Mortgage Navigator • South Carolina DPA

South Carolina down payment assistance, with forgiveness timelines and FICO included.

SC Housing statewide programs, Palmetto Home Advantage, rural initiatives, Heroes, Charleston opportunities and national DPA.

Reviewed September 11, 2026 • Joshua Dobson, NMLS #190260

Published Minimum FICO: SC Housing's Palmetto Home Advantage materials publish a 640 minimum credit score. Other SC Housing products can have program/loan-type requirements, so Mortgage Navigator shows a number only where the current official material supports it. A published minimum is not an approval guarantee.

Quick comparison

ProgramAssistancePublished min. FICOWhoBiggest catch
SC Housing Homebuyer (Bond)Current DPA varies by program/rate sheetCurrent program matrixIncome-eligible buyers15-year 0% forgivable second; county income/price limits and federal recapture framework.
Palmetto Home AdvantageCurrent menu can include 0%, 3%, 4% or 5%640First-time + repeat10-year forgivable second; first-mortgage rate differs by DPA amount.
County FirstEnhanced rural/county assistanceCurrent SC Housing matrixEligible underserved countiesOnly designated counties; funding/product terms change.
Palmetto HeroesSeasonal; amount set per annual releaseCurrent annual guideDefined public-service/military occupationsSeasonal, limited funds; don't rely on old annual amounts.
Charleston Homeownership InitiativeProperty subsidy / affordable purchase opportunitiesFirst-mortgage qualificationGenerally 50%–120% AMI, no ownership in 3 yearsProperty-specific and long affordability restrictions.
National programsVariesProduct/lender specificVariesCompare first mortgage + DPA together.
StatewideForgivable second

SC Housing Homebuyer Program (Bond)

SC Housing's traditional Homebuyer/Bond program combines a 30-year first mortgage with down payment assistance for qualifying low- and moderate-income buyers. Eligible homes are located throughout South Carolina, subject to the program's county-specific household-income and home-price limits.

The current SC Housing limits page describes the DPA as a 0% second lien with no monthly payments and a 15-year term. If the borrower remains in the home for the full term, the lien is forgiven.

Published minimum FICO: use the current SC Housing first-mortgage/program matrix for the exact loan type rather than applying the Palmetto Home Advantage 640 score universally.

Josh's watch-out: “Forgivable” does not mean immediately forgiven. Selling, refinancing, transferring or otherwise triggering repayment before the required occupancy period can leave a balance due. Bond financing can also involve federal recapture-tax rules.
All 46 countiesRepeat buyers allowedFICO 640+

Palmetto Home Advantage

Palmetto Home Advantage is SC Housing's flexible mortgage program for first-time, move-up and repeat buyers. Official SC Housing materials describe conventional plus government financing options and forgivable DPA.

Published minimum FICO: 640. Current SC Housing program materials should be checked for the exact available DPA menu; agency materials have described options including 0%, 3%, 4% and 5% of the loan amount depending on product and market.

The DPA is structured as a 0% forgivable second mortgage with no monthly payments. SC Housing's program materials describe a 10-year term, with different first-mortgage rates applying depending on the amount of assistance selected.

More DPA can mean a different first-mortgage rate. The right comparison is not “Which option gives me 5%?” but “What is my payment and total cost with 0%, 3%, 4% or 5%?”
Rural / underserved counties

County First Initiative

SC Housing's County First Initiative is designed to increase homeownership investment in designated counties that historically receive less SC Housing mortgage activity. SC Housing's current program overview specifically notes additional down payment assistance for certain rural areas.

Published minimum FICO: current SC Housing product/first-mortgage matrix controls. Mortgage Navigator does not copy an old County First score or dollar amount into a 2026 guide unless the current annual program document supports it.

Geography and funding matter: County First is not a blanket statewide bonus. The property must be in an eligible county and current funds/terms must be verified at reservation.
SeasonalCommunity heroes

Palmetto Heroes

SC Housing's Palmetto Heroes program is a seasonal homebuyer initiative for defined public-service and military groups. Recent program materials have included teachers, nurses, law enforcement, correctional officers, firefighters, EMTs/paramedics, veterans, active-duty military and National Guard members.

The program historically pairs a competitive fixed-rate SC Housing mortgage with forgivable DPA. It is popular and prior annual allocations have filled within months.

Do not use last year's dollar amount as today's promise. Palmetto Heroes is released with annual/seasonal funding, rates, income limits, sales-price limits and DPA terms. Mortgage Navigator will show the current year's amount only after SC Housing publishes the active annual guide.

Charleston has property-specific affordable homeownership opportunities

CharlestonFirst-time buyer

City of Charleston Homeownership Initiative

The City of Charleston's Homeownership Initiative creates below-market homeownership opportunities through City partnerships and property subsidies. The City's current program page generally targets households earning 50%–120% of Area Median Income that have not owned a home in the previous three years and can qualify for a first mortgage.

These are not simply cash DPA dollars that can be applied to any MLS listing. The affordability is often tied to a specific City-supported home and recorded restrictions. The City describes a 90-year restrictive covenant to preserve affordability.

Example of why local research matters: In 2026 Charleston offered six Juniper Street townhomes with a $60,000 City subsidy already applied, producing a sales price just under $289,000 for qualifying 80%–120% AMI buyers. That was a specific development opportunity, not a universal $60,000 DPA program.

National programs South Carolina buyers should also check

National

National Homebuyers Fund

NHF multi-state assistance should be compared with SC Housing and local programs. Exact credit score, first-mortgage pricing and repayment/forgiveness depend on the current participating-lender product, so Mortgage Navigator does not assign one universal FICO where the official product does not.

National

Chenoa Fund

Chenoa Fund provides FHA DPA through approved lender partners and South Carolina is within its stated footprint. Current matrices control credit, pricing and second-mortgage terms.

South Carolina's biggest DPA lesson

South Carolina has multiple kinds of “help”: a traditional 15-year forgivable SC Housing second, a more flexible 10-year Palmetto Home Advantage second, seasonal Heroes assistance, rural/county enhancements, and local property subsidies. Those are not interchangeable.

Mortgage Navigator compares published FICO + DPA amount + first-mortgage rate + forgiveness timeline + geography + income limits + funding status.

Buying in South Carolina?

Let Josh check the statewide, rural and local layers.

Send the city/ZIP, purchase price, credit range, household income and occupation. Geography and occupation can materially change the programs worth checking.

Check My South Carolina DPA Options

Official sources