Short answer: Palmetto Home Advantage is SC Housing’s statewide mortgage program for first-time, move-up and repeat buyers. It pairs a conventional, FHA, VA or USDA first mortgage with an optional forgivable second mortgage that helps with the down payment and closing costs. You do not have to be a first-time buyer, there is no sales price cap, the home can be in any of South Carolina’s 46 counties, every option needs a credit score of at least 640, and there is one statewide income cap that does not change with household size. The assistance is not a grant: it is forgiven only if you keep living in the home for the required period, and the balance comes due if you sell, refinance or move out before then. SC Housing’s other route, the Homebuyer (Bond) Program, uses county income and price limits, focuses on first-time buyers and carries a longer forgiveness period.
This guide is for buyers in Columbia, Greenville, Charleston and the towns around them who keep hearing “SC Housing” and want to know which program, if any, belongs on their list. It explains how the two state options differ, who each one tends to fit, the city and county programs that exist next to them in all three metros, and the questions to ask before you build an offer around assistance. Every program detail comes from SC Housing, its master servicer’s lender summary, or the city and county agencies that run the local programs. Sources and the date we checked them are listed at the end.
What is Palmetto Home Advantage?
Palmetto Home Advantage is a non-bond program run by the South Carolina State Housing Finance and Development Authority, which brands itself SC Housing. SC Housing does not lend to you directly. You apply through one of its approved lending partners, and Lakeview Loan Servicing acts as the program’s master servicer, so lenders follow both SC Housing’s program guide and Lakeview’s product matrices. According to SC Housing’s program page and its October 2026 flyer, the program:
- Offers conventional, FHA, VA and USDA first mortgages, with the conventional option delivered under Fannie Mae’s HFA Preferred and Freddie Mac’s HFA Advantage products.
- Has no first-time homebuyer requirement, so move-up and repeat buyers can use it.
- Covers new and existing homes in all 46 counties, with no sales price limits beyond whatever the loan type itself sets.
- Requires a minimum credit score of 640 on every option.
- Uses one statewide borrower income limit that SC Housing says is not based on total household income and does not depend on family size.
- Offers forgivable down payment assistance at SC Housing’s published tiers, including a no-assistance option for buyers who only want the first mortgage.
- Gives conventional borrowers below Fannie Mae and Freddie Mac’s area median income threshold reduced mortgage insurance coverage.
Lakeview’s lender summary adds the practical rules: it is for purchases only, the home must be owner-occupied, eligible homes include one and two unit properties, condos, townhomes and planned unit developments, manufactured homes are eligible on the conventional and FHA options only, and at least one borrower must complete homebuyer education even if nobody on the loan is a first-time buyer.
One thing to know before you rely on an online summary: SC Housing’s own pages do not currently agree on the income cap. The program web page still lists an older statewide figure, while the October 2026 flyer and the 2026/2027 limits chart (effective for reservations on and after June 1, 2026) show a higher one. Ask your lender which figure they are underwriting to on the day you apply, and keep in mind that SC Housing says limits can change with or without notice.
How the assistance works, and why it is not free money
The down payment help is a second mortgage, not a gift. SC Housing and Lakeview both describe it as a forgivable loan at zero interest that is “not a grant.” It is recorded behind your first mortgage at closing and is forgiven if you remain the owner-occupant through the forgiveness period. SC Housing’s program guide says the assistance must be paid in full if you sell, refinance, transfer the home or it stops being your primary residence before it matures. In practice that means:
- A quick refinance is expensive. If market conditions improve and you want to refinance soon after closing, the payoff of the assistance has to be part of the new loan or paid in cash.
- A job move matters. Selling early means paying back what has not yet been forgiven, which comes out of your sale proceeds.
- Renting the home out ends the deal. Converting the home to a rental is a change in primary residence, so plan for repayment before you move out.
- It is for closing, not for cash. The assistance covers the down payment and closing costs. SC Housing’s guide says any excess is handled by reducing the first mortgage, not paid out to the buyer.
The exact size of each assistance tier and the forgiveness schedule are in SC Housing’s current flyer and program guide. Because those terms change, we link to them below instead of repeating them here, and your Loan Estimate will show the actual figures for your file.
Palmetto Home Advantage or the Homebuyer (Bond) Program?
SC Housing runs two families of purchase programs, and you may qualify for more than one. The agency’s own advice is to let an approved lending partner compare them for you. Here is how they differ on the points buyers ask about most.
| Palmetto Home Advantage | Homebuyer (Bond) Program | |
|---|---|---|
| Who it focuses on | Moderate income buyers, first-time or not | First-time buyers, plus eligible repeat buyers in targeted counties |
| Income limit | One statewide cap, not tied to household size | Set by county and household size |
| Home price limit | None from SC Housing; loan type limits still apply | County home price limit on the SC Housing chart |
| Down payment assistance | Tiered, forgivable second mortgage, with a no-assistance option | A set amount on a forgivable second mortgage |
| Forgiveness period | Shorter | Longer (SC Housing describes a lien forgiven after the full term) |
| Minimum credit score | 640 on every option | Per SC Housing and the loan type; ask your lender |
| Where to read the rules | Program page, flyer and program guide | Homebuyer Program page and the county limits chart |
The bond program also has community lending options SC Housing lists separately, such as County First loans in economically distressed targeted areas, Families with Disabilities loans and First Generation homebuyer loans. SC Housing’s page shows its Palmetto Heroes option for teachers, nurses, first responders, military members and veterans as closed for 2026, and its 2026/2027 limits chart notes that the SC Mortgage Credit Certificate program ended June 30. If someone tells you to “get the MCC” this year, ask them to show you a current source.
Who should look at Palmetto Home Advantage
- Move-up and repeat buyers. If you have owned a home recently and do not live in a targeted county, the bond program is usually off the table, while Palmetto Home Advantage has no first-time requirement.
- Buyers shopping above a county price limit. The bond program caps the home price by county. Palmetto Home Advantage has no SC Housing price cap, which matters most in Charleston County and the Greenville suburbs, where many listings sit above bond limits.
- Larger households near the income line. Because the Palmetto cap is the same no matter how many people live in the home, a household whose income is above a bond limit for its county may still fit under the statewide cap. Compare both with your actual income.
- Buyers who want a manufactured home or a duplex. Both are eligible on specific loan types, which narrows the field compared with some local programs that are limited to single-family homes.
- Buyers who plan to stay put. Forgiveness only works if you keep living in the home. If you expect to be there through the forgiveness period, the repayment trigger is less likely to matter.
Who should think twice
- Credit under 640. Every Palmetto option needs at least that score, so a buyer below it should look at standard FHA or work on credit first. Our FHA loan page explains how FHA treats credit.
- A likely move or refinance soon. Military families with orders on the horizon, people relocating for work and anyone expecting to refinance should run the repayment numbers before choosing assistance. VA buyers also have the VA program’s own down payment rules to compare against, which our VA loans in Charleston page covers.
- Buyers with enough cash. If you can cover the down payment and closing costs yourself and keep healthy reserves, the no-assistance option or a regular conventional loan may be simpler. Ask for a side-by-side Loan Estimate.
- Investors and second-home buyers. The program is for owner-occupied homes only.
Columbia: SC Housing’s home market, plus City Lender programs inside the city
SC Housing is based in Columbia, but the agency’s programs apply statewide, so a Columbia buyer gets the same Palmetto terms as anyone else. What changes is the local layer and the county limits. On the 2026/2027 chart, both Richland and Lexington counties are listed as non-targeted for the bond program, which means repeat buyers there generally look at Palmetto Home Advantage rather than the bond route.
Inside the City of Columbia, the Community Development Department runs its own homebuyer lending. Its 2026 Annual Action Plan describes City Lender I/Uplift and City Employee Loan programs that work through partner banks and credit unions, offer low down payment options without private mortgage insurance, and are supported by City Housing staff who are certified homeownership and credit counselors. Because these programs use federal HOME funds, the plan explains that buyers sign a written agreement with an affordability period and a recapture provision if they stop occupying the home. These city programs are separate from SC Housing, have their own income and price rules, and are limited to the city’s partner lenders, so ask Community Development whether a city loan or a Palmetto loan fits your situation better. If you are a first-time buyer, our first-time home buyer guide for Columbia walks through the steps, and the Columbia, SC mortgage broker page covers loan options across the Midlands, including Lexington.
Greenville: the city line decides which county program you can use
Greenville County is non-targeted on SC Housing’s bond chart, so repeat buyers again tend to land on Palmetto Home Advantage. The local detail that trips people up is the city line. CommunityWorks, a Greenville-based community lender, administers the Greenville County Homebuyer Assistance Program for first-time buyers (or buyers who have not owned a home in three years) at or below the program’s area median income limit. That program covers new and existing homes in Greenville County, but it states plainly that homes inside the City of Greenville are not eligible. It also requires a homebuyer workshop through the Greenville County Human Relations Key Program, a minimum personal investment and an affordability test on the monthly housing cost, and it says assistance from the Greenville County Redevelopment Authority is forgiven over time while some CommunityWorks funds must be repaid on sale.
Inside the city, CommunityWorks also runs the City of Greenville Employer Assisted Homebuyer Program, which is only for City of Greenville employees with at least a year of service who are in good standing. Eligible employees can buy in Greenville County or a neighboring county such as Anderson, Pickens, Spartanburg, Laurens or Abbeville. So a buyer looking at a house in Simpsonville, Mauldin or Greer may have a county option, a buyer looking downtown may not, and a city employee may have a third path. Our first-time home buyer guide for Greenville and the Greenville, SC mortgage broker page cover the Upstate in more detail, along with Simpsonville.
Charleston: county limits differ on each side of the Ashley and the Cooper
The Charleston area is where SC Housing’s two programs split most sharply. On the 2026/2027 chart, Charleston County is non-targeted, while Berkeley and Dorchester counties are targeted. That means a repeat buyer looking in Summerville or Goose Creek may still be able to use the bond program, while the same buyer looking in West Ashley, James Island or Mount Pleasant generally cannot. The chart also lists higher income limits for Berkeley and Dorchester than for Charleston County, though the home price limit is the same across all three. Since many Charleston County listings sit above the bond price limit, Palmetto Home Advantage’s lack of a price cap is often the deciding factor there.
The City of Charleston runs its own Homeownership Initiative through the Department of Housing and Community Development. It was adopted in 2000, serves low and moderate income households within the program’s area median income band who have not owned a home in three years, and preserves affordability by recording a 90-year restrictive covenant on each home. The city says 133 households have bought through it, and in 2026 it has been taking applications on a first come, first qualified basis for the new Juniper Street townhomes in West Ashley through its online portal. A covenant like that limits future resale price, so read it closely and compare it with the simpler resale rules of a Palmetto loan. The Charleston Area Urban League, a HUD-certified housing counseling agency, also offers homebuyer education and city-partnered assistance for first-time buyers purchasing inside Charleston city limits. For next steps, see the Charleston, SC mortgage broker page, and for the Berkeley and Dorchester side, our Summerville and Goose Creek pages.
Can you combine state and local assistance?
Sometimes, but do not assume it. Each program sets its own layering rules, and the first mortgage investor also limits how many liens and how much combined financing a loan can carry. Greenville County’s program, for example, caps the total of bank mortgages against the appraised value and does not allow cash back at closing. Ask both the local agency and the lender, in writing, whether the two programs can sit on the same file before you count on both.
How to get started, step by step
- Check your credit. Pull your reports and confirm you are at or above the 640 minimum with room to spare, since a new inquiry or a late payment before closing can move your score.
- Total your income the way the program does. Use SC Housing’s current chart and ask the lender which income counts toward the cap, especially if more than one person will be on the loan.
- Take homebuyer education early. At least one borrower needs it for Palmetto, and local programs in Greenville County and Charleston have their own course requirements. One course may not satisfy every program, so ask before you enroll.
- Confirm the lender is an approved SC Housing lending partner. SC Housing keeps a Find a Lender list. Not every lender offers every SC Housing product, and a broker can only place your file with an approved partner.
- Ask for two Loan Estimates. One with assistance and one without, so you can see the effect on cash to close, mortgage insurance and the monthly cost before you decide.
- Write the repayment trigger into your plans. Note the date the assistance is forgiven and what you would owe if you sold or refinanced before then.
- After closing, file for South Carolina’s legal residence assessment. Owner-occupants can apply with their county for the lower legal residence ratio. Our guide to applying for the legal residence assessment shows how it works in York and Lancaster counties, and the process is similar elsewhere.
For a wider look at what you will pay at the table, see our guide to closing costs in North and South Carolina, and use how much house can I afford to set a budget before you reserve any assistance.
Frequently asked questions
Do I have to be a first-time buyer for Palmetto Home Advantage?
No. SC Housing says the program has no first-time homebuyer requirement and is open to first-time, move-up and repeat buyers.
Is Palmetto Home Advantage down payment assistance a grant?
No. It is a forgivable second mortgage at zero interest. It is forgiven if you keep living in the home for the required period, and the balance is due if you sell, refinance, transfer the home or stop living there before then.
What credit score do I need?
SC Housing lists a minimum credit score of 640 for every Palmetto Home Advantage option. Some property types, such as manufactured homes, can carry stricter rules on Lakeview’s matrices.
Is there a home price limit?
SC Housing sets no sales price limit for Palmetto Home Advantage, though the loan type you choose still has its own limits. The bond program does have county home price limits.
Does household size change the Palmetto income limit?
No. SC Housing says the Palmetto cap is not based on total household income and is not dependent on family size. The bond program’s limits do vary by county and household size.
Can I use it in Charleston, Columbia and Greenville?
Yes. Palmetto Home Advantage is available in all 46 South Carolina counties. Local city and county programs are separate and have their own boundaries, such as Greenville County’s program excluding homes inside the City of Greenville.
Sources
- SC Housing, Palmetto Home Advantage and Palmetto Home Advantage Program Flyer (October 1, 2026)
- SC Housing, Palmetto Home Advantage Program Guide (effective August 11, 2026)
- SC Housing, 2026/2027 Income and Home Price Limits, Programs for Homebuyers, SC Housing Homebuyer Program and Find a Lender
- Lakeview Loan Servicing, South Carolina Housing Program lender summary
- City of Columbia Community Development, City Lender Programs and 2026 Annual Action Plan (draft)
- CommunityWorks, Down Payment Assistance Loans (Greenville County Homebuyer Assistance Program and City of Greenville Employer Assisted Homebuyer Program)
- City of Charleston, Homeownership Initiative and Housing and Community Development
- Charleston Area Urban League, First-Time Homebuyer Program
Sources reviewed November 10, 2026. Program terms, income limits and funding change often, and SC Housing says its limits can change without notice, so confirm current terms with SC Housing, the local agency and your lender before you make an offer. This article is general information, not legal or tax advice.
1st Advantage Mortgage Broker LLC, Company NMLS #2468711. Equal Housing Lender. General information only, not a commitment to lend. Loans are subject to credit approval, property appraisal and program eligibility. Program rules and funding change, so confirm current terms with us.