FHA Home Loans in Myrtle Beach
FHA offers low down payment and flexible credit terms that put homeownership within reach in Myrtle Beach. The affordable terms make this an ideal option for first-time buyers.
FHA Loans in Myrtle Beach: 3.5% Down for Grand Strand Buyers
FHA loans offer Myrtle Beach buyers a low 3.5% down payment, flexible credit guidelines starting at 580, and a $498,257 loan limit that covers the vast majority of Horry County's housing market. Beaufort Lending originates FHA loans across the Grand Strand — from Conway to North Myrtle Beach — and accesses FHA pricing from 20+ lenders to find you the most competitive rate available.
Why FHA Works Well in the Myrtle Beach Market
With a median home price near $310,000, Myrtle Beach is one of the most accessible coastal markets in South Carolina — and FHA financing aligns well with that affordability range. A 3.5% down payment on a $310,000 home is roughly $10,850, making homeownership achievable for buyers who haven't accumulated a large down payment. FHA's flexible credit qualifying also makes it the go-to program for buyers who have solid income but a prior credit event.
Low Down Payment
3.5% down on homes up to $498,257 in Horry County. Down payment funds can come from savings, gifts from family members, or employer assistance — no minimum borrower contribution required on FHA.
Flexible Credit Guidelines
580 minimum credit score for 3.5% down. Borrowers with scores 500–579 can still qualify with 10% down. FHA is more forgiving of past bankruptcies, collections, and late payment history than conventional underwriting.
Higher DTI Tolerance
FHA allows debt-to-income ratios up to 50% or higher with compensating factors — giving buyers with student loans, car payments, or other obligations more purchasing power than conventional financing allows.
Multi-Unit House Hacking
FHA allows purchases of 2–4 unit properties with just 3.5% down if you occupy one unit as your primary residence. With Myrtle Beach's strong rental demand, a duplex can dramatically offset your monthly housing cost.
FHA Mortgage Insurance Premium (MIP) Chart
FHA requires both an upfront MIP of 1.75% (added to the loan balance at closing) and an annual MIP paid monthly. The annual rate depends on your loan term and down payment amount.
| Loan Term | Down Payment / LTV | Annual MIP Rate | Duration |
|---|---|---|---|
| 30-year | Less than 10% (LTV > 90%) | 0.55% | Life of loan |
| 30-year | 10% or more (LTV ≤ 90%) | 0.50% | 11 years |
| 15-year | Less than 10% (LTV > 90%) | 0.40% | Life of loan |
| 15-year | 10% or more (LTV ≤ 90%) | 0.15% | 11 years |
FHA vs. Conventional: Which Loan Is Right for You?
FHA and conventional loans serve the same market but in different situations. Use this side-by-side comparison to see where each program has an edge for Myrtle Beach buyers.
| Factor | Conventional | FHA |
|---|---|---|
| Down Payment | 3% (first-time) / 5% (repeat) Lower available | 3.5% minimum |
| Min Credit Score | 620 | 580 Lower barrier |
| Gift Funds Allowed | Yes — with documentation | Yes — with documentation |
| Mortgage Insurance | PMI cancels at 20% equity Cancellable | MIP for life of loan (<10% down) |
| Upfront Costs | No upfront MI Lower closing cost | 1.75% UFMIP added to loan |
| DTI Limit | ~45% standard max | Up to 50%+ with compensating factors More flexible |
| Loan Limit (Horry County) | $766,550 Higher ceiling | $498,257 |
| Best For | Credit scores 680+, buyers near 20% equity soon | Credit scores 580–679, prior credit events, higher DTI |
FHA Loans & Myrtle Beach Condos
FHA condo financing is available in approved projects only — and Myrtle Beach's condo market requires careful navigation. Many oceanfront buildings with hotel-style rental programs are classified as condotels and are ineligible for FHA. However, numerous inland complexes, townhome communities, and newer developments throughout Horry County carry FHA approval.
Condo approval check included: Before you make an offer on any Myrtle Beach condo, we verify FHA project approval. If the complex isn't currently approved, we can check eligibility for single-unit approval — available for projects where at least 50% of units are owner-occupied.
Getting Rid of FHA MIP: The Refinance Path
Unlike conventional PMI, FHA MIP on loans with less than 10% down does not automatically cancel when you reach 20% equity. The standard exit strategy is refinancing into a conventional loan. With Myrtle Beach home values appreciating steadily, many buyers reach the 20% equity threshold faster than expected. When you do, we run a refinance analysis to see if dropping MIP lowers your total payment enough to justify the transaction.
Frequently Asked Questions: FHA Loans in Myrtle Beach
What is the FHA loan limit in Myrtle Beach for 2024?
The 2024 FHA loan limit for Horry County is $498,257 for a single-family home — well above the Grand Strand's median home price. Multi-unit limits are higher: $637,950 for a duplex, $771,125 for a triplex, and $958,350 for a four-unit property.
What credit score do I need for an FHA loan in Myrtle Beach?
FHA requires a minimum 580 credit score for the 3.5% down payment option. Scores between 500–579 may still qualify with 10% down. Scores above 640 typically receive the most favorable rates and easiest underwriting.
Are FHA loans available for condos in Myrtle Beach?
FHA loans are available for condos in FHA-approved projects only. Many oceanfront condotels are ineligible, but numerous inland complexes throughout Horry County are approved. We verify project approval status before you make an offer.
How does FHA mortgage insurance work and when does it go away?
FHA requires an upfront MIP of 1.75% (financeable) and annual MIP at 0.55% for most 30-year loans with less than 10% down. With under 10% down, MIP lasts the life of the loan. The standard exit strategy is refinancing into conventional once you reach 20% equity.
Get Your FHA Rate Quote for Myrtle Beach
We'll check your eligibility, confirm the loan limit for your target neighborhood, and price your FHA loan against 20+ lenders — so you know your real buying power before you start touring homes.
Call us: (843) 524-2404