SC Housing Homebuyer, Palmetto Home Advantage and Palmetto Heroes in 2026 — Palmetto Passage
Updated October 2026
South Carolina down payment assistance can reduce the savings needed to buy, but the program name alone does not tell you the payment or repayment obligations. Compare SC Housing Homebuyer, Palmetto Home Advantage and Palmetto Heroes using the actual first mortgage, assistance agreement and available funding for your purchase.
Understand the three program routes
SC Housing Homebuyer combines qualifying mortgage financing with assistance opportunities subject to program requirements. Income, purchase price, buyer status and property location can affect eligibility.
Palmetto Home Advantage offers another assistance route through participating lenders. Its eligibility rules and first-mortgage options should be checked separately rather than assumed to match Homebuyer.
Palmetto Heroes provides targeted opportunities for qualifying groups such as teachers, first responders, veterans and nurses. Occupation or service eligibility does not eliminate the remaining mortgage and program requirements, and funding availability matters.
| Question | Why it matters |
|---|---|
| Which program and first mortgage are being reserved? | Assistance terms depend on the specific pairing |
| Is assistance percentage-based or fixed-dollar? | The available amount changes your cash requirement |
| What triggers repayment? | Selling, refinancing or moving may affect forgiveness |
| Is funding currently available? | Eligibility alone does not reserve assistance |
Use SC Housing for current program materials and lender participation information.
Compare assistance against the full loan cost
Available structures can include forgivable, 0% assistance, with offerings expressed as 4% or 5% of the first mortgage or as fixed-dollar assistance. Do not assume every percentage, forgiveness period or program can be combined.
Ask for the assistance balance, forgiveness schedule, occupancy requirement and treatment upon early payoff in writing. Zero interest does not automatically mean immediate forgiveness or unrestricted cash at closing.
Compare a loan with assistance against a similar loan without it. Review the interest rate, mortgage insurance, lender charges and monthly payment, not just the amount brought to closing. The Consumer Financial Protection Bureau explains how to compare Loan Estimates.
Reserve enough for South Carolina ownership costs
Assistance does not erase insurance premiums, attorney-supervised closing expenses or initial escrow deposits. An approved primary residence receives the 4% assessment ratio and exemption from school operating taxes; an unapproved account may initially reflect the more expensive 6% treatment.
Coastal properties may require separate wind and flood premiums, increasing both upfront expenses and ongoing escrow. Build those figures into the closing cost estimator, then test the recurring payment with the monthly payment calculator. For the broader loan comparison, review South Carolina mortgage options.
Compare Current Mortgage Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
SC Housing Homebuyer, Palmetto Home Advantage and Palmetto Heroes in 2026 — 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.