The South Carolina housing market brings both opportunity and challenges for first-time home buyers. Even with recent price increases, there are still helpful programs and flexible options to make homeownership possible.
This guide breaks down what you need to know to qualify as a 1st time home buyer in South Carolina. Pre-qualify now or call 888-573-2640 to get started with Clear Rate Mortgage.
Who qualifies as a 1st time home buyer in South Carolina?
South Carolina's first-time home buyer assistance programs offer great opportunities to potential homeowners. Clear Rate Mortgage helps clients understand these qualification requirements and tap into valuable benefits.
Definition of a first-time buyer in SC
Many people think first-time home buyers in South Carolina must have never owned property before. The reality is quite different.
South Carolina uses HUD's definition which counts anyone who hasn't owned a primary residence in the three years before the purchase date.
This broader definition makes these programs available to more potential homeowners.
Special circumstances create exceptions if you have unique situations. Single parents and disabled borrowers might still qualify without meeting the three-year rule.
South Carolina's steadfast dedication to homeownership shows through these flexible options for different resident groups.
Income and credit score requirements
Your financial standing significantly affects your eligibility for South Carolina's first-time home buyer programs.
Clear Rate Mortgage's experience shows that credit requirements vary based on loan types:
- FHA loans need a minimum credit score of 620
- Conventional, VA, and USDA loans typically need a minimum score of 640
Each county sets different income limits. These range from $84,800 in Anderson and Spartanburg counties to $127,680 in Beaufort County.
These limits ensure help reaches those who need it most while accommodating various income levels.
Residency and property type rules
Your new property must be your primary residence when using South Carolina's first-time buyer programs. Clear Rate Mortgage points out that investment properties rarely qualify for these special programs.
South Carolina offers flexibility with eligible property types.
You can choose from:
- Site-built single-family homes
- Off-frame modular homes
- Townhomes and patio homes
- FHA-approved or conventional-approved condominiums
Properties must be located in South Carolina. Current purchase price limits stand at $425,000. This limit keeps these programs focused on entry-level and mid-market housing options.
Clear Rate Mortgage helps you understand these requirements clearly. Thanks to the three-year rule, many clients find they qualify as first-time buyers even after previously owning a home.
Loan options for first time home buyers in SC
Clear Rate Mortgage helps first-time home buyers in South Carolina discover the right loan programs that match their specific needs and situations.
We guide our clients through various options to help them find their path to homeownership.
FHA Loan: Low down payment option
South Carolina's first-time home buyers often choose FHA loans because they need as little as 3.5% down with a credit score of 580 or higher.
Buyers with scores between 500-579 can qualify if they put 10% down. FHA loans come with flexible qualification requirements for credit and income that make them more accessible than conventional loans.
VA Loan: For veterans and active military
VA loans give veterans and active military members the chance to buy homes with no down payment and no private mortgage insurance.
Service requirements include 90 days during wartime, 181 days during peacetime, or 6+ years in the National Guard or Reserves.
Our team at Clear Rate Mortgage knows these loans are a great benefit that comes with competitive interest rates.
USDA Loan: For rural homebuyers
Rural home buyers with low-to-moderate income can get USDA loans without any down payment. These loans come with competitive fixed interest rates that can be as low as 1% with payment assistance.
Buyers can spread their payments over 33 years, or 38 years for very low-income applicants.
Conventional loans with low down payment
Today's first-time buyers can get conventional loans with just 3% down. These loans need better credit scores than government-backed options but offer streamlined approval processes and might have lower mortgage insurance costs. Our team can help you decide if conventional financing matches your needs.
Jumbo Loan and when it applies
Buyers looking at higher-priced properties above conforming loan limits ($766,550 in South Carolina) need jumbo loans.
These loans require excellent financial credentials usually a credit score of 720+ and 10-20% down payment.
Rehab Loan and Fix & Flip options
The FHA 203(k) program lets buyers finance both their home purchase and renovation costs in one mortgage. We offer Standard 203(k) for major renovations and Limited 203(k) for projects under $75,000.
Investors can use specialized fix-and-flip financing that covers up to 90% of purchase price and all renovation costs.
Down payment and closing cost assistance programs
Home ownership dreams can become reality for many first-time buyers in South Carolina with help on down payment and closing costs.
Clear Rate Mortgage guides you through these great assistance options to reduce your upfront costs.
SC Housing Homebuyer Program
The SC Housing Homebuyer Program serves as the life-blood resource for future homeowners. You'll get forgivable down payment assistance with a zero percent interest rate and no monthly payments.
The assistance shows up as a second lien with a 15-year term. The best part? It's completely forgiven if you stay in your home the whole time.
Our team at Clear Rate Mortgage has watched this program help countless clients get past the hurdle of saving for upfront costs.
Palmetto Home Advantage
Palmetto Home Advantage gives you amazing flexibility with conventional, FHA, VA, and USDA loan options in all 46 South Carolina counties.
The program welcomes both first-time and repeat buyers, making it available to more people. You won't need monthly payments for the forgivable down payment assistance that comes with a 10-year term.
Our clients love the reduced mortgage insurance options for conventional loans.
County First Program
The County First initiative helps rural South Carolina communities with fixed-rate financing and forgivable down payment assistance.
Clear Rate Mortgage works with buyers to explore this program in counties like Abbeville, Bamberg, Chester, and others supporting first-time and move-up buyers who don’t currently own a primary residence.
Community Works assistance
Community Works provides forgivable loans to cover down payment and closing costs. The programs change based on your location; some are county based while others depend on your employer.
Our team has helped many clients connect with this valuable resource. It turns homeownership from a distant dream into an achievable goal.
Loan Options That Help You Save Over Time
The right mortgage doesn’t just get you into a home it can also help you save long term. Options like fixed-rate mortgages offer stable monthly payments, while refinance programs can lower your interest rate or reduce your term.
Clear Rate Mortgage helps first-time buyers in South Carolina choose loan solutions that align with their financial goals and provide real savings over the life of the loan.
Steps to apply and get approved
Getting your own home takes several important steps after you know you're eligible. Clear Rate Mortgage helps 1st time home buyers in South Carolina through this well-laid-out process.
Check your credit and financial readiness
Your first step is to analyze your credit report with care. SC Housing programs need a minimum credit score of 640. Your debt-to-income ratio should stay under 45%.
Look at your budget and money situation to figure out the home price you can handle. Your current debts, savings, and monthly expenses will help set a comfortable price range.
Get pre-approved by an approved lender
Finding a lender you can work with is your next significant step. Clear Rate Mortgage helps you get a pre-approval letter by checking your financial information.
You'll need this letter before you look at homes or make offers. The process needs your income and assets verified through tax returns, bank statements, and paychecks.
Complete homebuyer education course
SC Housing wants at least one borrower to finish a homebuyer education course. These courses stay valid for twelve months.
You can choose online platforms like Framework and Credit Smart or take classroom courses that meet National Industry Standards for Homeownership and Counseling.
Clear Rate Mortgage connects you with approved education providers.
Submit documents and finalize application
Your next step is to gather and submit these required documents:
- Most recent 3 years of tax transcripts (1 year for Targeted Counties)
- Proof of income and employment verification
- Bank statements showing available funds
- Photo identification and residency proof
Remember, files submitted after June 15th must include tax transcripts from the previous tax year.
Review Loan Estimate and Closing Disclosure
You'll get the Loan Estimate within three business days after submitting your application. This three-page document shows loan terms, interest rates, and estimated closing costs.
The five-page Closing Disclosure comes at least three business days before closing. Take time to compare these documents and make sure all terms match what you expect.
Clear Rate Mortgage: Guiding Every 1st Time Home Buyer in South Carolina
At Clear Rate Mortgage, we know that becoming a 1st time home buyer in South Carolina isn’t just about paperwork, it's about feeling ready, supported, and informed.
That’s why our team focuses on clear communication, fast follow-ups, and honest guidance tailored to you. We don’t overpromise. Instead, we focus on helping you understand your loan options and prepare with confidence, every step of the way.
Our goal is simple: to make your experience smooth and personal. From answering your first question to walking you through pre-approval, we’re here to help you move forward at your pace with zero pressure and full support. When you're ready, we’ll help you take the next step with ease.
Want to see what’s possible for you as a 1st time home buyer in South Carolina? Call us today at 888-573-2640 or pre-qualify now!
FAQs
1. Do first-time home buyers in South Carolina need a real estate agent?
Working with a real estate agent can help guide you through the home search and offer process. While not required, it’s often helpful to have someone familiar with local markets.
2. Can I apply for a first-time home buyer loan in South Carolina if I’m self-employed?
Yes, self-employed buyers can still qualify with the right documentation showing steady income. Lenders usually ask for proof of business activity and financial stability.
3. Are mobile or manufactured homes allowed for first-time home buyers in South Carolina?
Some programs may allow certain types of manufactured homes depending on how they’re built and placed. It’s important to check the specific loan or assistance program guidelines.
4. Can first-time buyers in South Carolina use gift funds for a down payment?
Yes, many programs allow gift funds from relatives or approved sources to help with upfront costs. You may need to show where the money came from and provide a simple letter.
5. What happens if I move or sell my home shortly after buying in South Carolina?
Some programs may have rules about how long you need to live in the home to keep certain benefits. Selling or moving too soon could mean paying back part of the assistance.
