The 2026 guide to South Carolina first-time buyer programs

Buying your first home in South Carolina is more affordable than most families realize — but only if you know which programs stack. This guide walks through the four most-used first-time buyer programs in the state and shows exactly which ones you can combine.

1. SC Housing Homebuyer Program

The South Carolina State Housing Finance and Development Authority (SC Housing) runs the flagship first-time buyer program. It pairs a 30-year fixed-rate mortgage with up to $10,000 in forgivable down-payment assistance delivered as a zero-interest second mortgage that's forgiven after you live in the home for a set number of years.

• Credit score minimum: 620
• Household income limits vary by county
• Must be a first-time buyer (or not have owned in the last 3 years), OR buying in a targeted county — which includes large parts of the Lowcountry, Pee Dee, and Upstate

2. Palmetto Home Advantage

For buyers who don't qualify as first-time or who exceed the SC Housing income caps, Palmetto Home Advantage offers forgivable down-payment and closing-cost assistance equal to 3–5% of the loan amount with no first-time-buyer requirement. You can pair it with a Conventional, FHA, VA, or USDA loan.

3. USDA Rural Development — 0% down

Large portions of South Carolina are USDA-eligible, including most areas outside the Charleston, Columbia, and Greenville cores. USDA loans require zero down payment, feature below-market interest rates, and can be combined with Palmetto Home Advantage for a near-cash-to-close experience.

Lowcountry tip: Most of Dorchester, Berkeley, and Colleton counties outside the I-526 corridor qualify for USDA. We check every address during pre-approval.

4. Mortgage Credit Certificate (MCC)

SC Housing also issues a Mortgage Credit Certificate that converts up to 30% of your annual mortgage interest into a dollar-for-dollar federal tax credit, capped at $2,000/year for the life of the loan. Most borrowers don't claim it because no one at the bank mentioned it — that's real money on the table every April.

Stacking the programs

The most powerful combination for a first-time SC buyer with household income under program limits is:

1. USDA 30-year fixed as the first mortgage
2. Palmetto Home Advantage or SC Housing DPA for closing costs
3. MCC for the annual tax credit

That stack can turn a $250,000 Lowcountry home purchase into a sub-$3,000 cash-to-close — while also delivering a $2,000/year federal tax credit.

Next step

If you want us to model exactly which programs you qualify for, the quickest path is a 10-minute pre-approval call. We'll pull your credit (soft pull, no impact), verify which counties qualify, and send a written pre-approval the same day.

Published by Ken, Founder & Senior Mortgage Advisor. NMLS #2476547.