First-Time Home Buyer Programs in South Carolina 2026
South Carolina’s first-time buyer loans come from SC Housing (the SC State Housing Finance and Development Authority), through its participating lenders. The main route is the SC Housing Homebuyer Program. It is a fixed-rate bond loan with a forgivable 0% down payment second, and for 2026/2027 the home price is capped at $450,000. Palmetto Home Advantage drops the first-time rule and offers forgivable help of 0%, 3% or 4% of the loan amount.
SC Housing’s line-up as of September 2026
SC Housing’s program overview lists six homebuyer options. One of them is shut for the year.
| Program | Who it is for | Status on SC Housing’s page |
|---|---|---|
| SC Housing Homebuyer (bond) Program | First-time buyers, county income and price limits; veterans have an exception | “Currently our bond program offers Forgivable Down Payment Assistance” |
| County First Initiative | Buyers in 31 listed rural counties, first-time or move-up | “Funding is available for both first-time or move-up borrowers” |
| Palmetto Home Advantage | First-time, move-up and repeat buyers in all 46 counties | Offered; income limit $140,000 for 2026/2027 |
| Families With Disabilities Homebuyer Program | A borrower or family member with a permanent disability | Offered; household income limits do not apply |
| Housing Choice Voucher Homeownership | Current voucher holders at a participating housing authority | Offered through local PHAs |
| Palmetto Heroes | Teachers, nurses, law enforcement, firefighters, EMTs, veterans, military and others | “2026 Program Closed 04/13/2026” |
Palmetto Heroes ran from March 16 to April 13 this year. SC Housing said that was “the fastest pace at which the program has exhausted its allocated funding.” SC Housing’s program overview now reads “Watch for our 2027 Program in the spring of 2027.”
Who counts as a first-time buyer depends on the county
The Homebuyer Program applies two different ownership tests. Which one you face depends on where the house is. SC Housing’s program handout (revision 10.01.2025) splits the state as follows:
- 12 non-targeted counties: Aiken, Anderson, Charleston, Greenwood, Greenville, Lancaster, Lexington, Oconee, Pickens, Richland, Spartanburg and York. Here the borrower “must be a first-time homebuyer or not have had ownership interest in a principal residence in the three (3) years preceding the date on which the loan is closed.”
- 34 targeted counties: everything else, including Beaufort, Berkeley, Dorchester, Florence, Horry and Sumter. Here the borrower “must not own a home or have any ownership interest in a home at the time their loan is closed”. Past ownership does not matter as long as you own nothing on closing day.
Veterans have a way around the rule. SC Housing’s overview states “there is an exception to the first-time homebuyer requirements available for veterans.”
Two programs skip the test entirely. Palmetto Home Advantage has “no first-time home buyer requirements”. County First is “designed to reach both move-up and first-time homebuyers”, with one condition: you cannot hold “an ownership interest in a principal residence at the time of loan closing”.
The Homebuyer Program: what the first mortgage looks like
The handout lists four first-mortgage types, all 30-year loans with a 640 minimum credit score:
- FHA: 3.5% down, maximum loan-to-value 96.5%.
- Conventional 97%: 3% down, with “Reduced mortgage insurance requirements”.
- USDA RHS: 100% LTV.
- VA: 100% LTV.
SC Housing adds that costs “generally include: 1 percent origination fee, prepaid items and usual and customary closing costs”. Eligible homes are site-built single-family houses, off-frame modular homes, patio homes and townhomes, and FHA- or conventional-approved condos in South Carolina.
The down payment piece is a second mortgage, forgiven only if you stay the full term. SC Housing describes it as “a second lien with 15-year (180 month) term”, at 0% and with no monthly payments. “If the borrower(s) remain in the home for the full term, the lien is forgiven.” It can go toward the down payment, closing costs or prepaid items. SC Housing’s program guide effective August 4, 2026 sets the assistance at $10,000, and its handout says it is offered “based on availability”, so confirm it with your lender when you reserve.
2026/2027 limits for the bond program
SC Housing’s limits chart has applied to reservations “on and after 06.01.2026”. It stays in effect “until 2027 limits are released by HUD”. The home price limit is $450,000 in every county on the chart. Income limits differ by county and household size. Three examples:
| County (type) | 1–2 persons | 3 or more persons |
|---|---|---|
| Charleston (non-targeted) | $117,500 | $135,125 |
| Richland (non-targeted) | $95,800 | $110,170 |
| Berkeley or Dorchester (targeted) | $141,000 | $164,500 |
Any county not named on the chart uses $114,960 / $134,120. The full county chart is linked from the SC Housing income and home price limits page. County First uses the same limits as the Homebuyer Program.
Palmetto Home Advantage: no first-time rule, one statewide income cap
Palmetto Home Advantage fits someone who has owned before, or whose income is over the county bond limit but under the statewide cap. SC Housing offers it with “conventional, FHA, VA and USDA loan options”. There is “no sales price limits”, a 640 minimum score, and an income test that “is not based on total household income and is not dependent on family size”. The 2026/2027 chart sets that cap at $140,000 statewide. The program’s own page still shows an older $135,750.
The down payment help is “0%, 3%, or 4% of the loan amount with no monthly payment”. It is forgivable over a 10-year term, per the limits chart. The conventional version follows Fannie Mae’s HFA Preferred and Freddie Mac’s HFA Advantage guidelines, up to 97% loan-to-value on a one-unit home.
Smaller SC Housing tracks worth checking
Families With Disabilities. This track opens up if you, or a family member, have a permanent disability. You can buy in any county, and “total household income restrictions do not apply”. The price cap is $450,000. Financing is FHA, VA or USDA, with the same 15-year, 0% forgivable second as the bond program.
Housing Choice Voucher Homeownership. This lets a voucher holder use the voucher toward a mortgage. The head of household must have received the voucher “for a minimum of one year in the county where they are planning to buy a home”. The head of household or spouse must have worked full time continuously for at least a year, and the purchaser may not “have held title to any property for a period of three years prior to participation”. SC Housing notes that “Not all Public Housing Agencies participate”.
Education and applying
You do not apply to SC Housing directly. The agency says to contact “one of our Participating Lending Partners located in the county where you are looking to purchase a home”. Its lender finder sorts them by county. SC Housing’s current program guides require homebuyer education “for all SC Housing programs”: at least one borrower must complete it, “even if they have owned a home before”, within the 12 months before closing. SC Housing says “Your lending partner will set this up for you.” If you are still choosing a lender, our Southeast lender roundup covers South Carolina. When you have one, get pre-approved.
The South Carolina down payment assistance guide focuses on the DPA side alone. Closing costs in South Carolina covers what is owed at the table.
South Carolina first-time buyer FAQ
Can I still get a Mortgage Credit Certificate in South Carolina?
No. SC Housing sunset its Mortgage Credit Certificate program: its MCC page said it would “continue to accept reservations through 6:00 PM on June 30, 2026”, and the program no longer appears among the agency’s homebuyer programs. The 2026/2027 limits chart, effective June 1, 2026, also reads “SC Mortgage Credit Certificate Program – (MCC ends June 30)”.
I sold a house in Greenville two years ago. Do I qualify?
Not for the Homebuyer Program in Greenville County, because that county applies the three-year test, unless you are a veteran using SC Housing’s one-time waiver of that requirement. In a targeted county, you qualify as long as you own nothing at closing. Palmetto Home Advantage does not care about prior ownership at all.
Is the SC Housing down payment assistance a grant?
No, it is a 0% second mortgage that is forgiven at the end of its term: 15 years for the bond program and 10 years for Palmetto Home Advantage. For the bond program, SC Housing says you must occupy the home for the full 15 years for the assistance “to be fully forgiven”.
Is Palmetto Heroes coming back?
SC Housing says to watch for a 2027 program in spring 2027. The 2026 round closed on April 13.
Which loan types work with the Homebuyer Program?
FHA, conventional 97%, USDA RHS and VA, all at a 640 minimum score. See our FHA requirements, VA loan guide and FHA vs. conventional comparison.
To size a payment, try the mortgage calculator, the down payment calculator or what can I afford. More on the state is in the South Carolina hub and the national first-time buyer overview. Buyers near the state line can compare North Carolina and Georgia.