Key Takeaways
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South Carolina offers multiple first-time homebuyer programs with affordable mortgage options and down payment assistance.
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SC Housing’s forgivable assistance can significantly reduce upfront costs for qualified buyers.
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Palmetto Home Advantage removes price caps, making it a flexible option for higher-value homes.
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National loans like FHA, VA, and USDA can be combined with state-level assistance for greater savings.
First-time homebuyer programs in South Carolina 2025 are making it easier than ever to become a homeowner in the Palmetto State. Known for its affordability, Southern charm, and coastal lifestyle, South Carolina continues to attract buyers looking for a smart place to invest. If you’re planning to purchase your first home this year, it’s crucial to understand the assistance options available—from low-interest mortgage loans to forgivable down payment grants. This guide breaks down the top programs, current housing market stats, and tips to help you succeed.
South Carolina Housing Market Snapshot (2025)
Recent housing trends show a market in transition. While prices remain elevated compared to earlier years, rising inventory and slower sales have opened the door for buyers.
| Metric | Value |
| Median Home Price (Jan. 2025) | $378,300 (Redfin) |
| Median Down Payment (Dec. 2024) | $327,000 (ATTOM) |
| Average Days on Market | 86 days (12% increase YoY) |
| Most Affordable Counties | Allendale, Bamberg, Darlington, Lee, Marlboro |
Top South Carolina First-Time Homebuyer Programs
1. SC Housing Homebuyer Program
This flagship program offers 30-year fixed-rate mortgages (FHA, VA, USDA, or conventional) with optional forgivable down payment assistance.
| Details | Requirements |
| Loan Types | FHA, VA, USDA, Conventional |
| Credit Score | 640+ |
| Down Payment | 3–3.5% (0% for VA/USDA) |
| Eligibility | First-time buyers or those who haven’t owned a home in 3+ years; repeat buyers in certain counties |
The main advantage of this program is its competitive mortgage rates, along with access to forgivable down payment assistance and reduced private mortgage insurance for conventional borrowers. However, one downside is the higher credit score requirement for FHA loans, which exceeds national minimums and may limit eligibility for some buyers.
2. SC Housing Palmetto Home Advantage
This program expands eligibility to both first-time and repeat buyers and removes the sales price cap.
| Feature | Value |
| Minimum Credit Score | 640 |
| Income Cap | $127,200 |
| Sales Price Limit | None |
| Assistance | Forgivable down payment funds available |
A key benefit of Palmetto Home Advantage is its reduced mortgage insurance costs, which helps lower your monthly payment. It also has broader eligibility guidelines and no maximum home price, making it ideal for higher-value purchases. On the downside, not all mortgage lenders in South Carolina offer this program, so options may be more limited when choosing a lender.
3. SC Housing County First Program
Tailored for rural and underserved counties, County First provides additional forgivable assistance.
| Eligible Counties (Partial List) |
| Abbeville, Bamberg, Chester, Edgefield, Jasper, Marlboro, Williamsburg |
4. Mortgage Credit Certificate (MCC)
This program reduces your federal tax liability by up to $2,000 annually, helping you save over the life of your loan.
Requirements:
- Must live in the home as your primary residence
- First-time buyer (some exceptions apply)
- Income and purchase price limits apply
The main benefit of the MCC is long-term savings on your federal tax bill, which adds up year after year. In addition, many sellers may be willing to cover the cost of the certificate during negotiations. However, there is an upfront fee of $500 plus any lender-imposed charges, which could be a barrier for some buyers.
South Carolina Down Payment Assistance Options
SC Housing DPA
When paired with SC Housing loans, this forgivable assistance covers down payments and may reduce closing costs.
| Program | Forgiveness Period |
| Homebuyer Program | 15 years |
| Palmetto Home Advantage | 15 years |
This assistance makes homeownership far more accessible by reducing the cash needed upfront. But if you sell or refinance before the forgiveness period ends, the remaining balance must be repaid.
CommunityWorks Down Payment Assistance
This nonprofit offers up to $25,000 in assistance in areas like Greenville, Spartanburg, Bluffton, and Beaufort.
The biggest benefit of this program is the generous amount of down payment support, which is available at zero interest and can also be used toward closing costs. On the other hand, buyers must contribute at least $500 to $1,000 of their own funds, and there is a $325 origination fee to participate.
National Loan Options for First-Time Buyers in SC
In addition to state-level assistance, several national programs benefit first-time homebuyers in South Carolina:
| Program | Highlights |
| FHA Loans | 3.5% down, 580+ credit score |
| VA Loans | 0% down for eligible military borrowers |
| USDA Loans | 0% down in rural areas |
| Good Neighbor Next Door | 50% discount for public service employees |
Tips for Buying Your First Home in South Carolina
- Boost your credit score to unlock better rates.
- Compare mortgage offers from SC Housing-approved lenders.
- Research insurance costs, especially in flood-prone zones.
- Stay informed on South Carolina real estate trends to time your purchase well.
Ready to Buy Your First Home in South Carolina?
With strong first-time homebuyer programs in South Carolina in 2025, you don’t have to navigate the market alone. From Charleston to Columbia to smaller rural communities, financial support is available to help you move confidently toward homeownership.
FAQs About South Carolina Homebuyer Programs
No SSN required. Zero impact to credit. Your Information is never sold.
