Down Payment Assistance & Homebuyer Guide
Explore down payment assistance programs, credit guidelines, and step-by-step guidance tailored for buyers in Richland, Lexington, Kershaw, and Sumter counties.
Explore Down Payment Assistance Opportunities.
One of the biggest questions many homebuyers have is how much money they need upfront to purchase a home. Depending on your circumstances, there may be down payment assistance programs and other resources that can help make homeownership more accessible.
I've put together a guide covering assistance programs, loan options, eligibility considerations, and resources for buyers in Columbia and surrounding Midlands communities.
Inside the guide, you'll find information about:
- South Carolina down payment assistance programs.
- County-specific homebuyer assistance resources.
- Different types of mortgage loans.
- Potential grants and forgivable assistance.
- Common eligibility considerations.
- Questions to discuss with a lender.
What is Down Payment Assistance?
Down payment assistance (DPA) is help from a state, local, or lender program that lowers the cash you need to buy a home. It can cover your down payment, closing costs, or both. Some assistance never has to be repaid, and some is forgiven over time as long as you stay in the home. Here are the main types:
Grants
Money that does not need to be repaid.
Forgivable Loans
A 0% second mortgage forgiven over time as long as you live in the home.
Deferred Loans
Repayment is postponed until you sell, refinance, or move.
Low-Interest Seconds
Repaid monthly alongside your main mortgage.
Key Considerations to Keep in Mind
What to Expect When Buying a Home.
From your first conversation with a real estate agent to the day you receive your keys, understanding the homebuying process can help you feel more prepared for each stage.
Initial Consultation
Discuss your goals, timeline, and budget.
Mortgage Pre-Approval
Connect with a lender to understand your financing options.
Property Search
Explore homes that align with your needs and budget.
Offers and Negotiations
Navigate offers, counteroffers, and negotiations.
Inspection Period
Understand the property's condition and inspection findings.
Appraisal & Final Approval
Work through the lender's remaining requirements.
Closing Preparation
Prepare for your final walkthrough and closing.
Closing Day
Complete the purchase and receive your keys.
Why a Realtor
"I go beyond the transaction."
Buying a home is one of the biggest financial investments of your life, and it can be exhausting without the right guide. A Realtor who is knowledgeable about the market, thorough, and attentive to detail is key.
Agents are obligated to put their clients' interests first, bring strong negotiating skills, know the neighborhoods, and dig deep into the online databases to get you the best possible deal on the home you want.
Loan Types & Financing Comparison
Explore how different mortgage options compare in down payment requirements, credit guidelines, and key program features.
| Loan | Min. Down | Typical Credit Score | Good to Know |
|---|---|---|---|
| FHA | 3.5% | 580+ (500–579 with 10% down) | Flexible on credit. Mortgage insurance is required and typically lasts the life of the loan with under 10% down. |
| Conventional | 3% – 5% | 620+ typical | Best rates with higher scores. PMI is required with under 20% down. You can ask your lender to cancel it once you reach 80% of the home's original value, and it ends automatically at 78% if you are current on payments. |
| VA | 0% | No VA minimum; lenders often 580–620 | Veterans, active duty, and eligible spouses. No monthly PMI. |
| USDA Guaranteed | 0% | Lenders often want 640+ | Eligible rural/suburban areas; income limits apply. |
| USDA Direct | 0% | No set minimum; credit history reviewed | For low and very-low income buyers; subsidized rates. |
*Scores listed are typical guidelines. Each lender sets its own overlays, so your exact requirement may be higher.
Down Payment Assistance Near You
Tap your county to see what applies.
SC Housing Homebuyer Program
Available in every SC county. A fixed-rate FHA, conventional, USDA, or VA mortgage paired with forgivable down payment help, based on available funds. No monthly payments on the assistance, and you live in the home 15 years for it to be fully forgiven. Homebuyer course required. Price limit $450,000.
Palmetto Home Advantage
Not just for first-timers: move-up and repeat buyers qualify. Conventional, FHA, VA, or USDA. No home price limit. Statewide income limit $140,000. 0% interest, no monthly payment on the DPA.
Made It Home!
$25,000 in forgivable help toward your down payment and closing costs (0% interest, no monthly payment) on select new-construction homes from approved builders, including D.R. Horton, Gainey Construction, McGuinn Homes, and Oak and Ave Property Group. Limited to 130 homes and based on available funds. Homes must be $200,000 or less, with at least 1,200 sq ft, 3 bedrooms, and 2 baths.
Palmetto Heroes
For teachers, nurses, law enforcement, firefighters, EMTs, veterans, and active-duty military. This program opens only during certain times of the year, and funds can run out quickly. Ask me or your lender about the next opening.
Richland County (RCHAP)
HUD-funded help for down payment, closing costs, or principal reduction. Home must be a single-family detached house in unincorporated Richland County. Must meet HUD income limits and be a first-time buyer (or no home in 3 years).
City of Columbia: City Lender I
A City of Columbia loan program for buyers purchasing a single-family home inside Columbia city limits. The down payment is just $500, and the structure is designed to avoid monthly private mortgage insurance. Loans are offered through the City's partner lenders.
Lexington County Homebuyer Assistance
Down payment and closing cost help for low-to-moderate income first-time buyers purchasing in Lexington County (including Irmo, Chapin, Cayce, West Columbia, and more). Price limits: $233,000 existing, $295,000 new. County holds second lien and inspects the home. Pre-screening first. Call (803) 785-8121.
FHLBank Atlanta Grants
Grants you apply for through a participating bank or credit union, never directly. Options include up to $17,500 for first-time buyers, up to $20,000 for educators, health care workers, first responders, and military households, and up to $15,000 for incomes just above the low-income range.
Chenoa Fund (FHA)
Down payment help paired with an FHA loan, for first-time and repeat buyers. Choose forgivable (0% interest, no monthly payment, forgiven after 36 on-time mortgage payments) or repayable (a 10-year second with a monthly payment).
Lender-Specific Programs
Many lenders offer their own DPA options, such as Essex, which pairs an FHA first mortgage with a second mortgage covering the down payment for eligible buyers. Guidelines, credit requirements, and availability differ by lender and can change, so a program one lender offers may not be available at another. Contact me and I'll connect you with lenders who can walk you through what you qualify for.
NACA Purchase Program
A nonprofit homeownership program that advertises no down payment, no closing costs, and no monthly mortgage insurance. Qualification looks at your payment history and budget, and you complete NACA workshops and counseling first. You still make regular monthly mortgage payments. The program lowers what you pay upfront rather than giving you free money.
Builder Incentives
Many builders offer closing cost help or lender incentives, and some participate in SC Housing programs like Made It Home!. Offers are builder-specific and change often.
At a Glance
Compare top assistance amounts and forgiveness timelines side by side to quickly evaluate which programs fit your goals.
Maximum Assistance by Program
*Palmetto Home Advantage shown as 4% of a $300,000 loan for illustration. Actual amounts vary.
How Long Until It's Forgiven?
*Typical time you live in the home. Selling, moving, or refinancing early may require repayment.
The 10 Commandments of Buying a Home
- Thou shalt not change jobs, become self-employed, or quit your job.
- Thou shalt not buy a new vehicle (or you may be living in it!).
- Thou shalt not charge cards excessively or let your cards fall behind on monthly payments.
- Thou shalt not spend money you have set aside for closing.
- Thou shalt not omit debts or liabilities from your loan application.
- Thou shalt not buy furniture (not yet anyway).
- Thou shalt not originate any inquiries into your credit.
- Thou shalt not make large deposits without checking with your loan officer.
- Thou shalt not change bank accounts.
- Thou shalt not co-sign a loan for anyone.
Also avoid opening a new cell phone account, and check with your lender before paying off collections or taking out new student loans.
I am happy to suggest lenders, inspectors, and insurance agents, but the choice is always yours. I receive no compensation for recommendations. Reach out and I'll share my trusted lender list.
Quick Check
Do You Qualify?
Check off items above to assess your readiness.
Helpful Checklists for Your Homebuying Journey.
Preparing to purchase a home involves gathering documents, keeping track of important deadlines, and staying organized throughout the process. Click below to open your interactive pre-approval or closing checklists.
Mortgage Pre-Approval Checklist
Lenders may ask for different documents, so confirm with yours that nothing else is needed.
Contract-to-Closing Checklist
30–45 days milestone tracker from contract to keys.
As soon as you are under contract
Three weeks before closing
Two weeks before closing
One week before closing
The day of closing, bring
Frequently Asked Questions
Understanding key real estate terms and steps can make your homebuying journey smoother. Click any category or question below to view the details.
Pre-qualification is a quick estimate based on what you tell a lender. Pre-approval means the lender has verified your income, credit, and assets, so sellers take your offer seriously.
It depends on the loan: 0% (VA, USDA), 3% (conventional), 3.5% (FHA). With DPA, some buyers bring only a few hundred dollars plus earnest money.
A contract outlining the services your agent provides and how they are compensated, so you know exactly what to expect.
Appraisal about $550–$800; inspection from $395; earnest money about 1% of price (credited toward your down payment at closing). Closing costs vary by loan and lender.
- Which loan and assistance options fit me?
- Are assistance funds open, and who reserves them?
- What is my full monthly payment?
- How much cash do I need at closing?
- When is the assistance forgiven if I sell or refinance?
You Don't Have to Figure It Out Alone.
Reading about the homebuying process is a great place to start, but every buyer's circumstances are different. If you have questions about purchasing a home, down payment assistance, or getting started, I'd love to hear about your goals.
Let's talk about where you are in the process and what steps may make sense for you.