Down payment assistance in South Carolina
South Carolina's primary statewide down payment assistance program, run by South Carolina State Housing Finance and Development Authority (SC Housing). Numbers and eligibility reflect the program's published 2025 guidelines.
SC Housing Forgivable DPA
Forgivable second- Maximum assistance
- $10,000 forgivable second mortgage
- Income limit
- Up to $134,560 (varies)
- Home price limit
- Up to $400,000
- First-time buyer
- Required
- Eligible loan types
- FHA, VA, USDA, Conventional
- •Fully forgiven after 10 years.
- •Pairs with the SC Housing Homebuyer Mortgage program.
How South Carolina DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. South Carolina's SC Housing Forgivable DPA pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
South Carolina's primary statewide DPA is SC Housing Forgivable DPA from South Carolina State Housing Finance and Development Authority (SC Housing). $10,000 forgivable second mortgage. Many South Carolina cities and counties also run additional DPA layered on top.
Yes. The SC Housing Forgivable DPA requires that you have not owned a primary residence in the past 3 years. Veterans and target-area buyers are sometimes exempt.
Yes. SC Housing Forgivable DPA works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
Usually no. Deferred and forgivable loans typically have no monthly payment, so most lenders do not include them in your DTI calculation.
If you sell or refinance before the forgiveness period ends, you typically have to repay the unforgiven portion.