South Carolina Down Payment Assistance

Palmetto Home Advantage at a glance

Palmetto Home Advantage eligibility, in plain English

• Credit: a 640 minimum score on every option. Your loan type can add requirements.
• Income: SC Housing lists a $140,000 statewide limit for Palmetto Home Advantage for 2026/2027. It counts the borrowers' income, not everyone in the household, and does not change with family size.
• Buyer history: no first-time buyer requirement. Move-up and repeat buyers qualify.
• Location and price: all 46 counties, with no program sales price limit. The home still has to fit the limits of your loan type (for example, FHA county limits).
• Occupancy: purchase of your primary residence only. No investment properties or second homes.
• Education: program materials from Lakeview Loan Servicing, SC Housing's servicing partner for this program, state that homebuyer education is required for at least one borrower, even for repeat buyers.

Palmetto Home Advantage vs. SC Housing Homebuyer

The two programs serve different buyers. Palmetto Home Advantage has a higher, simpler income limit, no program price cap, and no first-time buyer rule, with assistance that scales with your loan size and forgives over 10 years. The Homebuyer program offers a flat $10,000 with a longer 15-year forgiveness term, but tighter county income limits and a price cap.

On a lower-priced home, $10,000 may beat 3% or 4% of the loan. On a higher-priced home, the percentage usually wins. The first mortgage terms differ too, so the full picture matters, not just the assistance amount.

How to apply for SC Housing assistance

1. 1

   Check the basics

   Confirm your score is 640 or higher and estimate your qualifying income. Use the affordability calculator to see a comfortable price range.

2. 2

   Talk to me about eligibility

   SC Housing programs are offered only through its approved lending partners. As a broker, I confirm whether one of my wholesale lenders participates before recommending a Palmetto Home Advantage loan, and I compare it with the Chenoa Fund and a standard low-down loan.

3. 3

   Take the homebuyer course

   Get the required education done early so it never slows down closing.

4. 4

   Compare 0%, 3%, and 4%

   More assistance lowers your cash to close but can change the first mortgage pricing. Compare options with the program compare tool and on a call with me once a participating lender is confirmed.

5. 5

   Reserve and close

   After you are under contract, the lender reserves the program. Your SC closing attorney handles both loans at closing.

Common questions.

• What down payment assistance can Keith place in South Carolina?

  The Chenoa Fund, from CBC Mortgage Agency. It pairs an FHA 30-year fixed loan with a second mortgage for 3.5% or 5% of the sales price or appraised value, whichever is less, and in South Carolina the minimum assistance amount is $5,000. There are no income limits and no first-time buyer requirement, the home must be your primary residence (1 to 2 units), and credit and underwriting requirements apply. Program terms and availability change with market conditions, so I confirm current terms for your file before you count on it.

• Do I have to repay the Chenoa Fund?

  On the forgivable option, no, as long as you make the first three years of on-time payments on the FHA loan. It has 0% interest and no monthly payment, but refinancing the FHA loan during those first three years can cancel the forgiveness. The repayable option is a 10-year second mortgage with a monthly payment.

• How much is Palmetto Home Advantage down payment assistance?

  You can choose 0%, 3%, or 4% of the total first mortgage loan amount, including any financed FHA premium, VA funding fee, or USDA guarantee fee. It is a 10-year forgivable second mortgage at 0% interest with no monthly payment.

• Do I have to pay back SC Housing down payment assistance?

  Only if you sell, refinance, or stop using the home as your primary residence before the second mortgage matures. For Palmetto Home Advantage that term is 10 years. For the SC Housing Homebuyer program it is 15 years. Stay through the term and it is forgiven.

• Do I have to be a first-time buyer in South Carolina?

  Not for Palmetto Home Advantage. SC Housing states it has no first-time homebuyer requirement and is open to first-time, move-up, and repeat buyers in all 46 counties.

• What credit score do I need for SC Housing?

  SC Housing lists a 640 minimum credit score for all Palmetto Home Advantage options. Your loan type and lender may have additional requirements.

• What is the Palmetto Home Advantage income limit?

  SC Housing's 2026/2027 limits document lists a $140,000 statewide borrower income limit, effective for reservations on and after June 1, 2026. It is based on the borrowers' income, not total household income, and does not depend on family size. We confirm the current figure when you apply.

• Is there a price limit on Palmetto Home Advantage?

  SC Housing states there are no sales price limits on Palmetto Home Advantage, though your loan still has to meet the limits of its loan type. The separate SC Housing Homebuyer program lists a $450,000 home price limit in its 2026/2027 limits document.

• Can I use Palmetto Home Advantage with a VA or USDA loan?

  Yes. The program offers conventional, FHA, VA, and USDA options. With VA or USDA, which can already be $0 down, the assistance usually goes toward closing costs and prepaid items.

• Is Keith an SC Housing approved lender?

  I am a mortgage broker, not a lender, and SC Housing programs are offered only through its approved lending partners. Before recommending an SC Housing option, I confirm whether one of my wholesale lenders participates for your file, so treat it as an option to ask about rather than a promise. The down payment assistance I can place is the Chenoa Fund on an FHA loan, and I compare the options side by side.