A Guide For First-Time Home Buyers In South Carolina (SC)

The Palmetto State is a great place to live. It boasts warm weather, natural beauty, great food, lots of history and proximity to the ocean.

And for first-time home buyers in South Carolina, you’ll find plenty of available financial and educational resources to help you achieve homeownership.

Who Qualifies As A First-Time Home Buyer In South Carolina?

Like all other states, South Carolina defines a first-time home buyer as someone who has never owned a home or hasn’t owned one in the past 3 years.

Repeat buyers who haven’t owned a home in the last 3 years can qualify to start over as a “first-time” buyer and take advantage of the grants and resources available for new home buyers.

South Carolina Real Estate At A Glance

Home buyer statistics vary widely across the state, but many South Carolina home buyers generally fit into the following housing market profile:

• Median sale price: $323,821
• Increase in home value over the last 10 years: 84%
• Minimum down payment (3%): $9,715
• Average credit score: 699
• Median household income: $64,115

SC First-Time Home Buyer Programs

There are national, state and local programs to help first-time buyers achieve homeownership. As a South Carolina resident, you may be eligible for assistance at the state level.

SC Housing Home Buyer Program

The South Carolina State Housing Finance and Development Authority (SC Housing) offers a home buyer program to provide financial assistance to low- to moderate-income buyers in targeted counties. The program offers buyers a low, fixed interest rate on their home and limited down payment assistance.

To learn more about the SC Housing Home Buyer Program and see if you qualify, check out the SC Housing program guide.

First-Time Home Buyer Grants And Down Payment Assistance In SC

In addition to the SC Housing Home Buyer Program, South Carolina has several grants and down payment assistance programs available, including:

Palmetto Home Advantage

SC Housing offers the Palmetto Home Advantage program, which provides forgivable down payment assistance of 0%, 3% or 4% of your loan amount, with no monthly payment required.

This program is available to borrowers with a minimum credit score of 640. Unlike some other programs, Palmetto Home Advantage is available to first-time and repeat buyers. It can be used with conventional, Federal Housing Administration (FHA), Department of Veterans Affairs (VA) and U.S. Department of Agriculture (USDA) loans.

For more information, check out SC Housing’s guide to Palmetto Home Advantage.

Forgivable Down Payment Assistance

SC Housing also offers Forgivable Down Payment Assistance (DPA). DPA is a second mortgage with terms of 10 or 20 years.

The loan has a 0% interest rate and requires no monthly payment. The assistance is fully forgiven if the buyer lives in the home for the second mortgage’s entire term, which can be 10 or 20 years.

To qualify, buyers must be eligible for the SC Housing Home Buyer Program. For more information, check the down payment assistance section of the SC Housing Home Buyer Program guide.

SC Housing County First Initiative

SC Housing’s County First Initiative offers up to $8,500 in forgivable down payment assistance to South Carolina borrowers in select counties. To qualify, borrowers must fall within SC Housing’s home price and income limits, live in a qualifying county and must be purchasing a single-family residence.

For more information and a list of eligible counties, check out the County First Initiative page on the SC Housing website.

HUD Home Buyer Assistance Program

Buyers who live in a qualifying county may be able to take advantage of the Department of Housing and Urban Development’s (HUD’s) HOME Investment Partnership program. First-time buyers who meet HUD’s income and home price requirements are eligible for up to $5,000 in down payment and closing cost assistance.

Qualifying counties include Batesburg, Batesburg-Leesville, Cayce, Chapin, Gaston, Gilbert, Irmo, Leesville, Lexington, Oak Grove, Pelion, Pine Ridge, Red Bank, Seven Oaks, South Congaree, Springdale, Summit, Swansea and West Columbia.

You can see an example of the program in action with the Lexington County guide.

Mortgage Credit Certificates

Like other state housing authorities, SC Housing offers mortgage credit certificates (MCCs). MCCs provide qualifying homeowners with a federal income tax credit of up to $2,000. To obtain this credit, homeowners must work with a participating lender and meet the SC Housing income and home price requirements.

Read the Mortgage Credits Certificates page for more information on the SC Mortgage Tax Credit.

First-Time Home Buyer Loan Options In SC

When you purchase a home in South Carolina, you have a variety of loan options to choose from.

• Conventional loans: A conventional loan is the most common loan type used to finance homes. While conventional loans have stricter borrower requirements than government-insured loans, they boast low interest rates and down payments.
• FHA loans: The Federal Housing Administration backs the FHA loan. FHA loans are a good option for first-time and low- to moderate-income home buyers because the loan’s borrower requirements are less stringent.
• VA loans: The Department of Veterans Affairs backs the VA loan. A borrower must be a qualifying active-duty service member, veteran or surviving spouse to get a VA loan. Like FHA loans, VA loans have more lenient borrower requirements and typically don’t require a down payment.
• USDA loans: The U.S. Department of Agriculture backs the USDA loan. The loans are only available to rural buyers and have more lenient loan requirements, including no down payment.

While eligibility requirements will vary by lender, most lenders require borrowers to satisfy their credit score, income and applicable down payment requirements for the purchase of a primary residence.

Rocket Mortgage^® does not offer USDA loans at this time.

South Carolina First-Time Home Buyer FAQs

Get answers to some common questions first-time home buyers in South Carolina have about buying a house.

Is now a good time to buy a house in South Carolina?

Over the past decade, South Carolina has experienced significant population growth in its metropolitan areas due to the relatively low cost of living, growing economy and natural amenities. Consider your personal goals, financial situation and the local market conditions where you want to buy in SC.

What credit score do I need to buy a house in South Carolina?

Most loans and South Carolina assistance programs require a minimum credit score between 620 and 640.

Does South Carolina require first-time home buyer classes?

While South Carolina doesn’t require first-time home buyers to attend home buyer classes, these classes can benefit first-time buyers. They can provide them with the knowledge and information they need to navigate the home buying process.

Are there any first-time home buyer tax credits in South Carolina?

Yes, South Carolina provides tax benefit programs to all homeowners. SC Housing offers mortgage credit certificates (MCCs) to eligible homeowners, allowing them to receive a federal income tax credit for a portion of their annual mortgage interest payment.

The Bottom Line

South Carolina is a great place to live. If you’re planning on buying a home in this state, there are plenty of resources to reduce the upfront and even overall cost. Research the money-saving programs in your preferred areas and consider working with a real estate agent to negotiate the best deal on your dream home.

Ready to get started and buy your first house? Start the application process online today with Rocket Mortgage.