Myrtle Beach Low Down Payment Purchase Programs
If you're low on down payment funds, we've got programs for that.
Low Down Payment Home Loans in Myrtle Beach: 0%, 3%, and 3.5% Options Compared
Myrtle Beach homebuyers have four legitimate paths to purchase with little or no down payment. VA loans offer $0 down for eligible veterans and service members with no mortgage insurance ever. USDA loans provide $0 down for buyers in eligible Horry County communities. Conventional HomeReady and HomePossible programs require 3% down with cancellable PMI. FHA loans require 3.5% down with a 580+ credit score. Beaufort Lending compares all four programs and identifies which saves you the most money over the life of the loan — not just upfront.
Four Low Down Payment Options for Myrtle Beach Buyers
Each low-down-payment program has a different qualification path, cost structure, and geographic limitation. Understanding all four options — and how they interact with Myrtle Beach's specific market — is the only way to make an informed decision.
VA Loan — $0 Down, No PMI
The strongest mortgage product available. Active-duty service members, veterans, and surviving spouses who meet VA service requirements qualify for $0 down with no monthly mortgage insurance — ever. The VA funding fee (2.15% first use, financed into the loan) replaces PMI and is waived entirely for veterans with service-connected disability ratings. For eligible Myrtle Beach buyers, there is no better option.
- $0 down payment
- No PMI — permanent benefit
- Credit score: ~580+ in practice
- No loan limit for full entitlement
USDA Loan — $0 Down, Eligible Areas
USDA Rural Development loans offer $0 down for buyers purchasing in eligible Horry County communities. Coastal Myrtle Beach proper is not eligible, but many inland Grand Strand communities qualify — including Conway, Loris, Aynor, and Galivants Ferry. Income limits apply (approximately $110,650 for a household of 1–4 in Horry County). The annual guarantee fee of 0.35% is significantly cheaper than FHA MIP.
- $0 down payment
- 0.35%/yr guarantee fee (cancellable)
- Credit score: ~640+ in practice
- Property and income limits apply
Conventional — 3% Down, PMI Cancels
Fannie Mae HomeReady and Freddie Mac HomePossible programs allow first-time buyers to purchase with 3% down if household income is at or below 80% of area median income. PMI is required but cancels automatically at 80% LTV — unlike FHA MIP, which is permanent on low-down-payment loans. For buyers with 620+ credit who want to eliminate mortgage insurance within a few years, conventional 3% programs often win long-term.
- 3% down payment
- PMI cancels at 80% LTV
- Credit score: 620+ required
- Income ≤ 80% AMI (HomeReady/HomePossible)
FHA Loan — 3.5% Down, Broader Access
FHA loans are the most accessible program for buyers with lower credit scores. With a 580+ credit score, buyers can purchase with 3.5% down. Borrowers with scores between 500–579 can still access FHA with 10% down. FHA's annual MIP of 0.55% does not cancel on loans with less than 10% down — the trade-off for broader credit access. Horry County's FHA loan limit is $498,257, well above the median home price.
- 3.5% down (580+ credit)
- 0.55%/yr MIP — life of loan (<10% down)
- Credit score: 500 min (580 for 3.5%)
- Gift funds: 100% of down payment allowed
Side-by-Side Comparison: All Four Low Down Payment Programs
This chart covers the key decision points across all four programs for Myrtle Beach buyers. The right program depends on your service eligibility, credit score, income, and where you're purchasing.
Using Seller Concessions to Buy With Even Less Out-of-Pocket
In Myrtle Beach's current market, homes in the $275K–$400K range are taking longer to sell — creating an environment where sellers are often willing to negotiate concessions toward buyer closing costs. When paired with a low-down-payment program, seller concessions can dramatically reduce what you bring to the closing table.
Seller Concession Examples at $310,000 Purchase Price
FHA (3.5% down): Down payment = $10,850 | Closing costs ~$8,500 | Seller pays 6% ($18,600) → You pay down payment only
VA ($0 down): No down payment | Closing costs ~$8,000 | Seller pays 4% ($12,400) + funding fee → Effective out-of-pocket: near $0
USDA ($0 down): No down payment | Closing costs ~$7,500 | Seller pays 6% ($18,600) → Effective out-of-pocket: near $0
Conventional (3% down): Down payment = $9,300 | Closing costs ~$8,000 | Seller pays 3% ($9,300) → You pay down payment only
Your lender calculates the maximum allowable concession for your program and structures the offer so sellers know exactly what's being requested.
Do You Need 20% Down in Myrtle Beach?
No — and the belief that 20% is required is one of the most persistent barriers stopping buyers from entering the market. The 20% threshold matters only in one specific scenario: it's where PMI stops being required on conventional loans without a government guarantee. But even that concern has solutions.
On a $310,000 home in Myrtle Beach, 20% down is $62,000. At 3.5% down on FHA, that's $10,850. The difference is $51,150 — money that stays in your account, your emergency fund, or your investment portfolio. The question isn't whether 20% down eliminates PMI. The question is whether the PMI cost over the time you'll pay it is more or less than the opportunity cost of keeping that $51,150 liquid. For most buyers, a low-down-payment loan wins the math.
Broker Advantage: Beaufort Lending accesses wholesale rates from 40+ lenders. On identical loan programs, our wholesale pricing regularly beats bank and credit union retail rates by 0.25–0.50%. That rate difference, compounded over 30 years, often exceeds the total cost of PMI on a low-down-payment loan. We run the full comparison — total cost across multiple scenarios — before making a recommendation.
Low Down Payment FAQ — Myrtle Beach
What is the lowest down payment I can make on a home in Myrtle Beach?
Eligible veterans and active-duty service members can purchase with $0 down using a VA loan. Buyers in eligible rural and suburban areas of Horry County (Conway, Loris, Aynor, Galivants Ferry) can also purchase with $0 down using USDA loans. For buyers who don't qualify for either program, FHA loans require 3.5% down with a 580+ credit score, and Conventional HomeReady/HomePossible programs require 3% down with a 620+ credit score.
Do I need a 20% down payment to buy a house in Myrtle Beach?
No. The 20% down payment requirement is a myth for most buyers. Four government-backed or conventional programs allow purchases with 0–3.5% down in Myrtle Beach: VA ($0), USDA ($0), Conventional HomeReady/HomePossible (3%), and FHA (3.5%). The 20% figure historically comes from the threshold at which private mortgage insurance is no longer required on conventional loans — but PMI is cancellable once you reach 20% equity, making low-down-payment programs viable even for buyers who want to eliminate PMI eventually.
Can I use gift funds for my down payment in Myrtle Beach?
Yes, all four low-down-payment programs allow gift funds. FHA allows 100% of the down payment to come from gifts from family members. VA loans have no down payment requirement, so gift funds aren't needed for the purchase price. USDA allows gift funds to cover closing costs. Conventional HomeReady and HomePossible programs allow the entire 3% down payment to come from gifts. Your lender will need a gift letter confirming the funds are not a loan.
How do seller concessions work with low down payment loans in Myrtle Beach?
Seller concessions allow the home seller to contribute toward your closing costs at closing. FHA and USDA allow up to 6% of the purchase price in concessions. VA allows up to 4% plus the ability for the seller to pay the entire VA funding fee. Conventional allows 3–6% depending on LTV. On a $310,000 purchase with FHA, a 6% seller concession ($18,600) can cover all closing costs — meaning your total out-of-pocket is the 3.5% down payment ($10,850) only. In Myrtle Beach's current market, seller concessions are commonly negotiated.
Find Out How Little You Need to Buy in Myrtle Beach
Get pre-approved today and see your full side-by-side comparison across VA, USDA, FHA, and Conventional. We'll show you total cost — not just the rate — so you make the right call for your situation.
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