If you’re buying a home in South Carolina and need help with the down payment, the largest source of assistance is SC Housing, the state’s housing finance agency, which runs three statewide forgivable-loan programs through participating mortgage lenders. Several cities and counties operate their own smaller funds, and national programs like the Chenoa Fund fill gaps for buyers who don’t fit the state’s rules. Most down payment assistance in SC is structured as a forgivable second mortgage with no monthly payment, meaning you owe nothing as long as you stay in the home for the required number of years.
You don’t apply to SC Housing directly. You apply with an approved lender, who determines which program fits and processes the first mortgage and the assistance together.
Palmetto Home Advantage
Palmetto Home Advantage is the broadest and least restrictive statewide option. It provides forgivable down payment assistance equal to 3% or 4% of the loan amount, with no monthly payments.1SC Housing. Palmetto Home Advantage
You do not have to be a first-time homebuyer. First-time, move-up, and repeat buyers all qualify, and the program works in all 46 South Carolina counties with no sales price cap. Eligible loan types include Conventional, FHA, VA, and USDA mortgages.
To qualify, you need a credit score of at least 640, and your individual borrower income (not household income) must be at or below $140,000 for the current cycle.2SC Housing. 2026-2027 Income and Home Price Limits For most buyers who don’t fit a more targeted program, this is the one.
SC Housing Homebuyer Program (Bond Program)
The SC Housing Homebuyer Program is the agency’s bond-funded mortgage, and the assistance comes as a forgivable second lien at 0% interest with no monthly payments. Stay in the home for the full 15-year term and the lien is wiped out entirely.3SC Housing. SC Housing Homebuyer Program
Forgiveness is all-or-nothing. Sell the home, refinance, or stop using it as your primary residence before 15 years are up, and the entire assistance balance comes due in full. There is no pro-rata reduction. SC Housing also will not subordinate the DPA lien, so a standard refinance triggers repayment. If you move out but keep the property, you must notify SC Housing and repay the balance within 30 days.4SC Housing. SC Housing Homebuyer Program Manual
Income Limits and Home Price Cap
The bond program uses county-specific income caps that vary by household size and a statewide home price ceiling of $450,000.2SC Housing. 2026-2027 Income and Home Price Limits Caps run from about $95,800 in Richland County (1–2 persons, non-targeted) up to $164,500 in Dorchester County (3+ persons, targeted). Counties not individually listed default to $114,960 for 1–2 persons and $134,120 for 3+ persons. SC Housing publishes current figures on its income and home price limits page.5SC Housing. Income and Home Price Limits
First-Time Buyer Rules
Whether you count as a first-time buyer under this program depends on where you’re buying. In 12 non-targeted counties (Aiken, Anderson, Charleston, Greenville, Greenwood, Lancaster, Lexington, Oconee, Pickens, Richland, Spartanburg, and York), you cannot have had an ownership interest in a principal residence during the three years before closing. In all other (targeted) counties, you simply can’t own a home at the time of closing, even if you owned one more recently.6SC Housing. SC Homebuyer Program Guide
Two exceptions waive the first-time requirement entirely. Veterans get a one-time waiver if they haven’t used it before. And households with a member who has a permanent 100% disability (as defined by SSI, SSDI, or employer or insurer long-term disability) are also exempt.
Other requirements: a 640 minimum credit score, completion of a homebuyer education course through a HUD-approved counseling agency within 12 months of closing, and primary-residence occupancy. Eligible properties are single-family homes, attached or detached PUDs, fee-simple condos, and off-frame modular homes, with a five-acre maximum. Non-occupying co-borrowers and cosigners are not allowed.
County First Initiative
If you’re buying in a rural county, the County First Initiative provides $8,000 in forgivable down payment assistance along with a low fixed rate on a 30-year mortgage.7National Council of State Housing Agencies. SC Housing County First Initiative: Closing the Gap in Rural Homeownership Eligible loan types are FHA, USDA, and VA.
The initiative covers 29 counties, including Abbeville, Allendale, Bamberg, Barnwell, Beaufort, Cherokee, Chester, Chesterfield, Clarendon, Colleton, Darlington, Dillon, Georgetown, Hampton, Jasper, Kershaw, Laurens, Marion, Marlboro, Newberry, Orangeburg, Union, and Williamsburg, among others.8SC Housing. County First Initiative Both first-time and move-up buyers may apply, though you can’t have an ownership interest in a principal residence at closing. Income and home price limits follow the bond program standards.
City and County Programs
Several local governments fund their own down payment assistance, usually layered on top of a conventional, FHA, or SC Housing mortgage. These programs tend to be smaller, geographically limited, and sometimes paused when funding runs out.
Richland County
The Richland County Homeownership Assistance Program offers a deferred, forgivable loan of up to $24,500 for first-time buyers in unincorporated Richland County. The loan is forgiven after five years of owner-occupancy; move out or sell sooner and a prorated portion must be repaid. The property must be a single-family detached home built after 1978, and maximum prices are $228,000 for existing homes and $273,000 for new construction. You must attend a Homeownership Assistance Workshop before you can even get an application.9Richland County. Homeownership Assistance
Spartanburg
The City of Spartanburg, with CommunityWorks, offers up to $20,000 in down payment and closing cost help as a non-amortizing, 0% interest loan forgivable over 20 years. You must be a first-time buyer at or below 80% of area median income, buying inside city limits.10City of Spartanburg. Homeowner Resources11CommunityWorks Carolina. Down Payment Assistance
Greenville County
Greenville County runs its program through CommunityWorks: up to $20,000 forgivable for households at or below 80% AMI, and a $10,000 non-forgivable loan for households between 80% and 120% AMI. The property must be in Greenville County but outside Greenville city limits. As of mid-2026 the program was out of funds with a waitlist, and new funding was expected later in the year.11CommunityWorks Carolina. Down Payment Assistance
Rock Hill
The Housing Development Corporation of Rock Hill offers up to $5,000 as a zero-interest, deferred, forgivable loan, cleared if you occupy the home as your primary residence for up to 20 years. You must be a first-time buyer (no ownership in the past three years), earn below 80% AMI, have a credit score of at least 620, and buy within city limits. Homebuyer education and one-on-one counseling are both required before applying.12Housing Development Corporation of Rock Hill. First Time Home Buyer
Charleston
Charleston’s Homeownership Initiative serves households earning between 50% and 120% of area median income. You can’t have owned a home in the past three years and must qualify for a first mortgage. The city records a 90-year restrictive covenant on initiative properties to keep them affordable long-term. As of mid-2026 the department was accepting applications for the Juniper Townhomes in West Ashley on a first-come, first-qualified basis.13City of Charleston. Homeownership Initiative
Columbia
The City of Columbia’s Housing Loan Program was temporarily paused in mid-2026 and was not scheduled to accept new applications again until October 1, 2026.14City of Columbia Community Development. City Lender Programs Separately, current Section 8 voucher holders can use the Columbia Housing Authority’s Housing Choice Voucher Homeownership Program to put their subsidy toward buying a home.15Columbia Housing Authority. Buy a House Through Columbia Housing
Chenoa Fund
If you don’t fit the state programs, the Chenoa Fund is a national option available in South Carolina. It is not a bond program, has no income limits, and no first-time buyer requirement. The fund provides 3.5% or 5% of the purchase price to cover the down payment on an FHA loan.16Chenoa Fund. Chenoa Fund Down Payment Assistance
Two structures are offered. The forgivable “soft second” is a 30-year, 0% interest loan with no monthly payments; the 3.5% version is forgiven after 36 consecutive on-time payments on the first mortgage, and the 5% version requires 120 on-time payments. A late payment resets the clock, though the loan is forgiven at the end of the 30-year term regardless. The repayable option is a separate second mortgage with a 10- or 30-year term at interest rates ranging from 0% up to rates tied to the first mortgage.17Chenoa Fund. Program Term Sheet The minimum credit score is 620 for DPA Edge products and 640 for Rate Advantage and conventional options.
Pairing Assistance With a USDA Loan
Much of rural South Carolina, including most of the County First counties, sits in USDA-eligible territory. USDA’s Section 502 program offers mortgages with no down payment required, so you can pair a zero-down USDA loan with SC Housing’s forgivable assistance to cover closing costs and prepaid items.18SC Housing. Programs for Homebuyers
USDA Direct Loans serve low- and very-low-income borrowers, with interest rates as low as 1% after payment assistance subsidies, and terms up to 33 years (or 38 for very-low-income applicants). You can check whether a property is in a USDA-eligible area through the USDA’s online eligibility tool.19USDA Rural Development. Single Family Housing Direct Home Loans USDA Guaranteed Loans, originated by private lenders with a USDA guarantee, work with both Palmetto Home Advantage and the SC Housing Homebuyer Program.
How To Apply
Start with a lender. SC Housing does not take applications from borrowers directly, so you work with one of its participating lending partners, who originates the first mortgage and the down payment assistance together.18SC Housing. Programs for Homebuyers SC Housing’s “Find a Lender” directory is searchable by county.
If your program requires homebuyer education, acceptable courses include Fannie Mae’s HomeView, Freddie Mac’s CreditSmart, or any course from a HUD-approved counseling agency. South Carolina has more than a dozen HUD-approved agencies, including the Charleston Trident Urban League, Origin SC in North Charleston, the Greenville County Human Relations Commission, and NACA offices in Columbia and North Charleston.20U.S. Department of Housing and Urban Development. HUD-Approved Housing Counseling Agencies in South Carolina HUD counseling is typically free or very low cost.21Consumer Financial Protection Bureau. Find a Housing Counselor Take the course early, since many closings are held up waiting on the certificate.