First-time home buyer programs in South Carolina: assistance, loans and real costs
Before the program names: south Carolina’s owner-occupied property tax rate is among the lowest in the country because primary residences are assessed at 4% rather than 6% — a first-time buyer must file for that classification or pay half again as much.
| State housing agency | South Carolina State Housing Finance and Development Authority (SC Housing) |
|---|---|
| Median home price (approx.) | $300,000 — statewide order of magnitude; metros differ |
| 3.5% / 5% / 20% down | $10,500 / $15,000 / $60,000 on the median |
| Property tax (effective) | about 0.53% — roughly $1,590 a year on the median |
| Mortgage credit certificate | Yes — mortgage credit certificate offered |
| Transfer tax | South Carolina’s deed recording fee is $1.85 per $500 (0.37%), paid by the seller; there is no mortgage tax. |
What the state offers in South Carolina
SC Housing’s Homebuyer Program offers FHA, VA, USDA and conventional first mortgages with forgivable down payment assistance, the Palmetto Home Advantage serves repeat buyers with a percentage-based second, and the SC Mortgage Tax Credit is the state’s MCC; County First targets rural counties.
Down payment and closing cost assistance
SC Housing’s standard assistance is a forgivable second of up to $10,000 (forgiven after a period of occupancy, commonly ten years at 0% with no payment); Palmetto Home Advantage offers up to 4% of the loan as a forgivable second; County First adds assistance in designated counties.
Read the lien type before the dollar figure: grant (no repayment), forgivable second (repaid only if you leave early), deferred second (repaid at sale or refinance), or repayable second (a monthly payment that counts in your debt-to-income ratio). See how down payment assistance programs work.
Is there a first-time buyer tax credit?
The SC Mortgage Tax Credit is a Mortgage Credit Certificate worth a federal tax credit of up to 30% of annual mortgage interest (capped at $2,000 a year) for first-time buyers within income and price limits.
Who qualifies: income, price and credit limits
SC Housing income and purchase price limits vary by county and household size; a 640 minimum credit score and homebuyer education are required, and the home must be a primary residence.
Transfer taxes and closing costs in South Carolina
South Carolina’s deed recording fee is $1.85 per $500 (0.37%), paid by the seller; there is no mortgage tax.
South Carolina closings are conducted by attorneys; buyer costs — attorney, title, lender fees and prepaids — typically total 2% to 3% of the price. Our guide to closing costs explains each line of the Loan Estimate and which fees you can shop.
The numbers on a typical South Carolina home
Take a $300,000 home — roughly the statewide median, though South Carolina’s metros vary widely — and an illustrative 6.5% rate. The table shows the cash down and the monthly principal and interest for the three structures first-time buyers use most, plus the property tax at South Carolina’s approximate 0.53% effective rate ($1,590 a year). Insurance and mortgage insurance come on top.
| Structure | Down payment | Loan amount | P&I at 6.5% (30 yr) | Property tax / mo (est.) |
|---|---|---|---|---|
| FHA, 3.5% down | $10,500 | $289,500 | $1,830 | $133 |
| Conventional, 5% down | $15,000 | $285,000 | $1,801 | $133 |
| Conventional, 20% down (no PMI) | $60,000 | $240,000 | $1,517 | $133 |
Illustrative rate and approximate state figures — not an offer or a quote. Full payment tables cover $150,000 to $800,000 at 5% to 8%; the affordability guide explains how lenders size the loan.
Frequently asked questions
Does South Carolina have down payment assistance for first-time buyers?
SC Housing’s standard assistance is a forgivable second of up to $10,000 (forgiven after a period of occupancy, commonly ten years at 0% with no payment); Palmetto Home Advantage offers up to 4% of the loan as a forgivable second; County First adds assistance in designated counties. The agency publishes the current limits and amounts; a lender approved for the program will know them.
Is there a first-time home buyer tax credit in South Carolina?
The SC Mortgage Tax Credit is a Mortgage Credit Certificate worth a federal tax credit of up to 30% of annual mortgage interest (capped at $2,000 a year) for first-time buyers within income and price limits. A Mortgage Credit Certificate is a federal income tax credit, claimed each year on your return, not cash at closing.
What are typical closing costs when buying a house in South Carolina?
South Carolina closings are conducted by attorneys; buyer costs — attorney, title, lender fees and prepaids — typically total 2% to 3% of the price. South Carolina’s deed recording fee is $1.85 per $500 (0.37%), paid by the seller; there is no mortgage tax.
Guides for first-time buyers
- Appraisal gap: what happens when the home appraises below your offer
- Down payment assistance programs: how they work and how to find yours
- How much house can I afford? The math lenders actually use
- FHA vs conventional for a first-time buyer: which loan wins, and when
Other South Carolina pages: hard money rules in South Carolina · foreclosure in South Carolina.