Bootcamp For Buyers

South Carolina Down Payment Assistance Program

The South Carolina Down Payment Assistance Program, offered by SC Housing, provides financial support to help eligible homebuyers reduce the upfront costs associated with purchasing a home. By offering targeted assistance for down payments and closing costs, this program makes homeownership more accessible for residents across South Carolina.

Benefits

  • Provides up to $10,000 in down payment and closing cost assistance, helping to reduce out-of-pocket expenses for homebuyers.
  • Assistance is structured as a forgivable loan, with no repayment required if the buyer remains in the home for a set period, typically 10 years.
  • Can be combined with SC Housing’s fixed-rate mortgage options for comprehensive financial support.
  • Supports both first-time homebuyers and repeat buyers who meet eligibility requirements.
  • Promotes long-term housing stability and equity building for low- and moderate-income households.

Eligibility Requirements

  • Applicants must qualify for an SC Housing first mortgage to access down payment assistance.
  • Income limits apply and vary based on household size and property location within South Carolina.
  • The property must be located in South Carolina and used as the buyer’s primary residence.
  • A minimum credit score of 620 is typically required, with lender-specific underwriting criteria also applicable.
  • Participants must complete an SC Housing-approved homebuyer education course to ensure preparedness for homeownership.

Additional Information

The South Carolina Down Payment Assistance Program is a critical resource for individuals and families seeking to reduce financial barriers to homeownership. By providing targeted assistance, this program empowers eligible buyers to achieve stable housing and invest in their futures. Administered by SC Housing, the initiative promotes sustainable homeownership and strengthens communities throughout the state.

Frequently Asked Questions About Our Program

What is the South Carolina Down Payment Assistance Program?

The South Carolina Down Payment Assistance Program helps eligible homebuyers cover the upfront costs of purchasing a home, including down payment and closing expenses, making homeownership more accessible.

How much assistance can I receive through this program?

Eligible homebuyers may receive up to $10,000 in down payment and closing cost assistance, depending on the specific program and their financial qualifications.

Who qualifies for down payment assistance in South Carolina?

Eligibility is based on income limits, credit score, and whether the applicant is a first-time homebuyer or purchasing a home in a targeted area. Specific requirements vary by program.

Do I need to be a first-time homebuyer to qualify?

While first-time homebuyers are eligible, the program also accommodates repeat buyers purchasing homes in designated targeted areas or meeting other criteria.

Are there income limits for the program?

Yes, income limits apply and vary by household size and the county where the property is located. These limits are designed to ensure the program benefits low-to-moderate-income families.

What types of homes qualify for this program?

Eligible properties include single-family homes, townhouses, condominiums, and some manufactured homes that meet program guidelines and are permanently affixed to a foundation.

What is the minimum credit score required for assistance?

Most programs require a minimum credit score of 640, though higher scores may be necessary for certain options.

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Is homebuyer education required for this program?

Yes, completing a homebuyer education course is required to ensure participants are prepared for the responsibilities of homeownership and to improve their financial literacy.

Does the assistance have to be repaid?

Some programs offer forgivable loans that do not need to be repaid if the homebuyer remains in the home for a specific period. Other options may require repayment if certain conditions are not met.

Can the assistance be combined with other homebuyer programs?

Yes, the down payment assistance can often be combined with mortgage programs offered by South Carolina Housing or other local and federal programs.

What is the maximum purchase price allowed?

As of 2025, the maximum allowable purchase price varies by county and typically ranges from $310,000 to $510,000, depending on program guidelines.

Are there restrictions on the location of the property?

Yes, the property must be located within South Carolina and meet the program’s eligibility criteria for location and type.

Can this program be used for newly constructed homes?

Yes, the assistance can be applied to newly constructed homes, provided they meet all eligibility requirements, including purchase price limits.

Is there a maximum debt-to-income (DTI) ratio to qualify?

The maximum allowable DTI ratio is generally 45%, though exceptions may apply for borrowers with strong financial profiles.

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Are there any fees associated with receiving down payment assistance?

Standard mortgage-related fees, such as loan origination and processing fees, may apply. These should be discussed with your lender during the application process.

How does the forgivable loan option work?

Forgivable loans typically require the borrower to remain in the home for a set period, such as 10 years, after which the loan is forgiven. If the borrower sells or moves before this period, repayment may be required.

Can the program help with closing costs as well as the down payment?

Yes, the assistance can cover both down payment and eligible closing costs, reducing the financial burden on the buyer.

What is the process for applying for down payment assistance?

Applicants must work with a program-approved lender who will verify eligibility, complete the application, and guide them through the process.

Can this assistance be used with FHA, VA, or USDA loans?

Yes, the assistance can typically be applied to FHA, VA, USDA, and conventional loan programs, depending on the specific program requirements.

What are the benefits of the South Carolina Down Payment Assistance Program?

The program reduces upfront costs, making homeownership more attainable for first-time and repeat buyers while providing education and support to help borrowers succeed in the long term.

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