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South Carolina Down Payment Assistance Programs

Down payment assistance programs are designed to help potential homebuyers by providing financial support for the initial costs of purchasing a home. These programs can be particularly beneficial for South Carolina first-time homebuyers or those who may not have substantial savings for a down payment.

One of the main benefits of deposit assistance programs is the reduction of initial costs. By lowering the amount of money needed upfront, these programs make homeownership more accessible.

In SC, the median down payment is 15.1%. With a median home sale price of around $388,100, the typical homeowner needs approximately $58,603 for their down payment, which can be daunting for many South Carolina first-time buyers.

Fortunately, South Carolina offers numerous assistance programs at both the state and local levels. These programs provide various forms of financial aid, such as grants, low-interest loans, and deferred payment loans, to help homeowners afford the necessary expenses.

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Benefits of Down Payment Assistance Programs in
South Carolina

For eligible homebuyers, a deposit assistance program offers many benefits, which include:

More Affordable Home Ownership

South Carolina first-time buyers might not have sizable savings. Down payment and closing cost assistance programs can help make up the difference so you can finally afford your dream home.

Lower Mortgage Payments

Larger down payments mean a smaller principal, which means that you’ll be paying less each month. This can help you save money for other needs and pay off your home loan faster.

Remove Private Mortgage Insurance (PMI)

If you provide less than 20% of the purchase price on a conventional loan, you must pay PMI until you have 20% home equity. A down payment assistance loan can remove this expense.

Better Accessibility

Many of these programs are for low-to-moderate income families, and the minimum credit score to participate is often lower than what would be possible with typical conventional mortgage.

Tax Benefits

A Mortgage Credit Certificate lets you deduct part of your interest rate payments each year on your tax bill, often for the entire life of your loan. You can save thousands of dollars over time with this tax credit.

Competitive Interest Rates

Many first-time buyer programs are attached to mortgage loan programs with more advantageous interest rates. You’ll benefit from both a larger down payment and lower interest.

Why Apply for a South Carolina Down Payment Assistance Program with F5 Mortgage?

Personalized Mortgage Solutions

We work closely with you to match you to the right loan product, whether a VA loan, FHA loan, or conventional mortgage.

Help with Accessing Assistance Programs

We’ll search for first-time homebuyer programs in your area that match your specific profile to ensure you’re not missing out.

Streamlined Application Process

F5 Mortgage simplifies the mortgage process by offering online applications, reducing delays, and ensuring fast closing times.

Great Rates

We’ll compare lenders to find those that offer the most advantageous rates based on your borrowing profile so you can enjoy a low payment.

Expert Advice

Whether you’re embarking on your first home purchase or buying a second property, we can guide you every step of the way.

Fast Service

We pride ourselves on our responsiveness, ensuring that potential homebuyers get immediate assistance when they need it most.

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Down Payment Assistance Programs in South Carolina

Palmetto State homebuyers have a variety of programs to choose from when it comes to affording their property purchase. There are both statewide programs and location-specific offerings, such as grants and forgivable second mortgages. While most are tailored to first-time homebuyers, there are some options for repeat buyers as well.

SC Housing Homebuyer Program

The South Carolina State Housing Finance and Development Authority provides 30-year fixed-interest loans with down payment help for eligible applicants. In addition, SC Housing provides a forgivable second mortgage with a 15-year term, a 0% interest rate, and no monthly payments.

Down Payment Assistance Programs in South Carolina

To participate, you must complete a homebuyer education course; if you want to use the second mortgage, you must meet income limits. Eligible properties include single-family homes, modular homes, townhomes, and FHA-approved condominiums.

SC Housing Palmetto Home Advantage

This program has no purchase price limits and is available to both first-time buyers and repeat buyers. However, the borrower’s income limit is $127,200, and household income can be higher. You need to work with an approved mortgage lender affiliated with the program.

You can also receive a ten-year forgivable loan of up to 4% of the loan amount to cover the down payment and closing costs. This loan has a 0% interest rate, and there is no monthly payment required.

SC Housing Palmetto Heroes

This program assists first-time buyers who work in public service positions, including medical professionals, educators, law enforcement officers, military members, and firefighters.

The program works in conjunction with the SC Housing Homebuyer program but offers more generous assistance, up to $12,000, as a forgivable 15-year second loan with a 0% rate and no payments. Household income limits are set by county, and the maximum loan amount is $425,000.

SC Housing County First Initiative

This option is available in 20 counties and has the same qualification requirements as the SC Housing homeownership program. However, it offers $8,500 in forgivable down payment assistance to cover closing costs and down payments.

You can choose between all the major loan programs, including conventional, FHA, USDA, and VA loans, with the added benefits of more competitive rates. It’s open to both first-time and move-up buyers.

South Carolina Down Payment Assistance Programs
by Location

In addition to statewide programs, there are also local options that will assist with your down payment and closing costs if you live within the target area.

Greenville County

The Greenville County Homebuyer Assistance program offers down payment and closing cost assistance for those who make under 80% of the area median income (AMI) and are purchasing a primary residence. You can receive up to $10,000 as a forgivable down payment assistance loan with 0% interest and no payments.

You must secure a 30-year fixed-rate mortgage and put at least $500 into the home purchase. The maximum purchase price for a new construction is $250,000, or $205,000 for an existing home. The total mortgage cannot exceed the home’s appraised value.

South Carolina Down Payment Assistance Programs by Location

Spartanburg

If you are purchasing a primary residence in Spartanburg and make 80% or less of the AMI, you may be eligible for up to $5,000 as a forgivable loan with 0% interest. The home price cannot be more than $191,000 for an existing home or $251,000 for a new construction. Additionally, you must get a third-party inspection to ensure the home is habitable.

First responders, educators, nonprofit employees, and first-time homeowners buying in the Northside neighborhood of Spartanburg may also explore the Northside Development Group program. One of this program’s benefits is that you can make up to 120% of the median income and still receive $10,000.

Beaufort

City of Beaufort employees in good standing who secure a 30-year fixed-rate mortgage on a principal residence can receive a forgivable second loan with 0% interest. This program requires that your household income be up to 200% of the Area Median Income (AMI) and that you invest just $500 in the property.

Eligible loan types include conventional, VA, FHA, and USDA loan products, giving you a variety of options.

Goose Creek

If you’ve been employed by the city of Goose Creek for at least one year, you may be eligible for up to a $10,000 forgivable second loan with 0% interest to help you afford a home purchase. The amount of assistance you qualify for is based on your salary, with the max salary being $85,000.

You must stay employed by the city for the duration of the loan’s term, which is five years. If you are using a Federal Housing Administration loan, the funds can only be used for closing costs, not the down payment. This is only for primary residences.

Who Qualifies for Down Payment Assistance in South Carolina?

Eligibility for down payment assistance in South Carolina typically depends on several factors. Common criteria include income levels, first-time homebuyer status, and property location. Additionally, there are often special provisions for veterans, first responders, and educators.

While each program is different, most have a cap on the percentage of the area median income that you can make per year, typically 80%. These programs are geared toward South Carolina first-time homebuyers purchasing their first home rather than an investment property.

Sometimes, the property you are purchasing often needs to be located within a specific geographic area as some local programs are limited to certain cities or counties.

Income thresholds are typically higher for veterans, law enforcement, first responders, and educators, who are eligible for special programs like Palmetto Heroes.

For all the above programs, you must attend a homebuyer education course through a local affiliate to ensure you’re prepared to pay back your loan amount.

How to Apply for Down Payment Assistance in South Carolina?

Applying for down payment assistance in South Carolina involves several steps and requires specific documentation. Here is a simple, step-by-step guide to help you navigate the process:

Research Programs

Identify the payment programs available in SC that you may qualify for. Check both statewide and local programs. Ensure your income meets the program thresholds and that you comply with all application requirements.

Check Eligibility

Review the eligibility criteria for the programs you are interested in, such as income limits, first-time homebuyer status, and property location.

Gather Required Documents

Prepare the necessary documentation. Commonly required documents include:
Proof of income (pay stubs, tax returns, W-2 forms)
Employment verification
Credit report
Bank statements
Identification (driver’s license or passport)
Purchase agreement for the property

Pre-Approval for a Mortgage

Obtain pre-approval for a mortgage from a lender that participates in deposit assistance programs. This shows that you are a serious buyer and financially capable of purchasing a home.

Complete the Application

Fill out the application for the down payment assist program. Ensure all information is accurate and complete.

Submit the Application

Submit your completed application along with all required documents to the program administrator or your lender.

Await Approval

Wait for approval from the program. This process may take several weeks. Be prepared to provide any additional information or documentation if requested.

Close on Your Home

If approved, the assistance funds will be applied at closing. Complete the closing costs process and finalize your home purchase.

Prepare For Your Mortgage Application

Check Your Credit Report

Review your credit report for any errors and dispute any inaccuracies. Your credit score determines the interest rates you can access.

Determine Your Budget

Calculate how much you can afford for a home, including monthly mortgage payments, insurance, taxes, and maintenance costs. Choose a home that fits comfortably within your budget to avoid financial stress.

Save for a Down Payment

Even with assistance, having additional savings can help with other costs and demonstrate financial responsibility. A larger down payment can reduce your loan amount and monthly payments.

Gather Financial Documents

Prepare all necessary documents, including recent pay stubs, tax returns, bank statements, and identification. You’ll also need a gift letter from the assistance program once you’ve been approved.

Get Pre-Approved

Obtain a mortgage pre-approval from a lender. This will give you a clear idea of how much you can borrow and show sellers you are a serious buyer. Ensure you match the lender’s requirements for loan approval to get the best interest rates.

Improve Your Financial Standing

Pay off debts to lower your debt-to-income ratio and maintain a good credit score by making timely payments and keeping credit card balances low.

Property Appraisal and Inspection

After you’ve applied, the property will need an appraisal; some programs also require an inspection. Remain responsive to the lender, who may need additional documentation from you, like proof of insurance.

FAQs About South Carolina Down Payment Assistance

Does South Carolina offer down payment assistance?

Yes. There are various statewide and local programs that can assist you in affording the upfront costs. Payment assistance SC Housing has several different options depending on your needs, and it also offers competitive rates and DPA.

How to buy a house in South Carolina with no money down?

Most of these programs require that you invest at least $500 in the home. However, if you choose VA or USDA loans, you won’t have to provide a down payment.

How much do you need for a down payment on a house in South Carolina?

The down payment amount depends on the program. For USDA and Veterans Affairs loans, you don’t have to put any money down. However, the minimum down payment for a conventional loan is 3% if you choose a 97% LTV loan. For an FHA loan, you need at least 3.5% down if you have a credit score of 580 or higher.

What is the South Carolina Hero Homebuyer Program?

Also known as the Palmetto Heroes program, this is provided by SC Housing to select borrowers in public service, including licensed medical professionals, firefighters, law enforcement officers, educators, and veterans. These borrowers can receive up to $12,000 in DPA as a forgivable, 0% interest second loan on a home purchase of $425,000 or less.

Does South Carolina have a mortgage relief program?

While the SC Homeownership Rescue program has now concluded, those with USDA loans can access assistance with their mortgages through the Inflation Reduction Act. Palmetto County also provides emergency assistance with utility bills and necessities with documented proof of hardship.

What kind of assistance can I get in South Carolina?

The South Carolina State Housing Finance and Development Authority provides various programs with fixed-rate loans packaged with DPA loans, all forgivable with 0% interest rates.

CountyWorks also works with local providers in specific counties to offer assistance. These smaller programs are typically restricted to public servants, first responders, medical professionals, and law enforcement.

What is the South Carolina hardship loan?

The SC HELP program, which was the hardship loan program, has now permanently closed. however, there are still local options for hardship relief. Telamon Housing and Financial Empowerment assists homeowners facing foreclosure in seeking local grants and programs that can prevent them from losing their homes.

Does South Carolina have housing assistance?

In addition to down payment loans, SC Housing offers the Housing Choice Voucher program, which assists low-income families in finding safe, habitable housing in the private market. The amount of assistance you can access depends on your income and family size. This program is available in seven South Carolina counties: Clarendon, Colleton, Dorchester, Fairfield, Lee, and Lexington.

What is low income in South Carolina?

The Department of Housing and Urban Development determines low-income thresholds by metropolitan statistical area (MSA) each fiscal year. Family sizes of up to 8 people are considered in this calculation.

For example, in the Florence, SC, metropolitan statistical area, low income for a single-family household is $43,250. In the Beaufort MSA, $56,500 is considered low income for a single-family household.

How long is the section 8 waiting list in SC?

The waiting list for Section 8 Housing in South Carolina is three to five years long. It is currently closed while SC Housing processes applications, which can take up to 24 months.

What is the SC needs grant?

The South Carolina Needs-Based Grant is an educational grant for students who demonstrate financial need and who reside within the state. To apply, the student must maintain a 3.0 GPA, earn an average of 30 credit hours by the end of the first year, and complete the Free Application for Federal Student Aid (FAFSA).

Full-time students can receive up to $3,500 per year in assistance, while part-time students can receive up to $1,750 annually.

How much is the Pell Grant in South Carolina?

The maximum Pell Grant in SC is $7,395 per year per student.

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Down Payment Assistance Programs in Other States
We Serve

Colorado

Borrowers in the Centennial State can rely on the Colorado Housing and Finance Authority’s grant program, offering them up to the lesser of $25,000 or 3% of the home’s price with no repayment required. Second mortgages are also available for up to 4% of the loan.

Florida

Florida borrowers can receive up to $10,000 in assistance with upfront home ownership costs through the Florida Assist Second Mortgage program, a forgivable loan with a 0% interest rate. This program is intended to help first-time homeowners afford property in this expensive state.

Georgia

The Georgia Department of Community Affairs administers the Georgia Dream Program, which offers up to 5% or $10,000 in loans to homebuyers who have not owned property in the last three years. Disabled buyers and public servants can receive up to $12,500.

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Texas

The Home Sweet Texas program can offer homeowners up to 5% in the form of a forgivable second loan, as well as a 30-year fixed-rate mortgage that provides advantageous rates to low-income borrowers.

Michigan

The Michigan State Housing Development Authority runs the MI Home Loan Program, a mortgage option with up to $7,500 for eligible borrowers. Buyers can use this for their down payment, closing costs, and other upfront expenses associated with homeownership.

California

The California Housing Finance Agency (CalFHA) offers several programs to help homeowners achieve their dreams. This includes the MyHome Assistance Program, which can provide applicants with up to 3.5% of the purchase price or home value.