South Carolina Down Payment Assistance + FHA Loan
An FHA loan needs 3.5% down. SC Housing can help cover it with forgivable assistance or a percentage-based option. Here is how the two fit together.
Why FHA pairs with SC Housing
FHA is a common first-time-buyer loan because it allows a 3.5% down payment and is flexible on credit. SC Housing pairs with it, so the down payment assistance, forgivable through the Homebuyer Program or percentage-based through Palmetto Home Advantage, can help toward that 3.5% down payment and closing costs, depending on the current SC Housing amount. A buyer with a 640 credit score can get into a Columbia, Greenville, or Charleston home without draining savings. First-generation buyers may add extra help on top.
How it stacks
Two loans work together. The FHA first mortgage is your primary loan, with its usual mortgage insurance. SC Housing’s assistance sits on top. With the forgivable Homebuyer Program, it is a second you do not repay if you stay; with Palmetto Home Advantage, it is percentage-based help. The FHA loan behaves like any FHA loan either way. We confirm the current amounts with SC Housing so you know exactly what the assistance covers.
Who this fits
The FHA pairing fits many first-time South Carolina buyers. Repeat buyers should use Palmetto Home Advantage. First-generation buyers should check the First-Generation program. And veterans should compare the VA pairing, which needs no down payment.
Program facts verified August 2026 against SC Housing and HUD FHA guidance. This is not a commitment to lend. Related: DPA + VA · Eligibility.
Common questions
Can SC Housing assistance cover an FHA down payment?
Yes. FHA requires a 3.5% minimum down payment, and SC Housing's down payment assistance, forgivable through the Homebuyer Program or percentage-based through Palmetto Home Advantage, can go toward it plus closing costs. A 640 credit score is required.
What credit score do I need for an FHA loan with SC Housing?
A 640 minimum credit score. The assistance pairs with FHA, VA, USDA, or conventional first mortgages, and first-generation buyers may add extra help.
Is SC Housing assistance repaid on an FHA loan?
It depends which program. The SC Housing Homebuyer Program's assistance is forgivable, you do not repay it if you stay. Palmetto Home Advantage terms vary. Confirm the current rules with SC Housing.
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