Down Payment Assistance in South Carolina

What is down payment assistance in South Carolina?

South Carolina’s coastal cities have seen home prices climb in recent years, but with the right down payment assistance, buyers are still finding real paths to homeownership.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the Blue Ridge foothills of the Upstate to the sandy shores of the Lowcountry, South Carolina homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in South Carolina or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in South Carolina

The South Carolina State Housing Finance and Development Authority (SC Housing) is the state’s housing finance agency and the central source for statewide DPA programs. SC Housing doesn’t lend directly to buyers. Homebuyers apply through an SC Housing-approved participating lender, which will combine the assistance with the mortgage.

SC Housing Homebuyer Program

The SC Housing Homebuyer program offers low, fixed-interest rate loans that can be combined with down payment assistance. The assistance is structured as a 0% interest second loan with no monthly payments with a 15-year term. The full amount of the DPA is forgiven if the borrower remains in the property for 15 years. The amount of assistance varies by the type of SC Housing loan used.

Homebuyer program requirements include the following:

• Subject to county-specific household income and sales price limits
• For non-targeted counties, the borrower must be a first-time homebuyer or not have had an ownership interest in a principal residence in the three years preceding
• For targeted counties, the borrower must not own a home or have an ownership interest in a home at the time the loan closes
• Minimum credit score of 640
• Available on new and existing homes
• Conventional, FHA, VA, or USDA loans only
• Homebuyer must complete a homeowner education course
• DPA is based on availability

SC Housing County First Initiative

The County First Initiative is a rural program to provide potential homebuyers in underserved communities with additional resources. Eligible homebuyers can receive up to $8,000 as forgivable down payment assistance to purchase a home in certain counties of the state.

County First Initiative requirements include the following:

• Assistance is available for both first-time and move-up buyers
• Borrowers can choose FHA, USDA, or VA financing
• Subject to county-specific household income and sales price limits
• Minimum credit score of 640
• Homebuyer must complete a homeowner education course

SC Palmetto Home Advantage

The Palmetto Home Advantage program offers forgivable down payment assistance of 0%, 3%, or 4% of the first loan amount. The assistance does not require any monthly payments. 

Palmetto Home Advantage requirements include the following:

• Assistance is available for both first-time, move-up and repeat buyers
• Borrowers can choose FHA, USDA, VA, or Conventional loan options
• No home sales price limit
• Maximum borrower income limit of $135,750
• Minimum credit score of 640

Beyond SC Housing’s statewide programs, several South Carolina cities and counties have established their own DPA programs. Many of these can be stacked with SC Housing assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Spartanburg down payment assistance program

Spartanburg sits in South Carolina’s Upstate region, known for its manufacturing roots, including the state's BMW plant nearby, and a revitalized downtown built around local breweries and restaurants. A lower cost of living than the coast, paired with easy access to the Blue Ridge foothills, gives buyers small-city charm without the higher price tag.

Spartanburg down payment assistance program includes:

Down Payment Assistance: This down payment assistance program is offered through CommunityWorks, a nonprofit Community Development Financial Institution (CDFI) that provides financial education, lending, and investment to underserved individuals, families, and communities across the state. This program provides up to $20,000 in down payment or closing costs assistance. The funds are structured as a non-amortizing second loan at 0% interest, that will be forgiven over 20 years depending on the amount of assistance.

Program details and requirements include:

• Must be first-time homebuyer
• Household income must be at or below 80% of area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development
• Buyers must secure a fixed-rate first mortgage
• Must invest a minimum of $500 toward the home purchase
• Completion of a homebuyer education course
• Must request a third-party home inspection before purchase
• Maximum purchase price is $237,000 for existing homes, and $273,000 for new homes
• Home must be buyer’s principal residence

Greenville County down payment assistance program

Greenville County anchors South Carolina’s Upstate region, built around a walkable downtown famous for Falls Park and the Reedy River running right through its center. A strong manufacturing and advanced-tech job base, paired with easy access to the Blue Ridge Mountains, gives buyers small-city charm with room to grow. (Counties like this are typically part of a larger metropolitan area — in this case, Greater Greenville.)

Greenville County down payment assistance program includes:

Down Payment Assistance: This program is offered through CDFI and provides up to $20,000 in forgivable assistance for down payments or closing costs. The funds are structured as a non-amortizing second loan at 0% interest, that will be forgiven over 10 years depending on the amount of assistance. Repayment is due if the home is sold, if the subsidy terms aren’t completed, or the funds were part of a subsidy with a due upon sale term.

Program details and requirements include:

• Must be a first-time homebuyer
• Household income must be at or below 80% AMI
• Buyer must secure a 30-year, fixed-rate first mortgage
• Must invest a minimum of $500 toward the home purchase
• Completion of a homebuyer education course
• Maximum purchase price is $425,000 for a new or existing home
• Home must be primary residence

Richland County down payment assistance program

Richland County is home to Columbia, South Carolina’s state capital, and the University of South Carolina. A mix of government, education, and military jobs, including nearby Fort Jackson, paired with a lower cost of living than the coast, gives buyers stability and affordability at the heart of the state. (Counties like this are typically part of a larger metropolitan area — in this case, Greater Columbia.)

Richland County down payment assistance program includes:

Richland County Home Ownership Assistance Program (RCHAP): The program provides eligible first-time homebuyers with up to $24,500 in assistance to purchase a home in unincorporated Richland County. The funds can be used toward the down payment, closing costs, or principal reduction. The assistance is provided as a deferred forgivable loan. Repayment is required if the property is no longer the primary residence.

Program details and requirements include:

• Affordability period is based on the amount of assistance received. Buyers who receive $14,999 or less must live in the home for five years. Buyers who receive $15,000 or more must live in the home for 10 years
• Must be a first-time homebuyer
• Must be a South Carolina resident
• Household income must meet HUD limits for Richland County
• Completion of a homebuyer education course
• Must have a pre-approval letter from your lender
• Property must be a single-family home, and located in an unincorporated area of Richland County
• Property must be built after 1978
• Maximum purchase price is $228,000 for existing homes, and $273,000 for new homes
• Home must be primary residence of buyer

These are the main down payment assistance programs available across South Carolina. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders, teachers, or city/county employees. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for South Carolina down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at schousing.com. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. SC Housing programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying South Carolina property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

South Carolina down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}