Overview

Buying a first home in South Carolina in 2023 remains challenging as home prices and mortgage rates push monthly costs higher. To help close the affordability gap, the South Carolina State Housing Finance and Development Authority (SC Housing) continues to operate its SC Housing Homebuyer Program, which bundles a 30-year fixed-rate mortgage with forgivable down payment assistance for qualified first-time buyers.

This guide walks through how SC Housing's main 2023 offering works, who qualifies, and what steps buyers should take to apply.

SC Housing Homebuyer Program (Primary Statewide Option)

The flagship program from SC Housing in 2023 is the SC Housing Homebuyer Program. It is designed for first-time homebuyers — defined as someone who has not owned a principal residence in the previous three years — as well as certain qualified veterans and buyers purchasing in designated targeted counties.

Key features in 2023 include:

A 30-year, fixed-rate first mortgage originated through SC Housing's network of participating lenders.
A forgivable down payment assistance (DPA) loan that can be used for down payment, closing costs, and prepaid items.
Income limits and purchase price limits set by SC Housing, which vary by county and household size.
A requirement that buyers complete an approved homebuyer education course before closing.

The DPA typically carries a 0% interest rate and is forgiven over a set period, provided the buyer continues to occupy the home as a primary residence and does not refinance or sell during that period. Because terms can be updated, buyers should confirm the current assistance amount and forgiveness schedule with SC Housing or a participating lender.

Who Qualifies

To be eligible for SC Housing's 2023 first-time homebuyer assistance, applicants generally need to:

Meet the definition of a first-time buyer, be an eligible veteran, or purchase in a targeted area.
Fall within SC Housing's published income limits for the county and household size.
Buy a home priced at or below the program's purchase price limit.
Use the home as their primary residence.
Meet credit and debt-to-income standards set by the participating lender and loan product (such as FHA, VA, USDA, or conventional).
Complete an approved homebuyer education course.

Because eligibility specifics — including exact income caps, purchase price limits, and DPA amounts — can change during the year, applicants should verify the current figures directly with SC Housing.

How To Apply

SC Housing does not originate loans directly. Instead, buyers work with a participating lender:

Review program basics on the SC Housing website and confirm you likely meet income and first-time buyer rules.
Contact an SC Housing-approved participating lender from the official list.
Get pre-qualified and discuss which SC Housing product and DPA option best fits your situation.
Complete an SC Housing-approved homebuyer education course.
Find a home that meets the program's purchase price and property requirements.
Close through your participating lender, with the DPA funded at closing.

Other Assistance To Explore

Beyond the statewide SC Housing Homebuyer Program, South Carolina buyers in 2023 may also want to check:

Local city and county down payment assistance programs, where available.
USDA Rural Development loans for eligible rural areas of the state.
VA loan benefits for qualifying service members and veterans.
Employer-assisted housing and nonprofit homebuyer programs.

These can sometimes be layered with SC Housing's assistance, subject to each program's rules.

Bottom Line

For most first-time buyers in South Carolina in 2023, the SC Housing Homebuyer Program is the central piece of the assistance puzzle — offering a stable fixed-rate mortgage plus forgivable down payment help. Because program details can shift, the best next step is to confirm the latest terms with SC Housing and connect with a participating lender early in the home search.

South Carolina First-Time Homebuyer Grants: 2023 Programs Guide