How much do you really need for a down payment in NC and SC?

If you are buying in North Carolina or South Carolina, you have probably heard you need 20% down. That number is common advice, not a rule. Plenty of Carolina buyers close with far less. The better question is not "what is the minimum percentage" but "how many dollars do I need in the bank, all in, to close and still sleep at night?" That is what this post answers.

If you want the programs compared side by side, I cover that in low-down-payment loans: 0%, 3%, 3.5%, and 5% compared. If you already know you are going FHA, see FHA down payment requirements in North Carolina.

The Minimum Down Payment Depends on the Loan

Here is the short version:

• VA and USDA: $0 down for buyers who meet eligibility (service history for VA; property location and household income for USDA).
• Conventional: as little as 3% down on certain first-time buyer and lower-income options, with 5% common otherwise.
• FHA: 3.5% down with a 580 or higher credit score, or 10% down with a score from 500 to 579.

None of these is automatic. Underwriting still looks at your credit, income, debts, assets, and the property.

Your Real Number Is Cash to Close, Not Down Payment

The down payment is only one line on the check you bring to closing. Your full cash to close usually includes:

1. Down payment, based on your loan program and price.
2. Closing costs, such as lender fees, the appraisal, title insurance, recording, and the closing attorney's fee. Both North Carolina and South Carolina closings are handled by attorneys, so that fee is a normal line item.
3. Prepaid items, including your first year of homeowners insurance, an initial deposit into escrow for property taxes and insurance, and interest from closing day to month end.
4. Money you put up front, like earnest money. In North Carolina, the standard offer form also includes a due diligence fee paid directly to the seller. Both are usually credited toward your purchase at closing, but the due diligence fee is generally not refundable if you walk away for most reasons.

Then there is the number most buyers forget: the cushion you want left over after you get the keys. Buying with every last dollar can work on paper, but a water heater or a job gap in month three hurts a lot more with nothing in savings.

A Worked Example (Hypothetical Numbers)

These figures are made up to show the math, not a quote. Say you are buying a $300,000 home as your primary residence.

• 0% down (VA or USDA, if eligible): $0
• 3% down (eligible conventional options): $9,000
• 3.5% down (FHA): $10,500
• 5% down (conventional): $15,000
• 20% down (conventional, no mortgage insurance): $60,000

Now say, purely for illustration, your Loan Estimate showed $8,000 in closing costs and prepaid items. On the FHA path, your all-in need before any help would be about $18,500, plus the cushion you want to keep. On the 20% path, it would be about $68,000. Your actual closing costs come from your Loan Estimate for your price, county, and loan, which is why I build this number with you instead of using a rule of thumb.

How Down Payment Assistance Changes the Math in NC and SC

Down payment assistance can take a real bite out of that cash to close.

The Chenoa Fund (both states)

The Chenoa Fund, which I can pair with an FHA loan, provides down payment assistance of 3.5% or 5% of the price as a second mortgage. The forgivable option has 0% interest and no monthly payment, and it is forgiven after three years of on-time payments on your FHA loan. There is no income limit and no first-time buyer requirement. Refinancing in those first three years can cancel the forgiveness, and program terms change with market conditions, so I confirm current terms for your file before you count on it. In South Carolina, the minimum assistance amount is $5,000.

Both states also run statewide housing agency programs, summarized below. State housing agency programs are offered only through participating lenders. As a broker, I confirm whether one of my wholesale lenders participates before recommending one, so treat them as options to ask about rather than a promise.

North Carolina

The North Carolina Housing Finance Agency offers the NC Home Advantage Mortgage, with assistance of up to 3% of the loan amount for first-time and move-up buyers. Eligible first-time buyers (no home owned as a principal residence in the past three years) and military veterans may qualify for the NC 1st Home Advantage Down Payment of $15,000. NCHFA lists a 640 minimum credit score and an income limit of $158,000 for NC Home Advantage. The assistance is a second mortgage that is forgiven 20% per year at the end of years 11 through 15, and repaid if you sell, refinance, or transfer the home before then. Details are on my North Carolina down payment assistance page.

South Carolina

SC Housing's Palmetto Home Advantage offers 0%, 3%, or 4% of the first mortgage amount as a forgivable second mortgage with a 10-year term, 0% interest, and no monthly payment. It works in all 46 counties, has no first-time buyer requirement, lists a 640 minimum credit score, and has a $140,000 statewide borrower income limit for 2026/2027. SC Housing also runs a separate Homebuyer program with $10,000 of assistance forgiven over 15 years, with county income limits and a price limit. See my South Carolina down payment assistance page.

What that looks like (hypothetical)

Using made-up numbers again: with the Chenoa Fund, 3.5% assistance on a $300,000 price is $10,500, which matches the FHA down payment. For the state programs, on a $290,000 loan, 3% assistance would be $8,700 and 4% would be $11,600. The trade-off is that assistance loans can carry different first mortgage pricing, and repayment or lost forgiveness can be triggered if you sell or refinance early, so I compare the with-assistance and without-assistance options side by side.

Other Ways to Lower What You Bring

• Gift funds from family can cover some or all of the down payment on most programs when documented correctly. See gift funds for a down payment: rules by loan type.
• Seller concessions can cover closing costs within each program's cap. See seller concessions and cash to close in the Carolinas.
• Choosing a USDA-eligible area can mean $0 down if your household income qualifies. Many towns outside the metro cores qualify, so check the address on the USDA loan page.

When Putting More Down Makes Sense

Twenty percent down on a conventional loan avoids private mortgage insurance, and more down lowers your loan amount and payment. On conventional loans with less than 20% down, you can request PMI cancellation at 20% equity, and it ends automatically at 22% under federal law, so a smaller down payment is not a permanent penalty. The right answer often lands in the middle: enough down to keep the payment comfortable, not so much that you drain your safety net.

Does It Matter Where in the Carolinas You Buy?

Program rules are national or statewide. What changes locally is the price, property taxes, insurance, and how competitive offers are. A condo in Charlotte or Raleigh, a coastal home near Charleston with flood insurance, or a house outside Greenville that might qualify for USDA can each produce a very different cash to close at the same price.

Common Mistakes

• Saving for 20% for years when a low-down path fits today
• Forgetting closing costs and prepaids in the savings goal
• Draining savings to zero to hit a bigger down payment
• Moving money around right before applying without keeping statements
• Assuming you earn too much for assistance. The Chenoa Fund has no income limit, and state programs have their own limits worth checking.

Next Step

Run a rough price range with the affordability calculator, then let's build your real all-in number together. Schedule a free consultation and I will show you the down payment, closing costs, and cushion for the two or three options that fit.