Guides / Down Payment Assistance / South Carolina

Down Payment Assistance in South Carolina

South Carolina's down payment assistance is run through the state housing finance agency, SC Housing (South Carolina State Housing Finance and Development Authority) — there is no separate distinct DPA program run by a different state agency. As of mid-2026, SC Housing's core statewide offerings are the SC Housing Homebuyer (Bond) Program and Palmetto Home Advantage, both requiring a 640 minimum credit score and homebuyer education, plus two targeted programs: Palmetto Heroes (for teachers, first responders, veterans/military) and the County First Initiative (for underserved counties). Note that the 2026 Palmetto Heroes funding round already closed on April 13, 2026 due to high demand, with the next round expected in spring 2027 — all figures were verified directly from schousing.sc.gov as of July 2026.

Programs

SC Housing Homebuyer Program (Mortgage Revenue Bond Program)
South Carolina State Housing Finance and Development Authority (SC Housing)
Amount: $10,000 in down payment/closing cost assistance, structured as a 0% interest, no-monthly-payment second mortgage. Forgiven if the borrower stays in the home for the full 15-year (180-month) term; otherwise repayable in full upon sale, refinance, or if the home stops being the primary residence.
Type: Forgivable second mortgage (deferred, term-based forgiveness) paired with a below-market fixed-rate first mortgage
Must be a first-time homebuyer (3-year rule) with an exception for qualified veterans; low-to-moderate borrower income limits apply (varies by county, per SC Housing's published 2025/2026 income and home price limit chart); minimum 640 credit score; must complete SC Housing-approved homebuyer education; property must be a primary residence in South Carolina.
Palmetto Home Advantage
South Carolina State Housing Finance and Development Authority (SC Housing)
Amount: Forgivable down payment assistance of 0%, 3%, or 4% of the total loan amount, with no monthly payment on the assistance
Type: Forgivable down payment assistance (percentage-of-loan-amount second lien), available with Conventional, FHA, VA, or USDA first mortgages
No first-time-homebuyer requirement (open to first-time, move-up, and repeat buyers); statewide borrower income limit of $135,750 (based on individual/co-borrower qualifying income, not full household income or family size); minimum 640 credit score; no sales price limit; available in all 46 SC counties; homebuyer education required.
Palmetto Heroes Program
South Carolina State Housing Finance and Development Authority (SC Housing)
Amount: $10,000 in forgivable down payment assistance, paired with a competitive fixed-rate 30-year first mortgage
Type: Forgivable down payment assistance grant/second mortgage for public-service workers, funded on a first-come, first-served basis
Must work in an eligible public service role (teachers, nurses, law enforcement, correctional officers, firefighters, EMTs/paramedics) or be a veteran, active-duty military member, or National Guard member; must meet first-time homebuyer and SC Housing income qualifications; applicant must have an executed sales contract to reserve funds. Note: the 2026 funding round opened March 16, 2026 and closed April 13, 2026 due to high demand — a 2027 round is expected in spring 2027, so this program is not currently accepting new applicants as of mid-2026.
County First Initiative
South Carolina State Housing Finance and Development Authority (SC Housing)
Amount: Up to $8,500 in forgivable down payment assistance, combined with a reduced first-mortgage interest rate
Type: Forgivable down payment assistance targeted at underserved/rural counties, available with FHA, VA, or USDA financing
Borrower must not own a principal residence at closing; targeted to designated underserved South Carolina counties; standard SC Housing credit score (640 minimum) and homebuyer education requirements apply.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Property Taxes in South CarolinaTransfer Tax & Closing Costs in South CarolinaBuyer-Agent Agreements in South CarolinaSeller Disclosure Laws in South CarolinaFind Agents in South CarolinaDown Payment Calculator