No and Low Down Payment Home Loans in Charleston, SC
Zero-down USDA and VA, 1% down, and low-down FHA and conventional. Who qualifies and how to start.
By the TREAT Team, licensed Charleston REALTORS. Last updated June 2026.
Yes, you can buy a home in the Charleston tri-county with no money down, or very little down. Two true zero-down loans, USDA in eligible areas and VA for those who have served, require nothing down at all. Low-down options like Guild's 1% Down, FHA at 3.5 percent, and conventional at 3 percent put a home within reach far below the old 20 percent rule. Here is every route, who qualifies, and how to start.
This guide is part of our complete Charleston buyer's resources. Start your home search to see what is in your range, or read on for the full breakdown.
| Loan or program | Down payment | Best for |
|---|---|---|
| USDA loan | 0% | Buyers in USDA-eligible areas like parts of Summerville, Moncks Corner, and outer Berkeley and Dorchester County |
| VA loan | 0% | Eligible veterans, active-duty military, and some surviving spouses |
| Zero Down (FHA plus second mortgage) | $0 | Buyers who do not qualify for USDA or VA but want nothing down |
| 1% Down conventional | 1% | Buyers who want the lowest cash outlay on a conventional loan |
| FHA loan | 3.5% | Lower credit scores or smaller savings |
| Conventional | 3% | Solid credit, wants to drop mortgage insurance later |
Two True Zero Down Loans: USDA and VA
Two government-backed loans let qualified buyers purchase with nothing down. The USDA loan offers 100 percent financing in areas the USDA designates as rural, and a surprising amount of the outer tri-county qualifies, including parts of Summerville, Moncks Corner, and the edges of Berkeley and Dorchester County. It has income limits for the area and is for primary residences only. The VA loan requires no down payment and no monthly mortgage insurance for eligible veterans, active-duty service members, and some surviving spouses, which makes it the strongest option in a military metro like ours. If you are buying near Joint Base Charleston, look first at Hanahan, Goose Creek, and North Charleston.
Low Down Payment Options Under 5 Percent
If USDA and VA are not a fit, several low-down paths still beat the 20 percent myth by a wide margin. An FHA loan needs only 3.5 percent down and allows lower credit scores. Conventional loans can go as low as 3 percent down for many buyers and let you drop mortgage insurance once you build equity. Our lending partner Matt Mieras at Guild Mortgage also offers two programs worth knowing: a Zero Down option that pairs an FHA first mortgage with a second mortgage to cover the down payment, and a 1% Down conventional where you put down 1 percent and Guild contributes more on top. Terms and eligibility on lender-specific programs change, so confirm the current details with Matt directly.
For the full details, see our guides to FHA loans in Charleston and VA loans in Charleston.
The 20 Percent Down Payment Myth
The single most expensive myth in real estate is that you need 20 percent down. You do not. As Matt Mieras puts it in our Ask Charleston episode below, most buyers in the Charleston area purchase with somewhere between zero and 3.5 percent down. The 20 percent figure only matters in one way: putting less down on a conventional loan usually means paying mortgage insurance until you reach enough equity, which is a small monthly cost, not a barrier to entry.
Down Payment Assistance Can Cover Even More
On top of a low-down loan, South Carolina's housing agency offers forgivable down payment assistance through SC Housing, including the Palmetto Heroes program for teachers, first responders, healthcare workers, and veterans. Stacked with a low-down loan, assistance can bring your cash to close down to very little. Confirm current programs and your eligibility with SC Housing and your lender.
See our full guide to down payment assistance in South Carolina for every program and who qualifies.
Which Option Actually Fits You?
The right loan depends on your service history, where you are buying, your credit, and your savings. This is educational, not financial advice, so the real next step is a pre-approval conversation that prices your actual options. Matt Mieras at Guild Mortgage is a 23-year lender who has closed more than 3,500 loans across the Lowcountry, and he is who we send buyers to for a straight read. Call or text the TREAT Team at 843.738.2394 and we will connect you, or get pre-approved and then search Charleston homes in your range.
Watch: Mortgage and Down Payment Programs Explained
Brett Kelley sits down with Matt Mieras to walk through these exact programs, the 20 percent myth, USDA zero-down areas, and how to know if now is the time to buy. Watch the Ask Charleston episode.
Just starting out? Read our first-time home buyer guide. New to the area? Begin with our guide to moving to Charleston, run the numbers on our mortgage calculator, and always check the flood zone before you offer. When you are choosing who represents you, 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.
Zero down changes the math. See by how much.
If a down payment was the wall between you and buying, the programs above may have just removed it. So the question becomes simpler: what does your rent cost you from here versus a payment on your own place? Put your rent and a realistic price range into the calculator below and look at the two paths side by side.
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Frequently Asked Questions
Yes. USDA loans offer zero down in eligible areas across the outer tri-county, and VA loans offer zero down for eligible veterans and active-duty military. Guild's Zero Down program also reaches no money down by pairing an FHA loan with a second mortgage.
As little as 1 percent through a 1% Down conventional program, 3 percent on a standard conventional loan, or 3.5 percent on an FHA loan. Down payment assistance can lower your cash to close even further.
Areas the USDA designates as rural, which includes parts of Summerville, Moncks Corner, and the outer edges of Berkeley and Dorchester County. Always verify the specific address on the USDA eligibility map.
No. Most buyers in the Charleston area purchase with between zero and 3.5 percent down. Putting less than 20 percent down on a conventional loan usually just means paying mortgage insurance until you build enough equity.
It varies by loan. VA is the most lenient, USDA and FHA often start around 540 to 580, conventional generally starts at 620, and Guild's Zero Down starts around 600. A lender can match you to the right program.
Start with a pre-approval from a trusted local lender. We refer buyers to Matt Mieras at Guild Mortgage, and the TREAT Team can connect you at 843.738.2394.