Myrtle Beach, Conway and Horry County Mortgage Hub: Primary vs Vacation Loans and Insurance — Palmetto Passage
Updated October 2026
A Myrtle Beach condo, a Carolina Forest primary residence and a Conway rental can have similar asking prices but very different financing requirements. In Horry County, occupancy classification, condominium eligibility and insurance often explain more of the payment difference than the advertised mortgage rate. Decide how you will actually use the property before requesting loan comparisons.
Primary, second home or investment property
A primary residence is where you genuinely intend to live. Second-home financing has its own occupancy and property requirements; a rental-focused purchase should not be presented as a vacation home merely to seek better terms. Condotel features, rental arrangements and project financial conditions can also restrict conventional financing.
South Carolina tax treatment adds another distinction. Approved primary legal residences receive a 4% assessment ratio and a 100% school operating tax exemption. Second homes and investment properties generally receive a 6% ratio without that exemption. Their tax bills can often run 2.5 to 3.5 times the approved legal-residence amount, depending on the parcel.
Review the framework through the South Carolina Department of Revenue and request a county estimate for your intended use rather than relying on the seller’s current bill.
Quote coastal insurance before the offer
Homeowners insurance, wind/hail protection and flood coverage are distinct budget components. Where eligible and necessary, SCWHUA may provide wind/hail coverage, but it does not replace flood insurance. Socastee and inland locations can also face flood exposure; distance from the beach is not a sufficient risk test.
- Obtain property-specific wind deductibles and premiums.
- Check the flood determination and lender coverage requirements.
- For condos, review master insurance, unit coverage and association assessments.
- Confirm which premiums enter escrow and which charges remain separate.
Run the monthly payment calculator with those figures before comparing communities.
Use the correct limits and closing assumptions
The 2026 one-unit conforming limit is $832,750 statewide. FHA limits are county-specific: the national floor is $541,287, while the Charleston-North Charleston metro has an elevated limit. That Charleston figure should not be substituted for Horry County’s applicable limit. Check HUD FHA Mortgage Limits for the property’s county.
South Carolina requires closing attorney supervision. Allow for insurance prepayments and escrow deposits, not just lender fees. Explore Grand Strand flood zones and USDA considerations if your search extends north or inland, and compare cash requirements with the closing cost estimator.
Compare Current Mortgage Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
Myrtle Beach, Conway and Horry County Mortgage Hub: Primary vs Vacation Loans and Insurance — Choose a mortgage by comparing eligibility, upfront cash and total monthly costs, not the advertised rate alone. Conventional, FHA, VA and USDA serve different borrowers. Confirm county limits, taxes, insurance and lender requirements before comparing personalized Loan Estimates for your household.
Historical 2025 one-unit comparison: conforming $832,750; FHA floor $541,287. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
- SC Housing — state housing finance and property tax authority.
- South Carolina Department of Revenue — state housing finance and property tax authority.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.