Mortgage Industry Analyst & Contributing Writer · NMLS #2103487, MBA
South Carolina First-Time Home Buyer Programs 2026: SC Housing Guide
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SC Housing Programs Overview
SC Housing (South Carolina State Housing Finance and Development Authority) is the state housing finance agency, offering first mortgages and down payment assistance through approved lenders statewide.
The flagship Palmetto Home Advantage is open to both first-time and repeat buyers — a major advantage over most state programs. Palmetto Heroes offers enhanced terms for public service professionals.
| Program | Type | Max Benefit | Key Requirement |
|---|---|---|---|
| Palmetto Home Advantage | First mortgage + DPA | Up to $15,000 DPA | 640 credit, income limits |
| Palmetto Heroes | First mortgage + DPA | Enhanced terms | Teachers, nurses, first responders, military |
| County First Initiative | Enhanced DPA | Higher assistance | Rural/underserved counties |
| SC Housing MCC | Tax credit | Up to $2,000/year | First-time buyers only |
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Palmetto Home Advantage: Mortgage + Forgivable DPA
Palmetto Home Advantage pairs a 30-year fixed-rate FHA, VA, USDA, or conventional first mortgage with down payment assistance of up to $15,000. The program is open to first-time AND repeat buyers — no first-time requirement.
The DPA is a 0% interest second mortgage forgiven over 10-15 years depending on the option you choose. Stay through the forgiveness period and you owe nothing. Sell or refinance earlier and you repay the unforgiven balance.
On a $300,000 South Carolina home, $15,000 covers the entire 3.5% FHA down payment ($10,500) plus $4,500 toward closing costs. Minimum credit score is 640. See our FHA vs conventional guide for loan-type help.
- 30-year fixed-rate FHA, VA, USDA, or conventional loans
- DPA up to $15,000 — forgivable over 10-15 years
- No first-time buyer requirement
- Minimum 640 credit score
- Income limits ~$100,000-$130,000 by county
- 0% interest second, no monthly payments
Palmetto Heroes: Enhanced Terms for Public Service
Palmetto Heroes offers enhanced mortgage terms for South Carolina public service professionals: teachers and school employees, nurses and healthcare workers, law enforcement, firefighters, EMTs, paramedics, corrections officers, active military, and veterans.
The program typically offers a lower first-mortgage rate than the standard Palmetto Home Advantage plus the same forgivable DPA — a meaningful benefit for those who serve.
If you work in any qualifying profession, ask your SC Housing lender specifically about Palmetto Heroes — the rate discount adds up to thousands over the loan term.
- For teachers, nurses, healthcare workers, first responders, military
- Lower first-mortgage rate than standard Palmetto Home Advantage
- Same forgivable DPA up to $15,000
- Broad eligibility — most public employees qualify
- Same 640 credit and income requirements
- Ask your lender specifically about Palmetto Heroes
County First Initiative & MCC
The County First initiative provides enhanced assistance for buyers purchasing in rural and underserved South Carolina counties — higher DPA amounts or better terms in designated areas.
The SC Housing Mortgage Credit Certificate (MCC) provides a federal tax credit of up to $2,000 per year for the life of the loan — worth up to $60,000 over 30 years. It requires first-time buyer status.
The MCC can be combined with Palmetto Home Advantage. Ask your lender about adding it — the upfront fee is small compared to the lifetime benefit.
- County First: enhanced assistance in rural/underserved counties
- MCC: up to $2,000/year federal tax credit
- MCC worth up to $60,000 over 30 years
- MCC requires first-time buyer status
- Both can combine with Palmetto Home Advantage
- Ask your lender about County First eligibility by address
SC Housing Income and Purchase Price Limits 2026
SC Housing income limits vary by county and household size. Here are the approximate 2026 limits for major South Carolina counties — verify at SCHousing.com.
- Charleston and Charlotte-metro counties have the highest limits
- Income limits based on total household income
- Purchase price limits apply to total price
- Verify current limits at SCHousing.com
| County | Income Limit (1-2 persons) | Income Limit (3+ persons) | Purchase Price Limit |
|---|---|---|---|
| Charleston | ~$120,000 | ~$138,000 | ~$500,000 |
| Greenville | ~$110,000 | ~$126,500 | ~$475,000 |
| Richland (Columbia) | ~$105,000 | ~$120,750 | ~$460,000 |
| Horry (Myrtle Beach) | ~$105,000 | ~$120,750 | ~$460,000 |
| Lexington | ~$105,000 | ~$120,750 | ~$460,000 |
| Spartanburg | ~$100,000 | ~$115,000 | ~$450,000 |
| York (Charlotte metro) | ~$115,000 | ~$132,250 | ~$480,000 |
| Beaufort (Hilton Head) | ~$115,000 | ~$132,250 | ~$480,000 |
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Palmetto Home Advantage does not require first-time buyer status — a major advantage. The MCC does require first-time buyer status (no ownership in past 3 years).
Credit score: minimum 640 for all SC Housing programs. DTI: maximum 45% for conventional, up to 50% for FHA with automated approval. See our DTI ratio guide for strategies.
Occupancy: primary residence only. Homebuyer education: required for first-time buyers — SC Housing-approved courses are available online.
- No first-time buyer requirement for Palmetto Home Advantage
- MCC requires first-time buyer status
- Credit score: 640+ for all programs
- DTI: 45% conventional, up to 50% FHA
- Primary residence only
- Complete SC Housing-approved homebuyer education
- Must use an SC Housing-approved lender
How to Apply for SC Housing Programs
SC Housing programs are accessed through approved lenders — you cannot apply directly to SC Housing.
Step 1: Find an approved lender at SCHousing.com. Step 2: Get pre-approved — the lender verifies credit, income, and program eligibility including Heroes status. Step 3: Complete homebuyer education if required. Step 4: Find a home within the purchase price limit. Step 5: Close — DPA funds are delivered at settlement.
- Step 1: Find an SC Housing-approved lender at SCHousing.com
- Step 2: Get pre-approved and confirm Heroes eligibility
- Step 3: Complete homebuyer education if required
- Step 4: Shop within county purchase price limits
- Step 5: Close — DPA funds delivered at settlement
- Tip: Ask about Palmetto Heroes if you work in public service
Local South Carolina DPA Programs
Several South Carolina cities offer additional assistance.
- Charleston and Columbia have the largest local programs
- Local programs may stack with SC Housing — ask your lender
- City programs typically have lower income limits
- Funding cycles open and close — check availability early
| Program | Area | Assistance | Key Details |
|---|---|---|---|
| Charleston HAP | Charleston | Up to $15,000 | Deferred, income limits |
| Columbia HAP | Columbia | Up to $10,000 | Forgivable after 5-10 years |
| Greenville HAP | Greenville | Up to $10,000 | Deferred 0% loan |
| North Charleston HAP | North Charleston | Up to $10,000 | Forgivable grant |
| Myrtle Beach HAP | Myrtle Beach | Up to $7,500 | Deferred, income-restricted |
| Spartanburg HAP | Spartanburg | Up to $7,500 | Deferred 0% loan |
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Updated November 1, 2026
| Lender | Rate | Action |
|---|---|---|
Veterans United | 5.500% | Check Rate |
Navy Federal CU | 5.500% | Check Rate |
Better.com | 5.625% | Check Rate |
New American Funding | 5.625% | Check Rate |
Rocket Mortgage | 5.750% | Check Rate |
CrossCountry Mortgage | 5.750% | Check Rate |
Rates shown are illustrative. Actual rates vary by credit score, location, and loan details.
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Mortgage Industry Analyst & Contributing Writer
MBA and NMLS #2103487. Former loan officer at Bank of America and regional sales manager. Expert in USDA, FHA 203k, and DPA programs.
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