South Carolina First-Time Home Buyer Programs of 2024

Officially known as the South Carolina State Housing Finance and Development Authority, SC Housing works with lenders, home builders and government officials to assist first-time home buyers in the Palmetto State.

SC Housing offers low-income and low- to moderate-income residents down payment and closing cost assistance to help make homeownership happen.

SC Housing highlights and eligibility requirements

SC Housing enables 30-year fixed-rate FHA, VA, USDA or conventional loans with down payment and closing cost assistance. Local lenders make the mortgages, according to SC Housing guidelines. Loan costs include a 1% origination fee.

Each loan program has its own list of details, but here is an overview of some common characteristics.

Highlights

• 30-year fixed-rate loans.

• Down payment and closing cost assistance.

• Reduced mortgage insurance premiums on some loans.

Eligibility

• Completion of a home buyer education course is required for down payment assistance.

• A minimum credit score of 620 may be required, depending on the program — though your qualifying credit score does not assure loan approval.

• Borrowers can be first-time home buyers or repeat buyers, depending on the program.

• Income and home price limits apply.

SC Housing first-time home buyer programs

SC Housing home loans

Best for: Low interest rates and cash assistance

What you need to know:

SC Housing offers 30-year fixed-interest-rate loans and down payment assistance to first-time buyers through participating lenders, including conventional, FHA, VA and USDA mortgages. Qualifying requirements vary by loan program. Eligible South Carolina properties include single-family homes, modular homes, townhomes and lender-approved condominiums.

Forgivable down payment assistance

Best for: Loans with assistance that isn’t paid back

What you need to know:

For households earning low to moderate incomes, cash assistance is available as a forgivable second mortgage. There is no interest charged and no payments are due. After 15 years of residing in the home, the loan is forgiven.

Palmetto Home Advantage

Best for: Loans with assistance that isn’t paid back

What you need to know:

This program for first-time and repeat home buyers offers government-backed and conventional loans at market rates with forgivable down payment assistance. Income limits apply. Palmetto Home Advantage offers reduced rates on mortgage insurance, which can be canceled entirely when requirements are met.

Although these programs are administered by SC Housing, locally authorized lenders do the paperwork and have varying qualifying guidelines. Shop around and compare offers from lenders to get the best terms for your particular circumstance.

For details on available loan and assistance programs, visit the SC Housing website.

To get started, consult the list of lenders that participate in SC Housing programs.

» MORE: The best homeowners insurance in South Carolina

First-time home buyer programs near South Carolina

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