South Carolina Home Loans 2026 — Complete Guide
The number people miss: South Carolina assesses owner-occupied primary residences at just 4% of market value, but second homes, rentals, and vacation properties are assessed at 6% — a 50% higher tax base for the identical house. File your Legal Residence special assessment application the moment you close, or you may default to the higher rate.
South Carolina Down Payment Assistance — SC Housing Programs
The South Carolina State Housing Finance and Development Authority (SC Housing) offers down payment assistance through Palmetto Home Advantage, open to both first-time and repeat buyers.
Palmetto Home Advantage
What makes this program different: Unlike most state DPA programs, Palmetto Home Advantage does not require first-time buyer status — a move-up buyer who owned a home recently but lacks cash for a new down payment can still qualify. Minimum credit score is typically 640, and the assistance is fully forgivable if you meet the program's occupancy period.
Are you a teacher, nurse, firefighter, police officer, correctional officer, EMT, paramedic, veteran, or Guard member? SC Housing's 2026 Palmetto Heroes Program offers $10,000 in forgivable down payment assistance specifically for public service workers, but funding is first-come, first-served and has historically been exhausted within months of its March launch. Check the Hero Home Loan Programs hub and select South Carolina before defaulting to Palmetto Home Advantage if you qualify.
Eligibility & Income Limits
Both programs require using an SC Housing-approved lender, completing homebuyer education, and meeting county-specific income and purchase price limits.
Confirm your exact county limit and current program terms at SCHousing.sc.gov before applying.
Current Rates
| Product | Rate | Source |
|---|---|---|
| 30-yr Conventional | 6.55% | Freddie Mac PMMS, week of July 16, 2026 |
| 15-yr Fixed | 5.93% | Freddie Mac PMMS, week of July 16, 2026 |
| SC Housing first mortgage | Below market | Confirm current rate with an SC Housing-approved lender |
2026 Loan Limits by County
Most of South Carolina's 46 counties sit at the national FHA floor, with coastal counties around Charleston carrying a higher limit due to elevated home values.
| Loan Type | Standard Counties | Charleston-Area Counties |
|---|---|---|
| FHA | $541,287 | Up to $690,000 |
| Conventional (Conforming) | $832,750 statewide | |
| VA | No county limit for buyers with full entitlement | |
Verify your exact county's FHA limit at HUD.gov before house-hunting.
Property Tax in South Carolina — The 4% vs. 6% Split
What Buyers Should Budget For
South Carolina's property tax is genuinely among the lowest in the country for owner-occupants, largely because Act 388 eliminated school operating taxes on primary residences (funded instead through a statewide sales tax increase) and because the 4% owner-occupied assessment ratio is a fraction of the 6% applied to second homes and rentals. Filing your Legal Residence special assessment — separate from the Homestead Exemption, despite the similar-sounding name — locks in the lower 4% rate; without filing, your home defaults to the higher 6% ratio. Counties reassess every five years, with a 15% cap on how much your assessed value can increase between reassessments for properties that have not changed hands. The separate Homestead Exemption for residents 65 and older, permanently disabled, or legally blind exempts the first $50,000 of value from all property tax — combined with the already-low 4% ratio, this can eliminate most or all of a qualifying senior's bill.
Pick Your Loan Type
Frequently Asked Questions
Bottom Line: South Carolina offers genuinely low property tax for owner-occupants, but only if you file the Legal Residence assessment after closing — it is not automatic. Palmetto Home Advantage's openness to repeat buyers is unusual among state DPA programs, and public service workers should check Palmetto Heroes early given how quickly its funding has historically been claimed.
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