Overview
South Carolina's typical home value sits around $304,000, though hot markets like Charleston push past $525,000 while Columbia stays near $222,000 — so where you buy matters as much as how much you earn. The state's housing finance arm, the SC State Housing Finance and Development Authority (known as SC Housing), is your single best resource. The real challenge here isn't sky-high prices statewide; it's saving the down payment in fast-appreciating coastal counties. The good news: SC Housing pairs a below-market fixed-rate first mortgage with forgivable down payment help, and a generous $137,500 statewide income limit means many middle-income buyers qualify.
SC Housing's flagship is the SC Housing Homebuyer Program, which combines a 30-year fixed-rate first mortgage with forgivable down payment assistance. The assistance is structured as a 0%-interest second lien with no monthly payments and a 15-year (180-month) term. Here's the key mechanic: if you stay in the home for the full term, the lien is forgiven entirely — you never repay it. Sell or refinance before 15 years and the balance comes due. It's aimed at first-time buyers (with a veteran exception), requires a minimum 620 credit score for FHA, and uses the $137,500 income cap with no sales-price limit.
State Programs
SC Housing Homebuyer Program
Forgivable second mortgage (0% interest, no monthly payment, 15-year/180-month term)Palmetto Home Advantage
Forgivable second mortgage (0% interest, 10-year forgiveness term)Palmetto Heroes
Forgivable down payment assistance plus below-market fixed-rate first mortgageFederal Programs Available in South Carolina
These nationwide programs can be combined with South Carolina state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in South Carolina
Beyond the flagship, Palmetto Home Advantage is the program for repeat and move-up buyers — no first-time requirement — offering up to 4% of the loan amount as a 10-year forgivable, 0%-interest second. You generally pick one program, not both. The standout special is Palmetto Heroes: SC Housing's 2026 round offered $10,000 in forgivable assistance for teachers, nurses, law enforcement, firefighters, EMTs, paramedics, veterans, and active-duty or National Guard members. It's wildly popular and first-come, first-served — the annual allocation can close within weeks, so watch for each new round's launch.
South Carolina's tax picture changed dramatically in 2026. Under H.4216 (Act 110), signed in 2026, the state collapsed its old graduated brackets into a two-tier system: 1.99% on the first $30,000 of taxable income and 5.21% above that — down from a prior 6%+ top rate, with further cuts triggered by revenue growth toward eventual elimination. Property taxes are among the nation's lowest: an effective rate near 0.5% on owner-occupied homes. On a $304,000 home, that's roughly $1,500 a year. Owner-occupants benefit from a 4% assessment ratio (versus 6% for second homes), and seniors 65+ get a homestead exemption on the first $50,000 of value.
Local layers can stack on top of state help. Cities like Columbia and Charleston, plus nonprofits such as CommunityWorks, run their own down payment assistance funds — amounts vary by jurisdiction and funding cycle, so confirm current figures locally. Military buyers near Joint Base Charleston, Fort Jackson, Shaw Air Force Base, or Marine Corps Recruit Depot Parris Island should ask about Palmetto Heroes (veterans qualify) alongside VA financing. Next steps: complete a HUD-approved homebuyer education course (required for SC Housing DPA), connect with a HUD-approved housing counselor, and apply through an SC Housing participating lender rather than the agency directly.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: June 15, 2026.