SC Housing Down Payment Assistance Programs 2026
If you’re a first-time Charleston homebuyer, SC Housing’s down payment assistance program is one of the most under-utilized tools in the state. Here’s how the 2026 program works and how to use it.
What is SC Housing down payment assistance?
The South Carolina State Housing Finance and Development Authority (SC Housing) offers up to $15,000 in down payment and closing-cost assistance to eligible homebuyers. The assistance is structured as a forgivable second mortgage with 0% interest.
“Forgivable” means: if you live in the home for 10 years, the assistance converts to a grant (you owe nothing). If you sell or refinance before 10 years, you repay the assistance — no interest, no penalty.
2026 eligibility
- First-time homebuyer (haven’t owned a primary residence in the last 3 years)
- Primary residence only — no investment properties
- Income limits apply (Charleston County 2026: ~$93,000 for 1-2 person household, ~$108,000 for 3+ person)
- Purchase price limits (Charleston County 2026: $389,000 for existing homes; slightly higher for new construction)
- Minimum credit score 640
- Buyer must complete a HUD-approved homebuyer education course ($75-$125 typical, can be online)
How to use it with a Charleston home purchase
- Choose a participating lender. SC Housing partners with specific lenders — not every Charleston lender qualifies. List available at SC Housing.
- Get pre-approved. Your lender confirms eligibility for the SC Housing program in addition to the primary mortgage.
- Take the homebuyer education course. Usually 6-8 hours, online or in-person. Get the certificate.
- Shop for a home within the price cap. Charleston’s $389K cap is tight for many neighborhoods — works best in West Ashley, North Charleston (including Park Circle entry), parts of Summerville, Goose Creek, Hanahan.
- Close. The $15K assistance applies at closing — typically reducing your cash-to-close by that amount.
Where the $389K cap actually buys you a home in Charleston (2026)
- West Ashley: condo, smaller townhome, or 2BR fixer single-family
- North Charleston: real range of options including Park Circle entry-level
- James Island: very limited; mostly condos
- Mount Pleasant: essentially nothing
- Daniel Island: nothing
- Summerville: substantial inventory including newer construction
- Goose Creek/Hanahan: substantial inventory
Realistic outcome: most SC Housing buyers in Charleston metro land in West Ashley, North Charleston, Summerville, or Goose Creek.
Stacking with other programs
The SC Housing $15K can stack with:
- FHA 3.5% down loan — lowest-down-payment option for first-time buyers
- Conventional 3% down — slightly higher rate but no PMI after 80% LTV
- USDA loans — 0% down, available in qualifying rural areas around Charleston (parts of Berkeley County, parts of Dorchester)
- City of Charleston Affordable Housing Program — additional assistance for purchases in city limits
- Mortgage Credit Certificate (MCC) — annual federal tax credit for first-time buyers, can stack with SC Housing
The catch nobody mentions
SC Housing program demand exceeds supply most quarters. Funds are allocated and can run out. Apply early in your home search, not the day before closing.
The price cap also adjusts annually — if you’re shopping at the top of the cap, prices may exceed the cap by closing, disqualifying you.
Whether it’s worth it for you
If you’re buying a Charleston home under $389K and meet the income limits — yes, absolutely use it. $15K toward closing is real money. Especially valuable for buyers stretching to qualify.
If you’re shopping above $389K, the program doesn’t apply but the homebuyer education course is still worth taking for the financial knowledge.
Want help applying?
I work with first-time Charleston buyers through SC Housing all the time. Happy to walk you through the application steps, connect you with SC Housing-approved lenders, and identify properties that qualify.