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How SC Home Offer Works and What to Know Before You Buy

By Constance Obi · Culture & Recreation Writer

What SC Home Offer Does

SC Home Offer is a down payment assistance program run by the South Carolina Housing Finance and Development Authority (SCFDA) that helps first-time homebuyers in South Carolina put money toward their purchase. The program provides a second mortgage—a loan you take out alongside your primary mortgage—that can cover part or all of your down payment and closing costs. You repay this second loan over time, usually interest-free or at a reduced rate depending on your income and the specific program option you choose.

The program is designed for people buying their first home or those who haven't owned a home in the past three years. It works with conventional loans, FHA loans, and VA loans, so you have flexibility in how you finance the rest of your purchase. The amount you can borrow through SC Home Offer varies, but the program caps the total purchase price of the home and your household income to keep assistance focused on moderate-income buyers.

Key Takeaways

  • SC Home Offer provides a second mortgage to cover down payment and closing costs, with terms that may include no interest or reduced interest depending on your income level.
  • You must be a first-time homebuyer or someone who has not owned a home in the past three years, and you must meet income limits set by the program.
  • The home you buy must fall within a maximum purchase price, and you will need to complete homebuyer education before closing.
  • Your primary lender must approve SC Home Offer as a second mortgage before you can move forward, so discussing it early in your mortgage process matters.
  • The program has different options—some with no interest, some with interest that adjusts over time—so comparing the terms available to you helps you choose the right fit.

Income Limits and Household Size

SC Home Offer sets income limits based on the area median income (AMI) for your county. These limits change yearly and vary by household size. Generally, your household income must fall at or below 80 percent of the area median income for your county, though some program options allow up to 100 percent AMI. The SCFDA publishes updated income limits each year, usually in the spring.

To find your county's current limits, contact SCFDA directly or ask your mortgage lender—they work with these numbers regularly and can tell you whether your household income qualifies. Income includes wages, self-employment earnings, Social Security, disability payments, and other regular sources. If you are married or have household members whose income counts, all of it factors into the calculation.

Maximum Home Purchase Price and Down Payment

The maximum purchase price for a home you buy through SC Home Offer depends on your county and changes annually. Most counties cap the purchase price between $250,000 and $350,000, though some rural areas allow higher amounts. SCFDA sets these limits to align with local housing markets, so a home that qualifies in one county may exceed the limit in another.

The down payment assistance itself can range from a small percentage of the purchase price to 100 percent of your down payment and closing costs, depending on which program option you choose and your income level. Some borrowers receive a grant (money you do not repay) for a portion of the assistance, while the rest comes as a second mortgage loan. Your lender will explain which combination applies to your situation once you are approved.

Homebuyer Education Requirement

Before you can close on your home, you must complete an approved homebuyer education course. This is a requirement of SC Home Offer, not optional. The course covers topics like budgeting, understanding your mortgage, maintaining your home, and avoiding predatory lending. Most courses run 8 to 12 hours and can be taken in person or online, depending on the provider.

SCFDA maintains a list of approved providers on its website. Many are nonprofits, community colleges, and housing counseling agencies throughout South Carolina. Some courses are free; others charge a fee, usually between $50 and $150. Your lender can point you toward providers in your area, and some may offer courses specifically timed to fit your closing schedule.

How to Start the Process

The first step is to contact a mortgage lender who works with SC Home Offer. Not all lenders participate, so asking upfront whether they offer the program saves time. Once you have a lender, tell them you are interested in down payment assistance through SC Home Offer. They will explain which program options you may be able to use based on your income, credit, and the home you plan to buy.

Your lender will submit your information to SCFDA for pre-approval. This is different from your mortgage pre-approval—it confirms that you meet the program's income and other basic requirements. Pre-approval typically takes one to two weeks. After pre-approval, you can shop for homes within the purchase price limit. Once you have an offer accepted, your lender will finalize the SC Home Offer loan terms alongside your primary mortgage.

The timeline from pre-approval to closing usually runs 30 to 45 days, depending on your lender and how quickly you complete the homebuyer education course. Your lender will coordinate with SCFDA to ensure the second mortgage is ready to fund at closing.

Program Options and Interest Rates

SC Home Offer offers several program options, each with different terms. Some options carry zero interest on the second mortgage, meaning you repay only the amount you borrowed. Others charge a reduced interest rate that may be fixed or adjustable. A few options include a grant component—a portion of the assistance you do not repay—paired with a second mortgage for the remainder.

The option available to you depends on your income level and the specific SCFDA program you may have access to for. Lower-income borrowers often have access to better terms, including zero-interest loans or larger grant amounts. Your lender will present the options you may have access to for and explain the monthly payment difference between each one. Comparing the total cost over the life of the loan helps you decide which option makes sense for your budget.

What Happens After Closing

After you close on your home, you own it outright—the second mortgage from SC Home Offer is simply another loan you repay, like your primary mortgage. Your monthly payment includes both mortgages. The second mortgage typically has a term of 10 to 30 years, depending on the program option you chose.

Some SC Home Offer loans include forgiveness provisions. If you meet certain conditions—such as staying in the home for a set number of years or maintaining a certain income level—a portion or all of the second mortgage may be forgiven (erased). Your loan documents will spell out whether forgiveness applies to your loan and what you need to do to may have access to. Keep your loan servicer informed of any major changes, such as a job loss or move, because they affect your obligations.

Frequently Asked Questions

Do I have to be a first-time homebuyer to use SC Home Offer?

You must be a first-time homebuyer or someone who has not owned a home in the past three years. If you owned a home more than three years ago but have not owned one recently, you may still may have access to. Your lender can confirm whether your ownership history meets the program's definition.

What if my lender does not work with SC Home Offer?

Ask your lender for a referral to one who does, or contact SCFDA directly for a list of participating lenders in your area. You can switch lenders during the pre-approval stage without penalty, so finding one that offers the program is worth the effort if you want down payment help.

Can I use SC Home Offer if I have bad credit?

SC Home Offer does not have its own credit score requirement, but your primary lender will. Most lenders require a credit score of at least 580 to 620 for FHA loans and higher for conventional loans. SC Home Offer works alongside your primary loan, so your lender's credit standards apply. Ask your lender what score they need and whether credit counseling might help if you are close.

What if the home I want to buy exceeds the purchase price limit?

You cannot use SC Home Offer for a home above the maximum purchase price for your county. You would need to find a home within the limit or pursue other down payment assistance programs. Your lender can tell you the current limit for your county and help you explore alternatives if needed.

Does SC Home Offer help with my mortgage payment if I fall behind?

SC Home Offer is a down payment assistance program, not a payment assistance program. It helps you buy the home upfront. If you struggle with payments after closing, contact your lender about loan modification options or reach out to a HUD-approved housing counselor for guidance on managing your mortgage.