First-Time Home Buyer Programs in South Carolina

South Carolina State Housing Finance and Development Authority (SC Housing) Programs:

SC Homebuyer Program:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted counties; exceptions apply.
Offerings: Provides a 30‑year fixed‑rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; may include down payment assistance.
Requirements:

• Income and home‑price limits vary by county; see the SC Housing Homebuyer Program for full details.
• Minimum credit score: 620 (FHA), 640 (conventional).
• Debt-to-income ratio capped at 45% (may increase to 50% with compensating factors).
• Homebuyer education required if using down payment assistance.

Forgivable Down Payment Assistance (DPA):

Benefits: Offers $6,000–$10,000 in forgivable assistance as a second mortgage (0% interest, forgiven after 15 years if not sold/refinanced).
Eligibility: Must use an SC Housing first mortgage; income and credit requirements apply.

Palmetto Home Advantage:

Description: Offers 0%, 3%, 4%, or 5% forgivable DPA as a second mortgage based on income and loan type; available to both first-time and repeat buyers.
More Info: Palmetto Home Advantage Program

Palmetto Heroes (2025):

Benefits: Provides $10,000 in forgivable down payment assistance for eligible community heroes (forgiven after 15 years).
Eligibility: Available to full-time educators, law enforcement, firefighters, EMTs, nurses, correctional officers, veterans, and active military.
More Info: Palmetto Heroes Program

Local Programs:

Charleston

Charleston Down Payment Assistance: Offers up to $15,000 as a deferred loan (0% interest, due upon sale or refinance) for down payment and closing costs; income must be at or below 80% AMI (e.g., ~$66,750 for a family of four).

Columbia

Columbia First-Time Homebuyer Program: Provides up to $12,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income capped at 80% AMI; targets revitalization areas.

Greenville

CommunityWorks DPA: Offers up to $25,000 in forgivable assistance depending on income; 0% interest, forgiven after 5–8 years; targets low-to-moderate income homebuyers.
More Info: CommunityWorks Homebuyer Assistance

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 30% of annual mortgage interest (max $2,000/year); may be used with SC Housing loans; a fee applies.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural South Carolina areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.