Down Payment Assistance in South Carolina

SC Housing, Palmetto Heroes, and lender programs that cover much of your down payment, and who qualifies.

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By the TREAT Team, licensed Charleston REALTORS. Last updated June 2026.

Down payment assistance in South Carolina can cover most or all of your down payment, and for many buyers it is forgivable, meaning you never pay it back if you stay in the home. The state housing agency, SC Housing, runs the main programs, including up to 4 percent through Palmetto Home Advantage and $10,000 for public servants through Palmetto Heroes, and several lenders add their own on top. Here is every program, who qualifies, and how to apply.

This guide is part of our complete Charleston buyer's resources. Start your home search to price your range, or read the full breakdown below.

ProgramAssistanceBest for
SC Housing Homebuyer ProgramForgivable assistance with a fixed-rate loanIncome-eligible buyers, tiered by county and household size
Palmetto Home AdvantageUp to 4% forgivableBuyers under the 2026 income limit of $135,750
Palmetto Heroes$10,000 forgivable, plus a discounted rateTeachers, first responders, healthcare workers, veterans, and military
Lender programs (1% Down, Zero Down)Grant or second mortgage toward your down paymentBuyers who want little or nothing down
800+ local programsGrants or second mortgages from cities and countiesBuyers in areas with their own assistance funds

What Is Down Payment Assistance and How Does It Work?

Down payment assistance, or DPA, is money that helps cover your down payment and sometimes your closing costs. Most South Carolina programs are structured as a forgivable second loan with a term of around 15 years. If you stay in the home for the full term, the assistance is forgiven and you never repay it. Some programs are repaid when you sell or refinance instead. The key point: you do not need a pile of cash saved to buy, and assistance is the lever that gets most first-time buyers in the door.

SC Housing Programs

The state's housing agency, SC Housing, runs the programs most Charleston buyers use, and each pairs assistance with a fixed-rate first mortgage through an approved lender.

  • SC Housing Homebuyer Program. Forgivable down payment assistance with a fixed-rate loan. Eligibility is based on total household income, tiered by county and household size, and most programs require a minimum 640 credit score.
  • Palmetto Home Advantage. Up to 4 percent in forgivable assistance, with a 2026 statewide borrower income limit of $135,750.
  • Palmetto Heroes. $10,000 in forgivable assistance plus a discounted fixed rate for public servants, including teachers, nurses, law enforcement, firefighters, EMTs and paramedics, veterans, active-duty military, and National Guard members. Funds are first come, first served.

Program amounts, income limits, and rates change, so confirm the current figures and your eligibility with SC Housing and a participating lender before you count on a specific number.

Lender and Local Programs

Beyond the state, individual lenders offer their own assistance. Our lending partner Matt Mieras at Guild Mortgage runs a 1% Down program, where you put down 1 percent and the lender contributes more, and a Zero Down program that pairs an FHA loan with a second mortgage to cover the down payment entirely. On top of that, there are more than 800 local government-funded programs nationwide, with grants and second mortgages offered by individual cities and counties. A good local lender knows which ones apply to the specific home you are buying.

Who Qualifies for Down Payment Assistance in South Carolina?

Most programs target first-time buyers, though many define a first-time buyer as anyone who has not owned a home in the past three years, and some are open to repeat buyers. Beyond that, expect income limits tied to your county and household size, a minimum credit score around 640, and a requirement that the home be your primary residence. Many programs also ask you to complete a short homebuyer education course. The only way to know exactly what you qualify for is to run your numbers with a participating lender.

Can You Stack Assistance With a Low Down Payment Loan?

Yes, and this is where the real power is. Down payment assistance layers on top of a low or no down payment loan. Pair SC Housing assistance with an FHA, USDA, or VA loan and your cash to close can drop to very little. See our guides to no and low down payment home loans and, if this is your first purchase, the first-time home buyer guide to see how the pieces fit together.

Assistance can also apply to your closing costs, not just the down payment.

How to Apply

Start with a pre-approval from a participating lender, not the application itself. The lender confirms which programs you qualify for, handles the assistance paperwork alongside your mortgage, and times it all to your closing. This is educational, not financial advice, and the right program depends on your income, credit, and the home, so the first move is a conversation. We send buyers to Matt Mieras at Guild Mortgage, and the TREAT Team can connect you at 843.738.2394.

Watch: Down Payment Assistance Explained

Brett Kelley and lender Matt Mieras break down SC Housing, the Palmetto Heroes program, and how assistance works in plain English. Watch the Ask Charleston episode.

When you are ready, run the math on our mortgage calculator, compare the areas where your budget goes furthest, or read the case for the best realtor in Charleston.

About the author. This guide was written by the TREAT Team, licensed REALTORS serving the Charleston tri-county from 410 Mill St. Suite 104, Mount Pleasant, SC 29464. Call or text 843.738.2394. Learn more about team leader Brett Kelley.

Assistance covers the entry cost. This shows the payoff.

Down payment help answers how you get in the door. It does not answer whether buying beats your current lease, and that answer lives in your specific numbers. The tool below takes your rent, your renewal history, and a price range that fits the programs on this page, and lays out what each path costs you over time.

What Is Renting Really Costing You?

Compare your rent against owning and see what your money could be building.

1. Your Current Rent

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Frequently Asked Questions

It is money that helps cover your down payment and sometimes closing costs, offered by the state agency SC Housing and by individual lenders. Most programs are forgivable, so you never repay them if you stay in the home for the full term.

Usually no. Most South Carolina programs are forgivable over a term of around 15 years, meaning the balance is erased if you stay in the home. Some programs are instead repaid when you sell or refinance.

A South Carolina program offering $10,000 in forgivable down payment assistance plus a discounted fixed rate to public servants, including teachers, first responders, healthcare workers, veterans, and active-duty military. Funds are first come, first served.

Most programs are for income-eligible buyers, with limits tied to your county and household size, a minimum credit score around 640, and the requirement that the home be your primary residence. Many target first-time buyers, often defined as not having owned in the past three years.

Yes. Assistance layers on top of a low or no down payment loan like FHA, USDA, or VA, which can bring your total cash to close down to very little.

Start with a pre-approval from a participating lender. They confirm which programs you qualify for, handle the paperwork with your mortgage, and time it to your closing.