South Carolina homebuyer guide
Buy a primary residence with a down payment as low as 3.5%, if eligible. Here’s what lenders review and how to compare the cash and monthly costs.
Educational guidance. Approval and terms depend on your finances, the property, current policy, and lender requirements.
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What lenders review
Federal FHA guidelines apply throughout South Carolina. Lenders may have additional requirements.
HUD’s credit guidelines allow maximum purchase financing at 580 or above, with as little as 3.5% down. Scores of 500–579 are limited to 90% loan-to-value, generally requiring 10% down when price and adjusted value match.
These are FHA baselines. Ask us which credit tiers are available; meeting a minimum does not guarantee approval.
The lender reviews documented income and your debt-to-income ratio: monthly debts, including the proposed housing payment, divided by qualifying gross income.
Example: $2,600 in total monthly debt ÷ $6,000 income = 43.3% DTI. This illustrates the calculation, not an approval cutoff.
Prepare income records, account statements, debt details, and documentation for any permitted gift. Your income type and underwriting determine additional documents or reserves.
The home generally must be your primary residence, meet FHA property standards, and fit the county and unit-count loan limit.
Policy reference: HUD Handbook 4000.1. Current policy and lender availability must be checked for your purchase.
A $300,000 purchase example
At 3.5% down, the down payment is $10,500. Here’s how fees, credits, and an earlier deposit affect what remains due.
$300,000 × 3.5%, assuming eligibility and an appraisal supporting the price.
Illustrative closing fees, insurance, taxes, and escrow. These are example amounts, not a local cost estimate.
Assumed seller/lender credits; availability and program limits apply.
Assumed earnest money credited at settlement.
Total buyer cash is $16,500, including the earlier $2,000 deposit.
Illustration, not a quote or Loan Estimate. Assumes the 1.75% upfront MIP from HUD’s published premium schedule is fully financed: $289,500 base loan + $5,066.25 MIP = $294,566.25 starting loan. Check the applicable current schedule.
2026 FHA limits
These national floor amounts apply to 2026 FHA case numbers. Some counties have higher limits: look up your property’s county.
Source: HUD’s 2026 announcement; figures verified August 3, 2026. County, unit count, and case-number date determine the applicable limit.
Before choosing a home
Project or single-unit approval may be needed. HUD’s condo checklist includes association finances, insurance, flood information, and legal documents.
Safety, structural, or condition issues can affect approval. Ask whether repairs are needed before closing or whether renovation financing may fit.
Foundation, title, zoning, acreage, mixed use, or access may need additional review.
Owner occupancy, rental-income treatment, reserves, and property condition require review.
Compare the complete cost
Compare the same home, purchase date, and ownership period. Look at cash to close, the full housing payment, and mortgage insurance.
FHA generally has upfront and annual MIP. Under HUD’s published schedule, annual MIP generally lasts for the mortgage term above 90% original LTV, or 11 years at 90% or less. Check loan-specific rules. Reaching 20% equity does not automatically cancel it.
Compare conventional financing for potentially different costs and PMI cancellation rules. Any future refinance depends on eligibility and its costs.
VA financing may offer no down payment for eligible military borrowers. USDA financing depends on household income, property, and location eligibility.
Other questions
No. Repeat buyers may qualify too. Existing FHA financing, occupancy, and your finances still need review.
A permitted gift may help with purchase funds. The lender must review its source and documentation before you rely on it.
Your business income needs documentation and underwriting review. Ask which tax returns and business records are needed for your situation.
FHA is generally for a primary residence. An owner-occupied two- to four-unit home is different from a non-owner-occupied rental and needs additional review.
A client’s experience
He was straightforward with us, kept us informed throughout the entire process, and, most importantly, followed through on everything he told us he would do.
William Vaigneur · Google review excerpt
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Your next step
We can compare estimated cash to close, monthly payment, mortgage insurance, and property requirements for your home purchase.
Benji Gecy, NMLS #302188 · Beaufort Lending, NMLS #1703543 · Equal Housing Lender
