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SC Housing Homebuyer Programs

SC Housing is the state housing finance agency. It does not take applications from the public. Its loans are made through participating lending partners, so which lender you pick decides whether these programs are even on the table.

The programs at a glance

ProgramWho it is forWhat it offers
SC Housing Homebuyer ProgramFirst-time buyers with low to moderate income, with an exception to the first-time rule for veteransFixed rate financing, with or without forgivable down payment assistance; county income and home price limits apply
County First InitiativeFirst-time and move-up buyers in targeted, previously underserved countiesFHA, USDA or VA financing at a reduced rate with forgivable assistance
Palmetto Home AdvantageFirst-time, move-up and repeat buyers in all 46 countiesConventional, FHA, VA and USDA options, a 640 minimum credit score, no sales price limit and a statewide borrower income limit
Palmetto HeroesTeachers, nurses, first responders, veterans and other public service workersA yearly program with its own funding window; the 2026 round closed in April

How the forgivable assistance works

It is a second lien

The help with down payment and closing costs is recorded as a second mortgage behind your main loan, at zero percent interest with no monthly payment.

It forgives with time

On the Homebuyer Program the second lien runs 15 years and is forgiven if you stay in the home for the full term.

Palmetto Home Advantage is sized by loan amount

Its assistance is 0, 3 or 4 percent of the loan amount, also with no monthly payment.

What to ask a lender

Ask first whether the lender is an SC Housing lending partner. Then ask it to price the same purchase both ways: the state program with its assistance, and a standard FHA, VA, USDA or conventional loan without it. Income limits, home price limits and funding change, so confirm current figures on schousing.sc.gov before you count on a number. Assessed value and tax rules that affect the payment are on closing costs and property tax.

Source: SC Housing, Programs for Homebuyers and program pages at schousing.sc.gov, read September 30, 2026. General information, not legal or tax advice.

SC Housing FAQ

Can I apply to SC Housing directly?
No. SC Housing directs buyers to apply through one of its participating lending partners in the county where they are buying.
Do I have to be a first-time buyer to use SC Housing?
Not for every program. The Homebuyer Program targets first-time buyers, with an exception for veterans. Palmetto Home Advantage has no first-time buyer requirement.
Does SC Housing down payment assistance have to be repaid?
It is a forgivable second lien at zero percent interest with no monthly payment. On the Homebuyer Program it is forgiven if the borrower stays in the home for the full 15-year term.

Want one broker to shop the lenders for you?

Home Loans Inc is a South Carolina mortgage broker in North Charleston. One application, priced across many wholesale lenders, with a person who answers the phone.