State Guide

First-Time Homebuyer Programs in South Carolina

Last updated: June 17, 2026

Overview

South Carolina first-time homebuyer assistance is led by the South Carolina State Housing Finance and Development Authority (SC Housing), which runs the SC Housing Homebuyer Program - a below-market 30-year fixed-rate first mortgage - paired with the Palmetto Home Advantage DPA program (up to $10,000, forgivable after 20 years of continuous owner occupancy) and SC Housing Assist for buyers who need help with closing costs in addition to down payment. Alongside SC Housing, USDA Rural Development financing is one of the most powerful tools in the state because so much of South Carolina outside the Charleston, Columbia, Greenville-Spartanburg, and Myrtle Beach metro cores qualifies as a USDA-eligible rural or suburban area - including most of the Pee Dee, the Lowcountry outside Charleston city limits, the Upstate small towns, and large portions of the Midlands. USDA loans offer 100% financing (no down payment required) and can pair with SC Housing's first mortgage and DPA when the loan is underwritten as USDA-RD. In Columbia, the City of Columbia Homebuyer Assistance Program provides up to $10,000; Charleston County runs a county-level Down Payment Assistance Program with up to $10,000 for buyers in unincorporated and participating municipal areas; and the City of Greenville Homeownership Assistance Program provides up to $10,000 for buyers inside Greenville city limits.

Down Payment Assistance Programs

SC Housing Homebuyer Program. SC Housing's below-market 30-year fixed-rate first mortgage, available with FHA, VA, USDA-RD, or conventional underwriting. Open to first-time buyers statewide (and repeat buyers in federally targeted areas). The Homebuyer Program is the platform that Palmetto Home Advantage DPA, SC Housing Assist, the SC Housing MCC, and city/county DPA programs in Columbia, Charleston County, and Greenville all attach to.
SC Housing Palmetto Home Advantage Down Payment Assistance. Up to $10,000 in down payment and closing cost assistance, structured as a forgivable second mortgage at 0% interest with no monthly payment - the full balance is forgiven after 20 years of continuous owner occupancy as the buyer's primary residence. If the home is sold, refinanced, or no longer owner-occupied before the 20-year mark, the unforgiven balance becomes due at that time. Available paired with the SC Housing Homebuyer Program first mortgage and applicable to FHA, VA, USDA, or conventional loans. Palmetto Home Advantage is the workhorse statewide SC Housing DPA product.
SC Housing Assist. SC Housing Assist provides additional down payment and closing cost assistance for buyers who need help with both - not just a down payment but also the closing costs, prepaid items (first-year homeowners insurance, prorated property taxes, escrow setup), and reserves required to close. Structured as a forgivable second mortgage on terms similar to Palmetto Home Advantage and designed to stack on top of (or in place of) the standard Palmetto product when the buyer's profile requires deeper closing-cost help. Available paired with the SC Housing Homebuyer Program first mortgage; an SC Housing-approved lender can confirm which DPA structure (Palmetto Home Advantage, SC Housing Assist, or both) fits your scenario.
USDA Rural Development (USDA-RD) Loans in South Carolina. USDA Rural Development guaranteed and direct loans offer 100% financing (no down payment required) for primary residences in USDA-eligible areas, and large portions of South Carolina qualify - including most of the Pee Dee, the Lowcountry outside Charleston city limits, the Upstate small towns and rural areas around Greenville and Spartanburg, and most of the Midlands outside the Columbia metro core. USDA Guaranteed loans (the most common product) require household income at or below 115% of area median income and a credit score generally of 640 or higher; USDA Direct loans serve very-low and low-income buyers with subsidized interest rates as low as 1% after payment assistance. SC Housing's Homebuyer Program can be underwritten as a USDA first mortgage, which lets the buyer keep SC Housing's below-market pricing and layered DPA while taking advantage of USDA's zero-down structure - the DPA can then be applied to closing costs, prepaid items, and reserves instead of a down payment. Property eligibility is determined by address, not buyer characteristics; confirm at the USDA Rural Development eligibility map before assuming a South Carolina address qualifies.
SC Housing Mortgage Credit Certificate (MCC). A federal tax credit equal to a percentage of the annual mortgage interest paid (capped at $2,000 per year), available to eligible first-time buyers using SC Housing financing. The MCC reduces federal income tax liability dollar-for-dollar each year for the life of the loan as long as the home remains the buyer's primary residence.

Income and Purchase Price Limits

SC Housing income and purchase price limits vary by county and household size. Income limits generally range from roughly $80,000 in lower-cost South Carolina counties to $110,000+ in Charleston, Berkeley, Dorchester, Greenville, and Lexington counties for 1-2 person households. Purchase price limits typically fall in the $325,000-$425,000 range across most of the state. USDA Guaranteed loans use a separate income limit (115% of area median income) that often allows higher household income than SC Housing's standalone limits in the same county. Always confirm current SC Housing and USDA income and purchase price limits with an SC Housing-approved lender or at schousing.com before assuming eligibility.

City and County Programs Worth Knowing

Columbia, Charleston County, and Greenville each run local down payment assistance programs designed to stack with SC Housing's Homebuyer Program and Palmetto Home Advantage. All three are income restricted and require HUD-approved homebuyer education before application.

City of Columbia Homebuyer Assistance Program. Up to $10,000 in down payment and closing cost assistance for income-qualified first-time buyers purchasing a primary residence inside City of Columbia limits. Structured as a deferred or forgivable second mortgage with multi-year continuous owner-occupancy requirements, HUD-approved homebuyer education required, and designed to stack with SC Housing's Homebuyer Program and Palmetto Home Advantage DPA. Funding cycles can exhaust mid-year - confirm availability with the City of Columbia Community Development Department before applying.
Charleston County Down Payment Assistance Program. Up to $10,000 in down payment and closing cost assistance for income-qualified first-time buyers purchasing a primary residence in unincorporated Charleston County and participating municipalities. Structured as a deferred or forgivable second mortgage with multi-year continuous owner-occupancy requirements, HUD-approved homebuyer education required, and designed to stack with SC Housing's Homebuyer Program and Palmetto Home Advantage. Because Charleston County has some of the highest purchase prices in the state, this program is most often paired with SC Housing Assist (for deeper closing-cost help) in addition to Palmetto Home Advantage. Funding cycles can exhaust mid-year - confirm availability with Charleston County Community Development before applying.
City of Greenville Homeownership Assistance Program. Up to $10,000 in down payment and closing cost assistance for income-qualified first-time buyers purchasing a primary residence inside City of Greenville limits. Structured as a deferred or forgivable second mortgage with multi-year continuous owner-occupancy requirements, HUD-approved homebuyer education required, and designed to stack with SC Housing's Homebuyer Program and Palmetto Home Advantage. Note that much of the Greenville-Spartanburg area outside city limits is USDA-eligible, so buyers near but not inside the City of Greenville should evaluate USDA-RD + SC Housing as an alternative stack. Funding cycles can exhaust mid-year - confirm availability with the City of Greenville Community Development Division before applying.

All three local programs run on funding cycles that can exhaust mid-year, and homebuyer education must be completed before application - not after offer acceptance. The city/county agency review steps extend closing timelines by several weeks beyond a standard SC Housing-only closing; plan that into the front of your timeline and confirm current funding availability with the administering agency before counting on it in your offer.

FHA Loan Requirements in South Carolina

FHA loans are widely used by South Carolina first-time buyers and are compatible with SC Housing's Homebuyer Program and DPA. Across most of South Carolina, FHA loan limits use the standard single-family ceiling, with higher limits in the Charleston-North Charleston metro.

Minimum requirements to qualify for an FHA loan in South Carolina:

Credit score: 580 or higher for 3.5% down payment with standard FHA. SC Housing typically requires 640 or higher.
Down payment: 3.5% of the purchase price with a 580+ credit score. SC Housing DPA can cover this and most closing costs.
Debt-to-income ratio (DTI): Generally 45% or below for SC Housing (FHA itself allows up to 50% with compensating factors).
Employment history: Two years of consistent employment or verifiable income history.
Primary residence: FHA loans require owner occupancy - not eligible for investment properties or vacation homes.
Mortgage insurance: FHA loans require an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, plus an annual premium of 0.45% to 1.05%.

USDA Rural Development loans in South Carolina:

USDA-RD is often the better fit than FHA for South Carolina buyers whose target property sits in a USDA-eligible area, because USDA requires no down payment at all (versus FHA's 3.5%) and has lower monthly mortgage insurance equivalent (the USDA annual fee) than FHA's MIP. Eligibility is determined by both the property address and the buyer's household income.

Property eligibility: Address must be in a USDA-designated rural or suburban area. Most of South Carolina outside the Charleston, Columbia, Greenville-Spartanburg, and Myrtle Beach urban cores qualifies. Check the USDA Rural Development eligibility map by address.
Income limit: Household income at or below 115% of area median income for USDA Guaranteed loans; very-low and low-income tiers for USDA Direct loans.
Credit score: 640 or higher for USDA Guaranteed (most lenders); USDA Direct has more flexible credit underwriting.
Down payment: 0% required - USDA loans offer 100% financing of the appraised value.
Mortgage insurance equivalent: USDA charges a 1.0% upfront guarantee fee (financed into the loan) plus a 0.35% annual fee - lower than FHA's MIP in most scenarios.
Primary residence: USDA loans require owner occupancy as a primary residence.

When you pair USDA with SC Housing's Homebuyer Program, the USDA first mortgage handles the zero-down structure and SC Housing's DPA can be redirected to cover closing costs, prepaid items (escrow setup, first-year homeowners insurance, prorated property taxes), and cash reserves - meaning eligible buyers can often close with little to no money out of pocket beyond earnest money and inspection fees.

FHA loan limits in South Carolina for 2025:

FHA loan limits in South Carolina use the standard single-family limit of $524,225 across most counties, with the Charleston-North Charleston metro (Charleston, Berkeley, and Dorchester counties) designated as a higher-cost area with limits above $600,000. USDA loans use the appraised value of the property as the effective limit rather than a county loan-limit ceiling. Confirm the current FHA limit for your target county at HUD.gov.

How to Apply

Confirm you have not owned a primary residence in the past three years for SC Housing's Homebuyer Program (waivers apply in federally targeted areas and for qualifying veterans). USDA loans have no first-time-buyer requirement.
Check your credit score - 580 is the FHA minimum for 3.5% down, and SC Housing and USDA Guaranteed both typically require 640 or higher.
Review current SC Housing income and purchase price limits for your county at schousing.com, and check USDA income limits (115% of area median income) if you're considering a rural or suburban property.
Check the USDA Rural Development eligibility map by property address - many South Carolina addresses just outside the major metros qualify, and USDA's zero-down structure plus SC Housing DPA is often the most efficient stack available.
Complete a HUD-approved homebuyer education course - required by SC Housing.
Select an SC Housing-approved lender experienced with USDA underwriting if you're targeting a USDA-eligible property - not all SC Housing lenders are equally fluent in USDA-RD.
Apply through your approved lender, who will coordinate the SC Housing application, the USDA Guaranteed loan submission (if applicable), and any DPA approval simultaneously.

FAQ

What credit score do I need for SC Housing programs?

SC Housing generally requires a minimum credit score of 640 for both the Homebuyer Program first mortgage and the bundled DPA. FHA itself allows scores as low as 580 for 3.5% down, but SC Housing's overlay is higher. USDA Guaranteed loans also typically require 640 from most lenders.

Is my South Carolina property eligible for a USDA loan?

Most South Carolina addresses outside the Charleston, Columbia, Greenville-Spartanburg, and Myrtle Beach urban cores qualify for USDA Rural Development financing - including most of the Pee Dee, the Lowcountry outside Charleston city limits, the Upstate small towns, and most of the Midlands. The only way to confirm is to check the USDA Rural Development eligibility map by your exact property address; eligibility is by address, not by ZIP code or city name, and the lines can run street by street at the edge of metro areas.

Why use USDA instead of FHA in South Carolina?

If your target property is USDA-eligible and your household income is at or below 115% of area median income, USDA is almost always cheaper than FHA. USDA requires zero down payment (versus FHA's 3.5%), the annual fee is 0.35% (versus FHA's 0.45%-1.05% MIP), and the upfront guarantee fee is 1.0% (versus FHA's 1.75% UFMIP). On a $250,000 loan, that's roughly $150-$200 lower monthly payment than the equivalent FHA loan in most scenarios. The trade-off is geographic and income eligibility - if the property isn't in a USDA-eligible area or your income exceeds 115% AMI, FHA (often paired with SC Housing DPA) is the standard alternative.

Can I use SC Housing DPA with a USDA loan?

Yes - SC Housing's Homebuyer Program first mortgage can be underwritten as USDA-RD, which means the same SC Housing DPA that would normally cover an FHA 3.5% down payment can instead be applied to closing costs, prepaid items (escrow setup, first-year homeowners insurance, prorated property taxes), and reserves. The combination of USDA's zero-down structure and SC Housing DPA covering closing costs is one of the most efficient first-time-buyer stacks available in eligible South Carolina areas - many buyers close with little more than earnest money and inspection fees out of pocket.

What's the difference between USDA Guaranteed and USDA Direct?

USDA Guaranteed loans are originated by SC Housing-approved lenders and guaranteed by USDA - they're the standard USDA-RD product, with income limits at 115% of area median income and credit scores typically 640+. USDA Direct loans are made directly by USDA Rural Development to very-low and low-income buyers (typically below 80% AMI), with subsidized interest rates that can be as low as 1% after payment assistance and longer terms (up to 38 years for very-low-income borrowers). Most South Carolina buyers use Guaranteed; Direct is reserved for buyers who would not qualify for any other mortgage financing.

How long does it take to close using SC Housing plus USDA?

Expect 40 to 60 days. SC Housing plus FHA closings track close to standard timelines (35-45 days), and adding USDA underwriting (which includes a USDA conditional commitment step) typically adds 10 to 20 days. Homebuyer education should be completed before you start house hunting - not after offer acceptance - to avoid pushing the timeline further.