Is South Carolina Down Payment Assistance Forgivable? (2026)
Partly. The SC Housing Homebuyer Program's down payment assistance is forgivable, and Palmetto Home Advantage works a little differently. Here is the straight answer on what you repay and what you do not.
The straight answer
South Carolina’s main program offers forgivable help. Through the SC Housing Homebuyer Program, the down payment assistance is a second mortgage you do not repay as long as you stay in the home, it forgives over time. That is different from states where the down payment second is always a loan you pay back. For a first-time buyer whose barrier is cash, forgivable assistance is the most valuable kind, because you likely never repay it. Palmetto Home Advantage, the more flexible program, provides percentage-based assistance with its own terms.
Confirm the current amounts
Here is the honest caveat. SC Housing sets the exact down payment assistance amounts, the forgiveness schedule, and the income and price limits, and they change periodically. So rather than quote a figure that may be out of date, we confirm the current numbers directly with SC Housing before you plan around them. What does not change is the structure: the Homebuyer Program is forgivable, Palmetto Home Advantage is the flexible option, and first-generation buyers can add extra help.
The first-generation layer
One more piece worth knowing. On top of the forgivable Homebuyer Program, South Carolina runs a First-Generation Homebuyer Program, extra down payment help for buyers whose parents did not own a home. For a first-generation buyer, that can stack with the forgivable assistance to make ownership genuinely reachable. If you would be the first in your family to own, it is worth checking, see our First-Generation page.
Common questions
Is South Carolina down payment assistance forgivable?
The SC Housing Homebuyer Program's down payment assistance is forgivable, a second mortgage you do not repay as long as you stay in the home, forgiven over time. Palmetto Home Advantage provides percentage-based assistance with its own terms. Confirm the current amounts and rules at SC Housing.
Do you repay SC Housing down payment assistance?
The SC Housing Homebuyer Program's assistance is forgivable, so you do not repay it if you stay in the home. Palmetto Home Advantage terms vary. Confirm the current forgiveness rules with SC Housing before you plan.
What is the SC First-Generation Homebuyer Program?
It provides extra down payment help to first-generation homebuyers, buyers whose parents did not own a home, on top of the standard SC Housing assistance. Confirm the current amount and eligibility with SC Housing.
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