SC Housing Homebuyer Program First-Time Homebuyer Assistance Programs

SC Housing Homebuyer Program: A First-Time Buyer’s Guide to Owning a South Carolina Home

Updated May 2024 • 10–12 minute read

The SC Housing Homebuyer Program is more than a mortgage; it’s a launchpad for South Carolinians who want keys in hand without draining their savings. Within a single application, you could secure an affordable fixed-rate loan and cash for your down payment—two hurdles that keep many renters from stepping over the threshold into permanent homes.

Why This Program Matters in Today’s Market

According to the South Carolina Association of REALTORS®, the median home price topped $300,000 in early 2024—roughly 35 % higher than five years ago. Wages, meanwhile, inched up at half that speed. Against that backdrop, the SC Housing Homebuyer Program arrives like rain in a drought: fixed rates substantially below market, plus forgivable assistance that can soften—or even erase—your required cash at the closing table.

When conventional mortgages feel like climbing Table Rock without a trail, this state-backed option carves out a gentler switchback for first-time and repeat buyers alike.

How the SC Housing Homebuyer Program Works

Think of the program as a bundle with two core components:

• Low-interest, 30-year fixed-rate mortgage—available through approved lenders statewide.
• Down Payment Assistance (DPA)—up to 4 % of the loan amount, which may be forgivable after 10 years if you stay in the home.

Borrowers may also layer local grants, seller credits, or federal programs (e.g., HUD’s Good Neighbor Next Door) on top, multiplying the savings.

Eligibility Snapshot

Below is the 50-cent tour of who qualifies. We’ll dive deeper in the next section, but a quick scan can tell you whether it’s worth your time to apply.

• Credit score: 620+ for FHA/VA/USDA loans; 640+ for conventional.
• Income limit: Up to $99,000 (higher in certain counties).
• Purchase price cap: Around $349,000 for most of the state.
• Home type: Primary residence only—single-family, townhome, condo, or new construction.
• Buyer education: 8-hour HUD-approved course required.

Now let’s unpack the two most-googled questions future homeowners ask.

How Do You Qualify for the SC Housing Homebuyer Program?

Qualifying is a three-legged stool—remove one leg and the whole thing wobbles. The legs are creditworthiness, income thresholds, and property requirements.

1. Credit & Debt Guidelines

A mid-score of 620 for government-backed loans (FHA, VA, USDA) will open the door, but hitting 680 can improve your interest rate. Lenders also look at DTI ratios; under 45 % is a sweet spot, though exceptions exist for strong compensating factors such as hefty savings or a long work history.

2. Income Limits by County

South Carolina’s economy is a quilt of urban hubs and rural pockets, so income caps vary. An Horry County family of three may qualify with up to ~$87,000, while in Charleston the limit stretches closer to ~$99,000. Always verify with the SC Housing income chart, updated annually.

3. The Property Rulebook

The home must become your primary residence within 60 days of closing. No vacation homes, flips, or Airbnbs allowed. If you choose new construction, the builder must carry a one-year warranty—something DIY enthusiasts sometimes overlook.

What Are the Income Limits for the SC Housing Homebuyer Program?

Income limits are designed to target moderate-income households—the folks who earn “too much” for federal subsidies but “too little” for 20 % down.

Below is a simplified table based on 2024 figures (rounded). Your lender will pull exact numbers at application time, but these estimates help you gauge fit:

Remember: the program uses household income, not just the borrower’s. If Grandma’s pension helps pay bills, it counts.

Benefits That Go Beyond the Interest Rate

• Forgivable Assistance: Stay 10 years and the DPA silently dissolves—no repayment.
• Reduced Mortgage Insurance (MI): Conventional loans through SC Housing carry lower MI factors than standard Fannie Mae products.
• Predictable Payments: Fixed rates prevent the “payment shock” adjustable-rate loans can trigger.
• Financial Education: Mandatory training arms buyers with budgeting tools—an underrated perk that helps cut default rates.

A Two-Minute Micro-Story

When Jasmine, a 28-year-old nurse in Florence, started browsing homes last spring, listing prices felt like numbers from another planet. After a lender flagged her for the SC Housing Homebuyer Program, she snagged a $210,000 bungalow with just $1,200 out of pocket. Her fixed payment is $300 less than her previous rent—money she now stashes in a “future kitchen reno” jar. Six months in, she calls the program “career freedom” because the lower payment let her drop weekend overtime shifts and finally sign up for grad school.

Step-by-Step Application Roadmap

1. Choose an Approved Lender. You can find a searchable list on the SC Housing site.
2. Complete Pre-Qualification. Your loan officer will pull credit and estimate your max purchase price.
3. Finish Homebuyer Education. This can be done online in roughly eight hours; keep your completion certificate.
4. Sign a Sales Contract. Insert a financing contingency that references the program to protect your earnest money.
5. Submit Full Loan Package. The lender forwards paperwork to SC Housing for a compliance review.
6. Close and Collect Keys. Expect 45–60 days from contract to closing—occasionally longer in peak spring months.

Tips to Strengthen Your Application

• Boost Credit Early: Pay credit cards to 30 % utilization three months before applying.
• Document Deposits: Large bank deposits without paper trails trigger audit flags. Keep copies of gifts or side-gig invoices.
• Negotiate Seller Concessions: Up to 6 % of the purchase price can go toward closing costs—freeing your DPA to cover down payment only.
• Time Your Application: Income limits update every spring. If you recently got a raise, apply before April 1 to use the prior-year caps.

The Cost of Waiting: A Quick Math Check

Let’s compare buying now with waiting one year, assuming 5 % annual appreciation and 6.5 % mortgage rates (the April 2024 average). On a $275,000 home, a 5 % price jump equals $13,750. Even if rates stay the same, that increase alone adds roughly $90/month to your payment. With the SC Housing Homebuyer Program, you could lock a sub-market rate today and pocket that $90 for a future vacation—or emergency fund.

FAQ

Ready to Turn the Key? Your Next Move

The door to homeownership in South Carolina doesn’t have to stay locked. With the SC Housing Homebuyer Program, even modest earners can step across the welcome mat sooner than they imagined.

If you’re serious about planting roots—whether under Myrtle Beach sun or Greenville foothills—team up with an approved lender today. A five-minute phone call could shave thousands off your upfront costs and set you on a predictable, 30-year path toward equity growth.

Have questions or want a personalized savings estimate? Reach out to our in-house mortgage specialists and mention “SC Housing Blog” for a complimentary consultation.

Source: South Carolina State Housing Finance & Development Authority. Additional data derived from South Carolina Association of REALTORS® market updates (April 2024).

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