• Menu
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

NewHomeSource

  • Learning Center
  • Just For You
    • First Time Home Buyers
    • 55 Plus
    • International Buyers
    • For The Military
    • Single Women
  • Home Types
    • Custom Homes
    • Condos & Townhomes
    • Luxury Homes
    • Tiny Houses
    • Manufactured Homes
  • Resources
    • Home Buying Tools
    • Mortgage Calculator
    • Home Affordability Calculator
    • Trustbuilder Ratings & Reviews
  • Learning Center
  • Just For You
    • First Time Home Buyers
    • 55 Plus
    • International Buyers
    • For The Military
    • Single Women
  • Home Types
    • Custom Homes
    • Condos & Townhomes
    • Luxury Homes
    • Tiny Houses
    • Manufactured Homes
  • Resources
    • Home Buying Tools
    • Mortgage Calculator
    • Home Affordability Calculator
    • Trustbuilder Ratings & Reviews
Home ยป First-Time Buyers ยป First-Time Homebuyer Programs in South Carolina

First-Time Homebuyer Programs in South Carolina

Aerial shot of Rainbow Row in Charleston, SC.
Image courtesy of Dreamstime.

Sunshine and warm weather all year round, some of the lowest property taxes in the nation and a mix of stunning coastlines, beaches, historic towns. Welcome to South Carolina with all of its charms, its slower pace of life and its quintessential Southern hospitality. Are you a first-time homebuyer ready to buy your first property in the Palmetto State?

With some careful planning on your part, homeownership is an attainable milestone in South Carolina. The stateโ€™s average home price is $162,300, which is much lower than the 2021 national average of about $269,000. The coastal state also has incredibly low property taxes, to the tune of just 0.57 percent of your propertyโ€™s value. Thatโ€™s one of the lowest rates across the United States, South Carolina also boasts many affordable cities.

But hereโ€™s the kicker: South Carolina has a series of statewide and local homeownership assistance programs that can help first-time homebuyers with key components of the homebuying process. These resources can help you with securing a low-interest, fixed-rate mortgage to even covering off a portion of your down payment and closing costs. Ultimately, these first-time homebuyer programs could save you tens of thousands of dollars.

Whether youโ€™re homebuying in Charleston to Hilton Head and anywhere in between, read on to learn more about these programs, their eligibility requirements and how to apply.

Who Qualifies as a First-Time Homebuyer in South Carolina?

For a quick clarification, a first-time homebuyer in South Carolina is defined as any family or individual who has never owned a home, or at least not in the past three years depending on the region. Some of the statewide programs, for example, suggest residents are still eligible if they havenโ€™t owned a home in the past three years or longer. Itโ€™s worth waiting it out if youโ€™re nearing the three-year mark because these programs provide a significant financial boost.

As always, when youโ€™re doing your research, read the fine print and any limitations we list below.

Statewide Homeownership Assistance Programs

Every state has its official housing authority that runs a series of homebuyer programs to help residents with buying a home. Here, itโ€™s the South Carolina State Housing Financing Development Authority โ€“ or SC Housing.

SC Housingโ€™s programs are tailored to help first-time homebuyers and repeat homebuyers who havenโ€™t owned a home in the past three years and fall within income and home purchase price limits. Across the board, homebuyers need to complete a homebuyersโ€™ education course. You must also have a minimum credit score of 620.

Hereโ€™s a closer look at each programโ€™s details, how to apply as well as the fine print.

SC Housing Home Loans Program

SC Housingโ€™s home loans program is the organizationโ€™s flagship resource, providing 30-year fixed-interest rate loans with reduced mortgage insurance premiums to save you some extra cash. The program also comes with down payment assistance, which you can read more about below.

You can secure a home loan if youโ€™re a first-time buyer or repeat homebuyer who hasnโ€™t owned a home in the past three years. You must also work with a participating lender.

Make sure your credit score is in good standing and at about 620 and that youโ€™re sticking to income and home purchase price limits. The guidelines show that your homeโ€™s purchase price limit will range from a maximum of $225,000 up to $300,000 depending on the county, while income limits range from $53,050 to $114,100 and the size of your household.

Single-family homes, modular homes, townhouses and lender-approved condominiums are all fair game for this program.

Read more about SC Housing Home Loans here.

SC Housing Palmetto Home Advantage Program

The Palmetto Home Advantage is one of the newer programs to join the SC Housingโ€™s roster of homeownership resources. In this case, the program is available to first-time homebuyers and repeat homebuyers alike shopping for a new home in South Carolina.

The Palmetto Home Advantage follow the same structure with offering a 30-year fixed-rate home loan set at a competitive interest rate. Homebuyers must stick to income, credit score and home purchase price limits, however the program differs slightly by providing additional financial assistance.

Eligible homebuyers can opt for a lower down payment, to the tune of 3 percent down so you donโ€™t need to save up a small fortune. You can also choose a 5 or 8 percent down payment to lower your monthly mortgage costs.

The Palmetto Home Advantage program also comes with reduced mortgage insurance. If your down payment is less than 20 percent of your homeโ€™s purchase price, you need to pay for your lenderโ€™s mortgage insurance in case you default on your loan. With the Palmetto Advantage you may be eligible for reduced rates on this mortgage insurance expense.

Finally, homebuyers eligible for the Palmetto Advantage can receive financial help with their closing costs and other fees.

This is a pretty generous program worth exploring. To learn more, read the full details and the fine print on the Palmetto Home Advantageโ€™s designated homepage.

SC Housing County First Initiative Program

The County First Initiative program is aimed specifically at helping South Carolina residents living in โ€œundeservedโ€ โ€“ or economically disadvantaged โ€“ areas of the state. You can check if your county is on this list here. Some of the counties include Abbeville, Allendale, Bamberg, Barnwell, Calhoun, Chesterfield, Clarendon, Colleton, Dillon, Edgefield, Fairfield, Georgetown, Hampton, Jasper, Marion, Marlboro and Newberry.

If your new home is in a targeted area, you may be eligible for the County First Initiative program, which offers fixed-rate mortgages that are set below market rate. Youโ€™re also eligible for up to $8,000 in down payment assistance to go towards your home purchase.

The program follows identical income, credit score and home purchase price limits. You also need to complete a homebuyersโ€™ education course to be eligible.

This program is available for first-time and repeat homebuyers. In this case, the focus is on helping homebuyers in targeted regions. You can read more about the County First Initiative on its dedicated website.

SC Housing Forgivable Down Payment Assistance Program

We all know coming up with a 20 percent down payment is one of the biggest obstacles standing in the way to homeownership. SC Housing is trying to help homebuyers with this tricky part of the process via a Forgivable Down Payment Assistance Program (DPA) that can be paired with the Home Loans or Palmetto Home Advantage programs.

If your household earns 80 percent or less of your local median areaโ€™s income, youโ€™re eligible for a $7,000 forgivable loan to help with your down payment. The loan is set at 10 years and a portion is forgiven each year. That means that if you use your home as your primary residence for a decade, you donโ€™t have to pay back a penny.

If your household earns more than 80 percent of your local median areaโ€™s income, youโ€™re eligible for a $7,000 loan set up as a 20-year-long second mortgage thatโ€™s forgiven over an extended period of time. There is no interest charged and no payments are made while youโ€™re using the home as your full-time residence.

If you sell your home, the balance is due but itโ€™s prorated depending on how long youโ€™ve lived on the property.

To be eligible, you must first secure an SC Housing home loan via any of the programs above. You must also complete a homebuyersโ€™ education course.

Read more about the SC Housing Down Payment Assistance Program.

SC Housing Mortgage Credit Certificate

Not all statesโ€™ housing authorities provide MCCs โ€“ luckily for homebuyers in the Palmetto State, SC Housing does.

The MCC provides eligible homebuyers a non-refundable federal income tax credit used with your mortgage. In a nutshell, it reduces your federal income taxes, creating additional income for you to use towards your mortgage payments and other household expenses.

Qualified homebuyers can credit up to 50 percent (up to a $2,000 maximum) of their annual mortgage interest paid against their year-end tax liability. The tax credit is allowed every year for the life of your original mortgage (up to 30 years).

The MCC can only be issued by SC Housing through a participating lender before closing and theyโ€™re typically set aside for low- to moderate-income homebuyers. Household income limits, and purchase price limits still apply.

SC Housing encourages homebuyers to double- and even triple-dip where possible. If you can secure an initial Palmetto Home Advantage loan with the lower mortgage insurance premiums, and Down Payment Assistance, you may still qualify for an MCC. At the end of the day, this trio of incentives could lead to thousands of dollars saved over the lifetime of your home loan. You can also double up with the original Home Loans program or the County First Initiative Program with down payment assistance and an MCC.

Read more about the Mortgage Credit Certificate.

Homebuyer Programs by Location in South Carolina

While SC Housingโ€™s series of statewide programs listed above can put you on the path to homeownership, there are local homebuyer assistance programs across South Carolina worth doing your research on, too.

Read more for our list of local programs.

Charleston

Antebellum homes in Charleston, SC,
Image courtesy of Dreamstime.

If youโ€™re shopping for a new home in Charleston, youโ€™re in luck. The vibrant city has a thriving real estate market with over 150 new home communities and there are local assistance programs available.

If youโ€™re a first-time homebuyer or a repeat homebuyer who is in a low- or middle-income bracket, check in with the Housing Authority of the City of Charleston and the Charleston County Housing and Redevelopment Authority.

Both organizations offer programs to help homebuyers who face financial difficulty. They especially offer help to low-income families, single-parent families and seniors,

Columbia

West Columbia skyline in South Carolina

Homebuyers with their sights set on South Carolinaโ€™s capital city should look into Columbiaโ€™s string of financial assistance programs to help homebuyers, first-timers and repeat buyers alike.

For starters, the city runs an Affordable Housing Loan Program, offering down payment assistance in the form of a second mortgage that can be worth up to 20 percent of your homeโ€™s loan amount. Essentially, this second mortgage will completely cover your down payment, and itโ€™s set at a rate of 1 percent below the market rate, fixed for 30 years by the city. You also waive the need for private mortgage insurance.

You must contribute $500 towards your down payment regardless of your homeโ€™s purchase price. You must stick to household income limits and purchase price limits, too. You must also complete homebuyersโ€™ education coursework and financial counseling provided by the city.

You can read more about Columbiaโ€™s Affordable Housing Loan Program here, including details on how to apply, and income and purchase price limits.

The City also runs an Employee Mortgage Program, provided to city of Columbia employees who have been working there for at least 12 months. In this case, youโ€™re eligible for a first mortgage of 75 percent of your homeโ€™s sales price at market rate for 30 years, followed by a second mortgage worth 25 percent of your homeโ€™s sales price set at 2 percent interest for 30 years. With this combination of loans, youโ€™re off the hook for saving up for a down payment and can take your time repaying the city for your home purchase.

All single-family detached homes are eligible as long as theyโ€™re within City of Columbia limits.

You can check out the Employee Mortgage Program here.

Columbia also has a Bank On initiative to help residents access no-cost checking and savings accounts along with access to in-depth financial education. If youโ€™re paying $10 to $20 or more for your every day banking, look into this program to help you waive these fees. It could save you hundreds of dollars that can go towards your mortgage instead. Bank On is partnered with Start Fresh, which is a free three-part financial education workshop teaching Columbians about budgeting, saving, building your credit and homeownership.

You can read more about Bank On and Start Fresh here.

Fort Mill

Homebuyers from York County and into Lancaster County should look into the Fort Mill Housing Authority Down Payment Assistance Program. It provides down payment assistance of up to 8 percent of your homeโ€™s purchase price for any homes within Fort Mill limits.

Your home must be within purchase price limits ($177,175 in York County, and $172,632 in Lancaster County), and your home must be five years old or less. You must also contribute at least $500 of your own funds towards your homeโ€™s purchase.

In this case, you donโ€™t have to be a first-time homebuyer to qualify. You must, however, complete eight hours of homebuyersโ€™ education coursework.

If youโ€™re interested in this Down Payment Assistance Program you can read more on the Fort Mill Housing Authority website.

Greenville-Spartanburg

Spartanburg, South Carolina skyline

If you have your heart set on moving to the Greenville-Spartanburg area in upstate South Carolina, there are two organizations you should contact.

The Greenville Housing Authority has a slate of programs, including low-income housing tax credits, homeownership assistance, and housing assistance for families, the elderly and disabled individuals. This includes homebuyersโ€™ assistance and education, foreclosure prevention and home rehabilitation for existing homeowners who need help with renovating their home.

You can read more about these initiatives on the Greenville Housing Authority website.

If youโ€™re in Spartanburg, you are in luck; the regionโ€™s housing authority runs a Housing Choice Voucher program to help low-income families shift their existing Housing Choice rental assistance voucher into a payment that goes towards their mortgage. In a nutshell, the program helps families own their own home.

To qualify, you must be a first-time homebuyer who receives a Housing Choice rental voucher to cover a portion of your existing monthly rent.

You must meet minimum income requirements and complete a homebuyersโ€™ education course and counseling programs provided by Spartanburg Housing.

You read more about the Housing Choice Voucher program here.

Myrtle Beach

If youโ€™re a low-income household dreaming of buying a home in Myrtle Beach, look into the regionโ€™s Habitat for Humanity chapter. They build and sell homes โ€“ at no profit โ€“ every year with 30-year interest-free mortgages to make homeownership feasible for families facing financial difficulty.

To qualify, you must meet income requirements that demonstrate youโ€™re priced out of the market. You must not have filed for bankruptcy in the past four or five years, and you must not have any collections, liens or judgments against you. You also must contribute at least $2,000 towards your homeโ€™s closing costs and have a credit score of at least 620.

Habitat for Humanity also requires that you add some sweat equity into your new home. You must volunteer 300 hours into its construction prior to moving into your home.

If youโ€™re interested in this project and youโ€™re living in or moving to the Myrtle Beach area, take a look at the Habitat for Humanity program.

Rock Hill

Homebuyers with their sights set on Rock Hill can turn to the cityโ€™s First-Time Homebuyer Program, which offers down payment and closing cost assistance of up to $5,000. Occasionally, the city also offers larger amounts of financial assistance.

To be eligible, you must meet income limits set by the city โ€“ your income may not exceed 80 percent of the area median income. You must contribute $500 towards your homeโ€™s down payment.

You must also complete a homebuyersโ€™ education course. Donโ€™t worry about where to sign-up for that either โ€“ the city of Rock Hill provides a first-time homebuyersโ€™ education program that comes with counseling.

The $5,000 is provided in the form of a second mortgage thatโ€™s forgiven annually over the course of five years.

Read more about the First-Time Homebuyer Program.

Ready to Buy a Home in South Carolina?

If youโ€™re ready to call South Carolina home, get ready for a comfortable life in the birthplace of sweet tea and barbecue. Youโ€™ll be treated to a variety of housing options in the stateโ€™s real estate market, too.

Whether youโ€™re thinking of settling down in charming Charleston or you prefer the busy, metropolitan life of Columbia, there is no shortage of housing options in the Palmetto State. You may even want to live by the coast and explore neighborhoods in Myrtle Beach.

And wherever you decide to hunker down, there are multiple programs to help you secure your home purchase.

Check out more listings across the state of South Carolina and follow us on social media for more home shopping tips and tricks!

The links on this site were researched by NewHomeSource. This is as cohesive a list as possible. Individual homebuyers should contact entities to fully understand requirements and processes.

Other South Carolina Resources

Best Tiny Home Builders in South Carolina
2022 Guide to Closing Costs in South Carolina
The Top 10 Most Affordable Cities in South Carolina
How to Build a House in South Carolina
Top Master Planned Communities Near Charleston, SC
2021 Best Suburbs Surrounding Charleston
Best Suburbs of Columbia, SC
Top 10 Safest Cities in South Carolina
The 10 Best Places to Retire in South Carolina in 2021
Carmen Chai
Carmen Chai

Carmen Chai is an award-winning Canadian journalist who has lived and reported from major cities such as Vancouver, Toronto, London and Paris. For NewHomeSource, Carmen covers a variety of topics, including insurance, mortgages, and more.

Get our FREE guide on how the home construction process works

By downloading our guide, you can also look forward to receiving our New Home 101 short email series. You may opt out of this subscription any time you wish.

Previous Post: «An extended kitchen with folding doors opened to the patio. Kitchen Lighting Ideas for Modern Homeowners
Next Post: Best Flooring for Your Home Office A blue desk with a laptop and bamboo trinkets and blinds on the window.»

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Search new homes

New Home 101

  • The Basics of Newly Built Homes
  • Why Buy a Newly Built Home
  • Shopping for Your New Home
  • Building Your New Home
  • Designing Your Dream Home
  • Buying Your New Home
  • Moving Into Your New Home
  • New Home Glossary

Footer

Quick Links

  • 55+ Communities
  • Condos & Townhomes
  • Custom Home Buyers
  • First-Time Buyers
  • Luxury Homes
  • Manufactured Homes

Related Sites & Resources

  • Learning Center
  • CasasNuevasAqui.com
  • HomLuv.com
  • Real Estate Professionals
  • NewHomeSource App
  • Trust Builder Ratings & Reviews

Helpful Links

  • About Us
  • Contact Us
  • Builders: List your homes!
  • Unsubscribe
  • Terms of Use
  • Privacy & Cookies
  • Do Not Sell My Personal Information

Copyright © 2023 ยท Builders Digital Experience, LLC. All rights reserved. NewHomeSource.com is a trademark of Builders Digital Experience, LLC and all other marks are either trademarks or registered trademarks of their respective owners.