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 targeted counties, the buyer must not own a home or have any ownership interest in a home at the time the loan closes.
Veterans and public-service exception: Palmetto Heroes — SC Housing’s program for teachers, first responders, healthcare workers, and military — did not require first-time buyer status. It closed for 2026 on April 13, 2026.
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 training course (required for down payment assistance recipients)
- 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 | $10,000 DPA at 0% with no monthly payments, forgiven after 15 years; county income & price limits apply |
| Palmetto Heroes | Teachers, first responders, healthcare, military | 640 | FHA, VA, USDA, or Conventional | Closed for 2026 (April 13, 2026); previously fixed $10,000 forgivable DPA |
| Palmetto Home Advantage | First-time & repeat buyers | 640 | Conventional, FHA, VA, or USDA | Forgivable DPA of 0%, 3% or 4% of the loan amount; no sales price limits; $135,750 borrower income limit |
| County First Initiative | Buyers in 31 targeted rural counties | 640 | FHA, USDA, or VA | Forgivable DPA and special fixed-rate financing |
Targeted vs. non-targeted counties. SC Housing lists 12 non-targeted counties (Aiken, Anderson, Charleston, Greenville, Greenwood, Lancaster, Lexington, Oconee, Pickens, Richland, Spartanburg and York); every other county is targeted. In non-targeted counties the buyer must not have owned a principal residence in the prior three years; in targeted counties the buyer must not own a home when the loan closes.
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) — targeted; any county not listed | $114,960 | $134,120 | $450,000 |
Berkeley County is a targeted county. Targeted counties have their own income limits, and buyers there must not own a home when the loan closes. 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. SC Housing states borrowers receive $10,000. 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 provided a fixed $10,000 in forgivable down payment assistance for eligible teachers, first responders, healthcare workers, and active military, National Guard, and veterans. It closed for 2026 on April 13, 2026, according to SC Housing.
Palmetto Home Advantage & County First Initiative
Palmetto Home Advantage offers forgivable down payment assistance of 0%, 3% or 4% of the loan amount, with no first-time buyer requirement, no sales price limits and a $135,750 borrower income limit. County First offers forgivable down payment assistance and special fixed-rate financing in 31 targeted rural counties. Confirm current terms 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 down payment assistance recipients before loan approval |
| 4 | Find an SC Housing participating lender | SC Housing loans only available through approved lenders |
| 5 | Get pre-approved | Ask about Homebuyer Program 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 | Plan for an attorney-supervised closing | S.C. Supreme Court: closings should be conducted only under the supervision of attorneys |
| 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 |
