Skip to Main Content

South Carolina first-time homebuyer assistance programs

Jeff Ostrowski Laurie Richards
Written by
Jeff Ostrowski,
Edited by
Laurie Richards
Published on February 25, 2025 | 3 min read

Bankrate is always editorially independent. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . Our is to ensure everything we publish is objective, accurate and trustworthy.

Condominiums on Hilton Head Island, South Carolina
Denise Kappa/Shutterstock

South Carolina offers the charm of coastal living without the overwhelming price tag that scares away buyers in many other oceanside states. Still, as of January 2025, the median home sales price in South Carolina increased by 1.7 percent from the year prior, according to Redfin, but homes are taking longer to sell. The typical home in South Carolina takes 86 days to sell, up 12 percent from the year before.

The South Carolina State Housing Finance and Development Authority — known as SC Housing — has been working to make homes more affordable in the state for the past 50 years. Read on to see how you can get first-time homebuyer assistance in South Carolina.

South Carolina housing market statistics

  • Median sales price, as of Jan. 2025 (Redfin): $378,300
  • Median down payment, as of Dec. 2024 (ATTOM): $327,000
  • Most affordable counties, as of Dec. 2024 (ATTOM): Allendale, Bamberg, Darlington, Lee, Marlboro

South Carolina first-time homebuyer programs

SC Housing Homebuyer Program

SC Housing’s Homebuyer Program includes 30-year conventional, FHA, VA and USDA loans with competitive fixed interest rates and down payment assistance. The program is open to first-time homebuyers and those who have not owned a home in the past three years, or repeat buyers in certain “targeted counties.”

SC Housing Palmetto Home Advantage

SC Housing’s Palmetto Home Advantage program is not solely for first-time homebuyers, but you can use the offering for your first home purchase. If you need to pay mortgage insurance (an expense paid by most homebuyers who can’t put down 20 percent), the program offers a reduced insurance rate, as well.

SC Housing County First

SC Housing’s County First program is designed specifically for buyers in rural areas of the Palmetto State where local conditions make purchasing a home more challenging. It’s available to first-time buyers and move-up buyers in the following counties:

Mortgage credit certificate

SC Housing’s mortgage credit certificate program lets first-time buyers plan ahead to reduce their federal tax obligation for the life of the loan. That means that you can score up to $2,000 in tax benefits each year until you pay off your mortgage.

South Carolina down payment assistance

SC Housing down payment assistance

If you’re obtaining a home loan through SC Housing, you could be eligible for forgivable down payment assistance to pair with the loan. There are no monthly payments, and the loan is forgiven after a certain time in the home. You must complete a homebuyer education course to receive down payment assistance.

CommunityWorks down payment assistance

CommunityWorks helps buyers throughout the Palmetto State come up with upfront funds for down payment and closing costs. The organization works with buyers in certain areas, including areas like Greenville, Spartanburg, Beaufort and Bluffton. Some assistance is in the form of a forgivable loan, while other types may require repayment (typically for buyers with higher incomes).

Other South Carolina first-time homebuyer loans

While you’re considering first-time buyer programs in South Carolina, be sure to explore nationally available first-time buyer loan programs like:

  • FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
  • VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
  • USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
  • Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.

Get started

If you’re ready to get serious about becoming a South Carolina homeowner, follow these tips to make the process as smooth and affordable as possible.

  • Get your credit in the best shape possible: By taking steps to boost your score before applying for a mortgage, you’ll be in the best position to secure the lowest rate possible.
  • Compare South Carolina mortgage rates: Compare current mortgage rates so you can budget for your homebuying journey and find a lender offering the most competitive rates.
  • Read South Carolina mortgage lender reviews: The rate is important, but it’s not the only piece of the puzzle when purchasing a home. Look at what other borrowers are saying about their experience, and pay close attention to fees and closing timelines. And if you’re planning to apply for a first-time buyer program sponsored by SC Housing, make sure to consider an approved lender.
  • Estimate your homeowners insurance costs: The cost to protect your home will vary depending on where you’re buying in South Carolina. Be sure to factor in what this expense will mean for your budget, and be especially mindful of whether you may need to purchase additional flood insurance.
  • Educate yourself about the South Carolina housing market: The more you know about the market, the more confident you can feel when you start touring homes and making an offer.
Written by
Jeff Ostrowski Arrow Right Icon
Writer and Housing Market Analyst
Jeff Ostrowski covers mortgages and the housing market. Before joining Bankrate in 2020, he spent more than 20 years writing about real estate, business, the economy and politics.