Many borrowers want to know how South Carolina down payment assistance works on a home loan. They are concerned that income limits and county rules may affect their home loan review. This guide explains what lenders may look for so you can move forward with confidence.
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Whose Income Counts for South Carolina Down Payment Assistance?
SHORT ANSWER
South Carolina counts only the income of the people signing the loan, not everyone living in the house. The limit is $135,750 and it does not change with family size, which is unusual among state assistance programs and can decide whether you qualify. Smart Loan Savings Educational Content
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| South Carolina Down Payment Assistance Detail | The Rule or Amount |
|---|---|
| Whose income South Carolina counts | Only the people responsible for the loan |
| Does family size change South Carolina’s income limit | No |
| South Carolina borrower income limit | $135,750 |
| Palmetto Home Advantage assistance amount | 0%, 3%, or 4% of the loan amount |
| Monthly payment on South Carolina assistance | None, and the rate is 0% |
| Minimum credit score for South Carolina assistance | 640 |
| Ownership test in a non-targeted South Carolina county | No principal residence owned in the past 3 years |
| Ownership test in a targeted South Carolina county | You must not own a home at closing |
| Palmetto Heroes assistance amount | $10,000, forgivable |
| Maximum home price on the SC Homebuyer Program | $425,000 |
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| South Carolina Assistance Rule | How This Rule Works on Your South Carolina Home Loan |
|---|---|
| Only the Borrowers’ Income Counts | Most state assistance programs measure everyone living in the house, and the limit tightens or loosens with family size. South Carolina does neither. The agency states that its income limit is $135,750, that it is not based on total household income, and that it is not dependent on family size. Its own announcement puts the reason plainly, saying limits are now based only on the income of the person or persons responsible for the loan. So an adult child, a parent, or a partner who lives in the home but does not sign the note has no income counted against you. This is one of several South Carolina factors worth understanding before you shop, and the rest are covered in our South Carolina mortgage guide. |
| A Recent Sale Disqualifies You in Some Counties Only | Sell a house 2 years ago and buy in Greenville, and South Carolina turns you down. Buy in a targeted county instead and you qualify. The state runs two different first-time buyer rules and your county decides which one you face. In 12 non-targeted counties, including Charleston, Greenville, Richland, and York, you must not have held an ownership interest in a principal residence in the 3 years before closing. Everywhere else the test is simply whether you own a home at the time your loan closes. Past ownership does not matter there. That single difference can change where it makes sense to shop. How lenders verify what you own is covered in our guide to documents you need for mortgage approval. |
| Assistance Comes at 0% With Nothing Due Monthly | South Carolina structures its help as a deferred second mortgage at 0% interest with no monthly payment. Palmetto Home Advantage offers 0%, 3%, or 4% of the loan amount and carries no sales price limit at all, which is rare. The separate Homebuyer Program caps the purchase price at $425,000. Forgiveness is not automatic on either one. The agency states that you must occupy the property for the full term for the lien to be forgiven, without publishing that term on its program pages. Ask your loan officer how long you have to stay, because that number decides what the assistance actually costs you if your plans change. |
| A Housing Voucher Can Help You Qualify | South Carolina runs something most states do not. Its Housing Choice Voucher homeownership program lets a family currently renting with a voucher apply that same housing assistance payment toward buying instead. The agency describes it as using federal assistance that would otherwise go to a landlord to purchase and build equity in a home of their own. Paired with the state’s regular program, it reaches 30-year fixed FHA financing with forgivable assistance in all 46 counties, and the voucher payment itself helps the borrower qualify. That turns a rental subsidy into buying power rather than ending it at the closing table. |
| What Else Shapes Your South Carolina Payment | Down payment assistance covers what you owe at closing. It does not change what you owe every month afterward. Your payment carries principal, interest, property taxes, and homeowners insurance, and a lender measures that full amount against your income. South Carolina taxes a home you live in at 4% of its value rather than 6%, and exempts it from school operating taxes entirely, though both benefits require an application. How that works is covered in our guide to South Carolina legal residence tax rate. |
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| What Lenders Check | How South Carolina Assistance Rules Affect Your Loan File |
|---|---|
| Who Signs the Note | Only a borrower’s income counts toward the $135,750 limit, so adding someone to the loan adds their income to that measurement. |
| Your Credit Score | All program options require a minimum 640, and the agency notes that meeting it does not by itself guarantee loan approval. |
| Where the Home Sits | Targeted and non-targeted counties apply different ownership tests, so the same buyer can qualify in one South Carolina county and not another. |
| Who Conducts Your Closing | South Carolina closings are handled by an attorney, and your loan officer works with one who regularly closes files in that area. A borrower who already has a preferred attorney can usually request them instead. |
| Your Property Type | Eligible homes include site-built single-family dwellings, off-frame modular homes, patio and townhomes, and approved condominiums. |
| Your Down Payment | Conventional financing reaches 97% loan to value on one unit and 95% on two units, with reduced mortgage insurance coverage below 80% of area median income. |
| Your Occupation | Teachers, nurses, first responders, veterans, and National Guard members reach a separate program offering $10,000 in forgivable assistance. |
| Your Homebuyer Training | Everyone receiving down payment assistance completes a homebuyer training course before loan approval, arranged through your lending partner. |
| Sources Used on This Page | SC Housing, Homebuyer Program and Homeownership Program Handout | SC Housing, Palmetto Home Advantage | SC Housing, Palmetto Heroes | SC Housing, Housing Choice Voucher Homeownership Program |
| South Carolina home loan guidelines follow federal program standards. Individual lender rules may apply and vary by program. This page is provided for educational purposes only. Smart Loan Savings Educational Content | |
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| Main Loan Types | Primary Income & Target Qualification Fit |
|---|---|
| Conventional Loans | Standard W-2 income with strong credit profiles. |
| FHA Loans | Flexible down payments and lower credit score requirements. |
| VA Loans | Exclusive 100% financing for military veterans and families. |
| Jumbo Mortgages | High-balance luxury financing exceeding standard loan limits. |
| DSCR Loans | Real estate investor solutions qualifying purely on property cash flow. |
| HELOC Options | Borrowers leveraging existing home equity for flexible cash lines. |
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| People Also Ask | Why These Questions Matter |
|---|---|
| Does everyone in the household count toward South Carolina’s income limit? | The agency states that its $135,750 limit is not based on total household income and does not depend on family size. Only the income of the people responsible for the loan is counted. |
| Can you get South Carolina assistance if you sold a house recently? | It depends on the county. Twelve non-targeted counties require that you have not owned a principal residence in the past 3 years. Everywhere else the only test is whether you own a home at closing, so a recent sale does not disqualify you. |
| Can a housing voucher help you buy in South Carolina? | The state runs a Housing Choice Voucher homeownership program that lets a voucher holder apply the same assistance payment toward a purchase, and the payment helps the borrower qualify for financing. |
| Explore Our Learning Center | What You’ll Find Inside |
|---|---|
| Mortgage Basics Guide | Simple explanations of core terms like principal, interest, escrow, and PMI |
| Income and Employment Requirements | How income, self-employment, bonuses, and job gaps affect your approval |
| Credit & Approval | Credit score requirements, how to improve your score, and how lenders approve a file |
| Homebuying Tips | Preparing for a mortgage, choosing the right program, and avoiding common mistakes |
| Loan Comparisons | Side-by-side comparisons to help you see which loan program actually fits |
| Refinance Guides | Rate-and-term, cash-out, and streamline refinance options explained plainly |
| Loan Program Guides | In-depth guides to Conventional, FHA, VA, USDA, Jumbo, and more |
| State-Specific Mortgage Info | Local rules, programs, and agencies for your specific state |