Down payment assistance, grants, forgivable loans, and tax credits available to South Carolina buyers. Each program below is verified, with eligibility rules, benefit amounts, and a direct link to the official agency.
Last reviewed September 2026·3 programs·6 federal programs
Administered by SC State Housing Finance and Development Authority
Up to $25,000
Zero-interest second mortgage for down payment and closing costs, fully forgiven after 10 years if the buyer remains in the home; available only on 130 newly built homes at five partner-builder sites (Columbia, Darlington, Sumter, Spartanburg, Rock Hill).
Income limit
Annual income of $135,000 or less, or the county income limit if lower
First-time buyer requiredYes
Special requirements: Must buy a home from a participating builder (McGuinn Homes, D.R. Horton, Oak and Avenue Property Group, Gainey Construction, Housing Development Corporation of Rock Hill); primary residence; finance through an SC Housing-approved lender; cannot combine with other SC Housing DPA (FHLB assistance may be layered); buyers using the Bond program must meet the first-time-buyer definition
View official program page
Contact the participating builder for the desired location, then an SC Housing-approved lenderVerified September 2026
Palmetto Home Advantage
Administered by SC State Housing Finance and Development Authority
3% or 4% of the loan amount (0% option also available)
Forgivable down payment assistance of 3% or 4% of the loan amount with no monthly payment (10-year forgivable DPA term per the 2026/2027 limits sheet), paired with conventional, FHA, VA or USDA first mortgages; reduced 18% mortgage insurance on conventional loans below 80% AMI; no sales price limit; all 46 counties.
Income limit
$140,000 (1-2 person) / $140,000 (3+)
Minimum credit score640
First-time buyer requiredNo
Special requirements: Conventional options up to 97% LTV on single-unit properties; follows Fannie Mae/Freddie Mac insurer guidelines
Administered by SC State Housing Finance and Development Authority
Competitive rate + $10,000 DPA
Below-market mortgage rate with $10,000 down payment assistance as a 0% no-payment second over a 15-year term, forgiven only if you stay the full 15 years (due in full if you sell, refinance, or move out earlier).
Income limit
County-specific 2026/2027 limits effective for reservations on/after 06/01/2026: e.g. $95,800 (1-2 persons)/$110,170 (3+) in most non-targeted counties, up to $141,000/$164,500 in Berkeley and Dorchester; any county not listed $114,960/$134,120; home price limit $450,000 statewide. First-time buyer rule applies in 12 non-targeted counties; targeted counties require only no current ownership.
Minimum credit score640
First-time buyer requiredYes
Special requirements: Must be first-time buyer. Homebuyer education required. (Repeat buyers: see Palmetto Home Advantage, up to 4% DPA, income limit $137,500.)
3% minimum down payment with no minimum borrower contribution; income at or below 80% AMI (2026 AMIs effective June 13, 2026); reduced, cancellable mortgage insurance; $2,500 credit for very low-income first-time buyers on loans purchased through February 28, 2027.
Do I have to be a first-time homebuyer to qualify?
Most South Carolina programs require first-time buyer status, but the definition is broader than most people think — the IRS considers you a first-time buyer if you haven't owned a primary residence in the last three years. Each program above lists its specific rules.
What credit score do I need?
Minimum credit scores vary by program. Most South Carolina programs require 620 to 660, though some lower-tier products accept lower scores with manual underwriting. Check each program's eligibility section above.
How do I actually apply?
Most state programs aren't applied to directly — you go through a participating lender, who handles the program application as part of your mortgage. Each program above links to the official agency page with the current list of approved lenders.
Can I combine multiple programs?
Often yes — many states allow you to stack a state down-payment grant with a federal FHA or VA loan. Some programs explicitly forbid combining; check each program's "special requirements" above.
Do these programs cost anything?
The programs themselves are free to apply for. Some require completing a homebuyer education course (typically $50–$100, sometimes free). Forgivable second mortgages technically don't cost you unless you sell or refinance early — read the terms carefully.
