South Carolina Down Payment Assistance Program Guide

Guide to the South Carolina Down Payment Assistance Program

The South Carolina Down Payment Assistance Program provides financial support to eligible homebuyers to cover down payment and closing costs. This program helps reduce the upfront expenses of purchasing a home, making homeownership more accessible and affordable. Below is an updated guide to the program’s features, eligibility requirements, and application process for 2025.

1. Program Overview:

• Purpose: The Down Payment Assistance Program is designed to assist homebuyers in overcoming financial barriers to homeownership by providing funds for down payments and closing costs.
• Assistance Amount: Buyers may receive up to $10,000 in financial assistance, depending on their eligibility and program guidelines.
• Repayment Terms: The assistance is structured as a forgivable loan, which means repayment is required only if certain conditions, such as occupancy duration, are not met.

2. Eligibility Requirements for 2025:

To qualify for the South Carolina Down Payment Assistance Program, applicants must meet the following criteria:

• First-Time Homebuyer: The program is primarily for first-time buyers, defined as individuals who have not owned a home in the past three years. Exceptions may apply for buyers in targeted areas.
• Income Limits: Household income must fall within program limits, which are based on area median income (AMI) and vary depending on location and household size.
• Credit Score: A minimum credit score of 640 is required for most applicants. Additional requirements may vary by lender.
• Property Requirements: Eligible properties must be located in South Carolina, used as the buyer’s primary residence, and meet the program’s price and eligibility criteria.
• Loan Type: Applicants must be approved for a compatible first mortgage, such as those offered through South Carolina Housing.

3. How to Apply:

Follow these steps to apply for the South Carolina Down Payment Assistance Program:

• Assigned Loan Officer: Once you begin the process, a loan officer will be assigned to assist you. They will explain the program’s benefits, verify your eligibility, and guide you through the application process.
• Prepare Documentation: Be prepared to provide proof of income, tax returns, credit history, and details about the property you wish to purchase.
• Submit Your Application: Work closely with your assigned loan officer to complete the application and provide all necessary documentation. They will process your information and notify you of your approval status.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete a homebuyer education course to ensure they are prepared for the responsibilities of homeownership.
• Course Availability: The course is available online or in person. Upon completion, participants will receive a certificate that must be submitted with their application.

5. Down Payment and Closing Cost Assistance:

• Assistance Amount: The program offers up to $10,000 to cover down payment and closing costs, helping reduce upfront expenses for homebuyers.
• Forgiveness Terms: The assistance is provided as a forgivable loan, typically forgiven over a set period (e.g., five years). If the buyer remains in the home for the required period, repayment is not necessary.

6. Finalizing the Loan:

• Approval Process: After approval, your assigned loan officer will guide you through the final steps, including reviewing loan terms, signing documents, and preparing for the closing process.
• Closing Costs: While the program helps with significant upfront expenses, buyers may still need to cover certain closing costs. Your loan officer will provide a clear breakdown of these costs.

The South Carolina Down Payment Assistance Program is a valuable resource for eligible homebuyers, providing financial support to make homeownership more attainable. By reducing upfront costs and offering forgivable loans, this program helps South Carolina residents take the next step toward owning their dream home. Begin your journey with the South Carolina Down Payment Assistance Program in 2025.