Overview
South Carolina's housing market offers opportunities for first-time buyers, with a median home price of approximately $280,000. The SC Housing Finance and Development Authority (SC Housing) provides the primary state-level assistance through mortgage programs and down payment assistance for qualifying buyers.
The SC Housing Homebuyer Program is a sc housing finance and development authority's key offering for first-time buyers, providing below-market rate 30-year fixed mortgage with up to 4% of loan amount in forgivable dpa. This program is designed to reduce the upfront cost barrier that prevents many qualified buyers from purchasing a home. Buyers must complete a HUD-approved homebuyer education course and work with an approved lender.
State Programs
SC Housing Homebuyer Program
Below-market rate mortgage with DPAPalmetto Heroes Program
Below-market rate mortgage for public servantsFederal 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
The Palmetto Heroes Program extends additional support through below-market rate mortgage for teachers, law enforcement, firefighters, ems, veterans, and nurses. South Carolina has a graduated income tax from 0% to 6.40%. Property taxes average about 0.55%, among the lowest nationally. The Palmetto Heroes program specifically benefits public servants.
Federal programs complement state offerings in South Carolina. FHA loans require just 3.5% down with flexible credit requirements. VA loans provide zero-down-payment financing for veterans and active-duty military, particularly relevant near Joint Base Charleston, Fort Jackson, Shaw Air Force Base. USDA loans offer zero-down-payment options in eligible rural areas, which cover significant portions of South Carolina.
Prospective buyers should compare all available options, as combining state and federal programs can dramatically reduce out-of-pocket costs. Working with a HUD-approved housing counselor can help navigate the application process and identify the best program combination for your situation.
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: March 30, 2026.