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Why Buy a Home in South Carolina?
South Carolina is known for its beautiful coastlines, friendly communities, and affordable cost of living, making it an attractive destination for first-time homebuyers. The state also offers a variety of loan programs and financial assistance options to help reduce the upfront costs of buying a home, making it an excellent place to plant roots.
Top First-Time Homebuyer Loan Programs in South Carolina for 2025
1. South Carolina Housing Homebuyer Program (SC Housing)
The South Carolina State Housing Finance and Development Authority (SC Housing) offers first-time homebuyers several options for affordable mortgages and down payment assistance:
- First-Time Homebuyer Mortgage: Offers competitive fixed interest rates and reduced mortgage insurance premiums.
- Down Payment Assistance (DPA): Provides up to $10,000 in forgivable loans for down payment and closing costs.
- Eligibility Requirements: Minimum credit score of 620, income limits based on household size, and the property must be a primary residence.
- How to Apply: Work with an SC Housing-approved lender to apply for these benefits.
Learn more about your options for a 30-Year Fixed Mortgage or 15-Year Fixed Mortgage.
2. FHA Loans
For those who need a lower down payment option, FHA loans are a popular choice:
- Down Payment: As low as 3.5% for qualified buyers.
- Credit Score: Minimum 580 (with 3.5% down) or 500-579 (with 10% down).
- Other Benefits: Flexible credit requirements, higher debt-to-income limits, and lower upfront costs.
Explore the benefits of an FHA Loan and use our FHA Loan Calculator to estimate your monthly payments.
3. USDA Loans
For buyers looking to purchase in rural areas, USDA loans offer zero-down financing:
- Zero Down Payment: 100% financing available.
- Low Interest Rates: Competitive fixed rates.
- Eligibility: Income limits and property location requirements apply.
Learn more about USDA Loans and see if you qualify.
4. VA Loans
Veterans and active-duty military members can take advantage of VA loans, which offer significant benefits:
- Zero Down Payment: No down payment required.
- No PMI: Save on private mortgage insurance costs.
- Lower Interest Rates: Competitive rates for qualified veterans.
Find out if a VA Loan is right for you.
Down Payment Assistance Programs
In addition to these mortgage options, many first-time buyers can benefit from down payment assistance programs:
- Palmetto Heroes Program: Supports teachers, law enforcement officers, firefighters, and other community heroes with special down payment assistance.
- NeighborhoodLIFT Program: Provides grants for down payment and closing costs in select areas.
FAQs
What credit score do I need to buy a home in South Carolina?
It depends on the loan type. FHA loans typically require 580+, conventional loans often require 620+, and VA/USDA loans have flexible credit standards.
Are there first-time homebuyer grants in South Carolina?
Yes, the SC Housing program offers forgivable loans for down payments and closing costs.
Can I get a zero-down mortgage in South Carolina?
Yes, USDA and VA loans offer 100% financing for eligible buyers.
Read Next
Take the Next Step
Ready to make your move? Start by checking your eligibility for a first-time homebuyer program or exploring your mortgage options. Use our Affordability Calculator to see how much home you can afford and find the perfect mortgage for your needs.
Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
