If you are buying your first home in the Charleston metro, SC Housing programs are likely the most important financial resource available to you. The South Carolina State Housing Finance and Development Authority runs four programs that can put thousands of dollars toward your down payment and closing costs.
Here is a plain-English breakdown of every program, who qualifies, and how to use them in Charleston, North Charleston, Mount Pleasant, Summerville, and Goose Creek.
What Is SC Housing?
SC Housing is a state agency that partners with approved private lenders to offer first-time buyers below-market mortgage rates and forgivable down payment assistance. SC Housing does not lend money directly. You apply through an approved lender, and SC Housing funds the assistance behind the scenes.
SC Housing Homebuyer Program
This is the core program for first-time buyers in South Carolina. It pairs a 30-year fixed-rate mortgage with up to $10,000 in forgivable down payment assistance. The DPA is a second lien at 0% interest with no monthly payments. If you stay in the home for 15 years, the loan is fully forgiven.
Who qualifies: You must not have owned a primary residence in the past three years. Income limits in Charleston County are $110,900 for 1-2 person households and $127,535 for three or more. The purchase price cap in Charleston County is $450,000. Minimum credit score is 620 for FHA loans and 640 for conventional.
What it covers: Down payment and closing costs.
Palmetto Home Advantage
This program is different from the standard Homebuyer Program in two important ways. First, it has no first-time buyer requirement. Second, it has no purchase price cap. That makes it especially useful in Mount Pleasant and other higher-priced parts of the Charleston metro.
The income limit is $135,750 statewide and is not based on household size. Down payment assistance ranges from 3% to 5% of the loan amount and is forgiven after 10 years.
Who qualifies: Any buyer in South Carolina with a 640 credit score and income under $135,750. No prior homeownership restriction.
What it covers: Down payment and closing costs. Also offers reduced mortgage insurance rates on conventional loans.
Palmetto Heroes Program
SC Housing dedicates $10,000 in forgivable DPA specifically for community service professionals. The 2026 program is active and available statewide.
Eligible professions: K-12 and higher education teachers, registered nurses, licensed practical nurses, certified nursing assistants, law enforcement officers, correctional officers, firefighters, EMTs, paramedics, veterans, active duty military, and National Guard members.
Veterans are exempt from the first-time buyer requirement. All other eligible professionals must not have owned a primary home in the past three years.
What it covers: $10,000 toward down payment or closing costs, forgiven after 10 years.
SC Housing Mortgage Credit Certificate (MCC)
The MCC is a tax credit, not down payment assistance. It reduces your federal income tax bill by 30% of the mortgage interest you pay each year, up to $2,000 per year. That benefit continues as long as you own and occupy the home.
On a $300,000 mortgage at 7% interest, your first-year interest is roughly $20,900. The MCC gives you a $2,000 federal tax credit that year. Over a 10-year period that equals $20,000 in tax savings, even if interest rates drop and you refinance.
The MCC can be combined with SC Housing DPA programs for maximum benefit.
Stacking Programs in Charleston
The real opportunity in Charleston is combining programs. Here is what a typical first-time buyer could stack:
SC Housing Homebuyer Program: $10,000 forgivable DPA Palmetto Heroes (if eligible): $10,000 forgivable DPA City of Charleston Homeownership Initiative: $20,000 forgivable DPA MCC tax credit: up to $2,000 per year
Total potential assistance: $40,000 plus annual tax savings.
Not every buyer qualifies for every program, and some combinations require the same lender to structure them correctly. Always work with an SC Housing-approved lender who has experience layering multiple programs.
How to Apply
SC Housing programs are not applied for directly through the state agency. The process starts with an SC Housing-approved lender who will pre-approve you and lock in the program funds on your behalf.
Steps: Complete a HUD-approved homebuyer education course. The Charleston Trident Urban League at (843) 965-4037 offers HUD-approved counseling and first-time buyer workshops. Get pre-approved with an SC Housing-approved lender. Tell your lender which programs you want to apply for so they can structure the loan correctly. Find a home within the purchase price limits for your county and program. Submit your application through your lender.
Ready to See What You Qualify For?
Paul Thompson is a mortgage loan officer with American Financial Network (AFN) serving the greater Charleston metro. He specializes in helping first-time buyers navigate SC Housing programs and find every dollar of assistance available.
Mortgage questions: Paul@venturehomelending.com | (704) 453-4847 Real estate questions: Paul@Pluffmudrealty.com
This website is for informational purposes only. Program availability, income limits, and assistance amounts change frequently. Contact the administering organization directly to confirm current program details before making any financial decisions. CharlestonHomeMoving.com is not a lender, real estate broker, or financial advisor.