South Carolina State Housing Finance and Development Authority (SC Housing) Programs:
Updated July 30, 2026SC Housing offers long-term fixed mortgages through approved lenders and layered, often-forgivable down payment assistance (DPA). Check program availability, county-specific income/purchase limits, and lender lists at SC Housing — Programs for Homebuyers or contact an SC Housing‑approved lender.
South Carolina First-Time Homebuyer Mortgage Programs:
Eligibility: First-time buyers (no ownership in the past 3 years) — some targeted counties and veteran exceptions/waivers apply.
Offerings: 30-year fixed options (FHA, VA, USDA, or conventional) through participating lenders; forgivable or deferred DPA commonly available when paired with an SC Housing first mortgage.
Key program rules (high-level):
- Household income and home-price limits are county-specific (effective 06/01/2026 table). Example county entries: Charleston non-targeted limits ~ $117,500 (1–2 persons) / $135,125 (3+); Greenville ~ $106,400 / $122,360. Many bond-funded loans share a common $450,000 sales-price cap. See SC Housing’s official limits PDF. Income & Home Price Limits (06/01/2026).
- Common purchase-price cap on many bond loans: $450,000 (check your county in the limits PDF above).
- Minimum credit score: program-specific. SC Housing’s bond program directs lenders to program guides for minimums; the Palmetto Home Advantage product commonly requires a minimum credit score of 640 (product guide). Lender and insurer overlays matter — confirm with your mortgage lender. See the SC Housing Homebuyer Program manual and the Palmetto guide for details. SC Housing Homebuyer Program Manual (04/03/2026) — Palmetto Home Advantage Program Guide (06/01/2026).
- Maximum debt-to-income (DTI): Bond (SC Housing Homebuyer) loans generally use the lesser of 45% or AUS approval. Palmetto Home Advantage products commonly use the lesser of 50% or AUS approval (product-specific exceptions apply). See manuals/guides above.
- Mandatory homebuyer education is required for most DPA recipients; lenders generally coordinate enrollment with SC Housing‑approved counselors.
Down Payment Assistance (DPA) Options:
SC Housing Forgivable DPA (Bond program): SC Housing typically offers a zero‑percent second mortgage that is deferred/forgivable after a set occupancy term (used for down payment, closing costs, and prepaid items). Terms and amounts vary by product and county—see the SC Housing Homebuyer pages and the limits PDF above for current terms. SC Housing Homebuyer Program.
Palmetto Home Advantage: Offers forgivable DPA tiers (0%, 3%, or 4% of the loan amount) with no sales-price limits for the Palmetto product; the statewide borrower income limit effective 06/01/2026 is published at $140,000. Program handouts and the Palmetto guide explain borrower credit/DTI minima and the 10‑year forgivable term. Palmetto Home Advantage and Palmetto Home Advantage Program Guide (06/01/2026).
Palmetto Heroes (public service workers):
Description: A special round for eligible public servants (teachers, nurses, law enforcement, firefighters, EMTs/paramedics, veterans/active duty/National Guard) offering forgivable DPA paired with SC Housing financing.
- The 2026 Palmetto Heroes campaign featured $10,000 in forgivable DPA and closed April 13, 2026; future rounds are announced by SC Housing and are fund-limited/first‑come‑first‑served. Palmetto Heroes — SC Housing (Apr 2026).
- Funds are typically reserved after an executed sales contract; check SC Housing for the next round and lender reservation instructions.
Local Programs (examples and official links):
Many cities and counties offer local DPA or forgivable‑loan programs that may stack with SC Housing assistance. Local programs change funding and rules often — contact the local housing department or program administrator directly.
Charleston / Charleston County
The City’s Homeownership Initiative and related CDBG/HOME-funded activities provide development subsidies and down payment assistance to income‑eligible first‑time buyers (consolidated-plan and program materials reference DPA tiers and developer subsidies; some City programs have historically offered assistance commonly up to about $20,000). Verify current availability and exact dollar limits through the City’s housing pages. City of Charleston — Homeownership Initiative.
Columbia / Richland County
Richland County Homeownership Assistance (official): County materials and official agendas reference a deferred/forgivable loan program to assist eligible first‑time buyers in unincorporated Richland County (public documents have cited assistance up to about $24,500). See the county page for current application steps and workshop requirements. Richland County Homeownership Assistance.
Greenville / Greenville County
Community-based administrators (for example, CommunityWorks Carolina) manage county and employer-assisted DPA programs in the Upstate. Typical assistance levels vary by program (examples: $5k–$10k or higher in targeted employer programs); confirm current availability directly with the program administrator. CommunityWorks Carolina — Down Payment Assistance.
Additional Information:
- USDA Loans: Rural properties may qualify for USDA guaranteed or direct loans with no down payment for eligible borrowers — check USDA Rural Development for program details and property eligibility. USDA Rural Development — SFH Guaranteed Loans.
- VA Loans: Eligible veterans/active-duty borrowers can often use VA purchase loans with no required down payment (see VA benefits and lender requirements). VA — Home Loans overview.
- FHA Loans: FHA typically allows a minimum 3.5% down payment for borrowers with credit scores of 580 or higher (higher down payment required for lower scores); confirm with your lender and HUD/FHA guidance. HUD/FHA — Single Family Housing.
Always confirm program availability, income/purchase limits, and current funding windows with the official program pages or an SC Housing-approved lender: schousing.sc.gov.
Seeking Agents® connects you with South Carolina agents who understand these programs and compete to offer reduced commissions or added services—free for buyers/sellers!