Down Payment Assistance Programs in South Carolina 2026: Grants, Loans & How to Qualify
South Carolina remains one of the more affordable states in the Southeast, but prices have kept climbing. The statewide median sale price reached $351,716 in May 2026, up 1.7% year over year (Redfin). At that price, an FHA loan’s 3.5% minimum down payment is about $12,310. SC Housing, the state housing finance authority, offers forgivable down payment assistance that can cover most or all of that.
Down payment math for South Carolina
| Loan type | Down payment | On the $351,716 median |
|---|---|---|
| FHA (3.5%) | 3.5% | ~$12,310 |
| Conventional (3%) | 3% | ~$10,551 |
| Conventional (5%) | 5% | ~$17,586 |
| VA / USDA | 0% | $0 (if eligible) |
Most South Carolina counties sit at the FHA floor of $541,287 for a one-unit home in 2026. The exception is the Charleston metro — Berkeley, Charleston, and Dorchester counties carry a higher limit of $690,000 to reflect coastal pricing.
SC Housing down payment assistance programs
- SC Housing Homebuyer Program — up to $10,000 in forgivable down payment assistance, structured as a 0% second lien with no monthly payment. It is forgiven over 15 years (180 months) as long as you keep the home. First-time buyers qualify (veterans are exempt from the first-time rule), subject to county income and sales-price limits.
- Palmetto Home Advantage — a forgivable DPA of up to 4% of the loan amount, with no first-time buyer requirement, available in all 46 counties. The statewide income limit is $137,500 and there is no sales-price cap.
- County First Initiative — a reduced interest rate plus forgivable DPA of up to $8,500 for buyers in targeted, underserved counties who do not currently own a principal residence.
- Housing Choice Voucher Homeownership — FHA financing paired with forgivable DPA for current voucher-program participants.
Note on Palmetto Heroes: the 2026 cycle of this public-servant DPA program opened in March and closed on April 13, 2026 after funds were fully committed. SC Housing directs applicants to watch for a 2027 program in spring 2027. It is not available for the rest of 2026.
For the lender list and application steps, see our South Carolina first-time home buyer programs guide.
How to qualify, step by step
- Confirm your household income falls under the county limit (or the $137,500 cap for Palmetto Home Advantage).
- Check your credit — a 620 score covers most SC Housing options.
- Complete an approved homebuyer education course.
- Get pre-approved through an SC Housing participating lender, who pairs the DPA with your FHA loan or conventional loan.
- Plan for closing costs in South Carolina on top of the down payment.
Rural buyers should also review USDA loan requirements, which allow zero down in eligible areas. To size a payment, use our mortgage calculator.
Frequently asked questions
Is South Carolina down payment assistance forgivable?
Yes. The SC Housing Homebuyer Program’s $10,000 is forgiven over 15 years, and Palmetto Home Advantage and County First are also forgivable rather than repaid monthly.
Do I need to be a first-time buyer?
For the SC Housing Homebuyer Program, generally yes (veterans exempt). Palmetto Home Advantage has no first-time requirement.
What is the income limit for SC Housing DPA?
It varies by county for most programs; Palmetto Home Advantage uses a statewide $137,500 limit.
Is Palmetto Heroes still available in 2026?
No — the 2026 round closed on April 13, 2026 after funds were committed. Watch for the 2027 program next spring.
Can I combine assistance with an FHA loan?
Yes. SC Housing DPA is built to layer onto FHA, conventional, VA, or USDA first mortgages.
How do South Carolina programs compare to neighboring states?
Compare North Carolina, Georgia, Tennessee, Florida, and Virginia.