South Carolina's mortgage market has its own distinct rules — from closing customs to transfer tax structure to the specific down payment programs available through the state's housing finance agency. This guide covers what's genuinely different about buying in South Carolina, not just the generic national mortgage process.
South Carolina at a Glance
Est. payment: $1,785/mo
Est. payment: $3,386/mo
Est. payment: $2,319/mo
Estimated payments assume 5% down, 6.82% 30-year fixed rate, plus $150/month insurance. Your actual payment will vary by lender, credit score, and specific property tax rate.
How South Carolina Closings Work
South Carolina requires an attorney to conduct closings and issue the title opinion — one of the states with a strict attorney requirement, typically adding $500-$800 to closing costs.
Transfer tax: $1.85 per $500 of sale price (deed recording fee), typically paid by seller.
The South Carolina Property Tax Quirk You Should Know
South Carolina taxes owner-occupied primary residences at a dramatically lower assessment ratio (4% of value) than second homes, rentals, or commercial property (6%) — meaning if you're purchasing a South Carolina property as anything other than your primary residence, your effective tax rate will be roughly 50% higher than the primary-residence figures quoted here.
South Carolina's Down Payment Assistance Program
SC Housing Palmetto Home Advantage, SC Housing DPA
Palmetto Home Advantage combines a competitive fixed rate with down payment assistance available as either a 0% deferred loan or (for a small rate premium) an outright grant that never requires repayment — buyers can choose the structure that fits their long-term plans.
USDA Rural Eligibility in South Carolina
Outside the Columbia, Charleston, and Greenville-Spartanburg metro areas, most of South Carolina — including much of the Pee Dee and Lowcountry regions — qualifies for USDA financing.
Mortgage Loan Limits in South Carolina
| Loan Type | Limit | Down Payment |
|---|---|---|
| Conventional (Fannie/Freddie) | $766,550 | 3–20% |
| FHA (SC) | $766,550 | 3.5% |
| VA (eligible veterans) | No limit (full entitlement) | 0% |
| USDA (eligible rural areas) | No set limit | 0% |
Frequently Asked Questions
South Carolina requires an attorney to conduct closings and issue the title opinion — one of the states with a strict attorney requirement, typically adding $500-$800 to closing costs.
South Carolina's transfer tax structure: $1.85 per $500 of sale price (deed recording fee), typically paid by seller. This is typically disclosed on your Closing Disclosure and paid at settlement.
Palmetto Home Advantage combines a competitive fixed rate with down payment assistance available as either a 0% deferred loan or (for a small rate premium) an outright grant that never requires repayment — buyers can choose the structure that fits their long-term plans.
Outside the Columbia, Charleston, and Greenville-Spartanburg metro areas, most of South Carolina — including much of the Pee Dee and Lowcountry regions — qualifies for USDA financing.
Sources for This Page
- Freddie Mac PMMS — national rate benchmark
- HUD FHA Mortgage Limits — SC loan limit data
- USDA Rural Development Eligibility — South Carolina rural zone verification
- South Carolina state Housing Finance Agency — program terms and current DPA availability