South Carolina First Time Home Buyer Guide 2026
SC Housing programs, down payment assistance, income limits by county, and a step-by-step path to buying your first home in South Carolina.
Who Qualifies as a First-Time Home Buyer in South Carolina?
For most SC Housing programs, a “first-time home buyer” is defined as anyone who has not owned a primary residence in the past three years. Repeat buyers who previously owned but haven’t owned a home in three or more years may still qualify. In SC Housing’s designated “targeted” counties, the first-time buyer requirement is waived entirely for all buyers.
Veterans and public-service exception: Palmetto Heroes — SC Housing’s program for teachers, first responders, healthcare workers, and military — does not require first-time buyer status. Eligible repeat buyers in these professions can access the $10,000 forgivable down payment assistance regardless of prior homeownership.
SC Housing Loan Programs
South Carolina State Housing Finance and Development Authority (SC Housing) is South Carolina’s state housing finance agency. It offers below-market mortgage rates paired with down payment assistance, exclusively through approved participating lenders. All SC Housing loans require:
- Completion of a homebuyer education course
- Owner-occupied primary residence only
- Household income and purchase price within county-specific limits
- Must finance through an SC Housing participating lender
| Program | Who It’s For | Min Credit Score | Loan Type | Key Feature |
|---|---|---|---|---|
| SC Housing Homebuyer Program | First-time & repeat buyers | 640 | FHA, VA, USDA, or Conventional | 0% interest, no-payment 15-year forgivable DPA second mortgage; county income & price limits apply |
| Palmetto Heroes | Teachers, first responders, healthcare, military | 640 | FHA, VA, USDA, or Conventional | Fixed $10,000 forgivable DPA |
| Palmetto Home Advantage | First-time & repeat buyers | 640 | Conventional | Forgivable DPA options; alternative to the Homebuyer Program |
| County First Initiative | Buyers in participating counties | 640 | FHA, VA, USDA, or Conventional | Forgivable DPA layered with county-level partnerships |
Targeted vs. non-targeted counties. SC Housing designates certain counties — including Berkeley — as “targeted,” which raises income limits substantially and waives the first-time buyer requirement. Most South Carolina counties, including Richland, Lexington, Charleston, Greenville, Spartanburg, and York, are non-targeted with standard limits.
SC Housing Income & Purchase Price Limits by County
SC Housing Homebuyer Program limits vary by county and household size. Figures below are sourced from SC Housing’s official 2026/2027 Income and Home Price Limits, effective for reservations made after June 1, 2026. The statewide purchase price limit is a flat $450,000 in every county.
| County | Max Income (1–2 person) | Max Income (3+ person) | Max Purchase Price |
|---|---|---|---|
| Richland (Columbia) | $95,800 | $110,170 | $450,000 |
| Lexington (Columbia metro) | $95,800 | $110,170 | $450,000 |
| Charleston | $117,500 | $135,125 | $450,000 |
| Berkeley (targeted county) | $141,000 | $164,500 | $450,000 |
| Greenville | $106,400 | $122,360 | $450,000 |
| Spartanburg | $95,800 | $110,170 | $450,000 |
| York (Rock Hill) | $117,400 | $135,010 | $450,000 |
| Horry (Myrtle Beach) | Not separately published — confirm current non-targeted county limit with an SC Housing participating lender | $450,000 | |
Berkeley County’s higher limits reflect its “targeted” designation. Targeted counties receive substantially higher income limits and no first-time buyer restriction, as an incentive for homeownership in those areas. Always verify current limits directly with an SC Housing participating lender, as they are updated periodically.
Down Payment Assistance Options in South Carolina
SC Housing Homebuyer Program DPA
SC Housing’s primary DPA is a second mortgage with a 0% interest rate and no monthly payments, structured as a 15-year forgivable loan. The exact assistance amount is allocated by SC Housing based on fund availability at the time of reservation — it is not a fixed dollar figure or percentage. Funds may be used toward the down payment, closing costs, and/or prepaid items. The borrower must occupy the home for the full 15-year term for the assistance to be fully forgiven.
Palmetto Heroes
Palmetto Heroes provides a fixed $10,000 in forgivable down payment assistance for eligible teachers, first responders, healthcare workers, and active military, National Guard, and veterans. This is the only SC Housing program with a published flat dollar figure.
Palmetto Home Advantage & County First Initiative
These programs offer additional forgivable down payment assistance options for buyers who don’t fit the Homebuyer Program or Palmetto Heroes criteria, including those in specific participating counties. Exact terms vary and should be confirmed with a participating lender.
Programs generally aren’t stacked. Unlike some states where multiple down payment assistance programs can be layered, SC Housing borrowers typically select one DPA program per loan. Ask your participating lender which single program offers the best terms for your situation.
Step-by-Step: Buying Your First Home in South Carolina
| Step | What to Do | Notes |
|---|---|---|
| 1 | Check your credit score | 640+ for most SC Housing programs |
| 2 | Calculate your household income against county limits | Limits vary significantly by county — see table above |
| 3 | Complete homebuyer education | Required for SC Housing loans before closing |
| 4 | Find an SC Housing participating lender | SC Housing loans only available through approved lenders |
| 5 | Get pre-approved | Ask about Homebuyer Program, Palmetto Heroes, and Palmetto Home Advantage eligibility |
| 6 | Confirm your purchase price is under $450,000 | Statewide SC Housing purchase price cap |
| 7 | Make an offer with pre-approval letter | South Carolina sellers generally expect a full pre-approval |
| 8 | Retain a real estate attorney | Required by South Carolina law for closing |
| 9 | Open escrow and complete inspections | Don’t waive the inspection contingency |
| 10 | Close and fund | Bring certified funds for closing costs minus any DPA received |
