the purchase mortgage per SouthState Bank or agency underwriting guidelines. Applicant income must be less than or equal to 80% of the county area median income adjusted for family size as published by HUD. Not available with all loan products. NMLS ID# 403455. Equal Housing Lender. Member FDIC.
SouthState Corporation (NASDAQ: SSB) is a financial services company headquartered in Winter Haven, Florida. SouthState Bank, N.A., the company's nationally chartered bank subsidiary, provides consumer, commercial, mortgage and wealth management solutions to more than one million customers throughout Florida, Alabama, Georgia, the Carolinas and Virginia. The bank also serves clients coast to coast through its correspondent banking division. Additional information is available at SouthStateBank.com.
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SOURCE South State Bank N.A.
