Down Payment Assistance Programs in South Carolina

South Carolina Down Payment Assistance Programs

The biggest hurdle for most homebuyers isn't the monthly payment — it's coming up with the cash for the down payment and closing costs. The good news? South Carolina has some of the best down payment assistance programs in the country, and many Charleston-area buyers qualify without even knowing it.

At Mint Group Mortgage, we help borrowers stack these programs to minimize out-of-pocket costs. Some of our clients have bought homes with less than $1,000 out of pocket.

SC Housing Programs

The South Carolina State Housing Finance and Development Authority (SC Housing) offers several programs to help buyers with down payment and closing costs:

Palmetto Home Advantage

• Assistance: Up to 4% of the loan amount as a forgivable second mortgage

• Forgiveness: Forgiven after 10 years of living in the home (if you sell or refinance before 10 years, you may need to repay a prorated amount)

• Loan types: Works with FHA, VA, USDA, and conventional first mortgages

• Income limits: Vary by county — many moderate-income borrowers qualify

• Credit score: Minimum 640

• First-time buyer required? No — available to first-time and repeat buyers

• Homebuyer education: Required (can be completed online)

Example: On a $300,000 home, Palmetto Home Advantage could provide up to $12,000 toward your down payment and closing costs.

Palmetto Heroes

• What it is: A special below-market interest rate plus down payment assistance for community heroes

• Who qualifies: Teachers, law enforcement officers, firefighters, EMS personnel, nurses, and veterans

• Assistance: Below-market rate + forgivable down payment assistance

• Credit score: Minimum 640

• Availability: Limited funding — first come, first served each year

If you're a teacher, first responder, nurse, or veteran, always ask about Palmetto Heroes first. The savings can be significant.

SC Housing Mortgage Tax Credit (MCC)

• What it is: A federal tax credit that puts money back in your pocket every year

• How it works: You receive a tax credit equal to a percentage of the mortgage interest you pay, reducing your federal tax liability dollar-for-dollar

• Benefit: Can save you $1,000–$2,000+ per year in taxes

• Can be combined with other SC Housing programs

• First-time buyer required? Generally yes, with exceptions for targeted areas and veterans

Other Down Payment Assistance Options

Employer-Assisted Housing Programs

Some employers offer down payment assistance as an employee benefit. Check with your HR department — military installations, hospitals, school districts, and large employers sometimes offer these programs.

Gift Funds from Family

Most loan programs allow your down payment to come from a gift:

• FHA: 100% of down payment can be a gift from family

• Conventional: Gift funds allowed with some restrictions depending on down payment percentage

• VA: Gift funds allowed

• USDA: Gift funds allowed

A simple gift letter is required — we'll provide the template.

Seller Concessions

The seller can pay some or all of your closing costs as part of the purchase negotiation:

• FHA: Seller can pay up to 6% of the purchase price toward your closing costs

• Conventional: 3–9% depending on down payment

• VA: Seller can pay up to 4% plus all normal closing costs

• USDA: Seller can pay up to 6%

Strategy: In a balanced or buyer's market, we often structure offers to include seller concessions. This can dramatically reduce your cash-to-close.

Who Qualifies for Down Payment Assistance?

Requirements vary by program, but generally:

• Income limits — Most programs have household income limits that vary by county and family size. Many moderate-income households qualify — you might be surprised.

• Credit score — Most SC Housing programs require a minimum 640 credit score

• Homebuyer education — A short online course (usually 4–6 hours) is typically required

• Primary residence — The home must be your primary residence (no investment properties)

• Property limits — Maximum purchase price limits apply and vary by county

Don't assume you make too much. Income limits are often higher than people expect. The only way to know is to check — and we can tell you in minutes.

How to Stack Programs for Maximum Savings

Here's a real-world example of how a Charleston buyer might minimize their cash-to-close:

This is a real scenario we've helped buyers achieve. The math works when you know which programs to combine.