For buyers with solid credit and stable income, a Conventional Loan is often the most cost-effective path to homeownership in South Carolina. All 46 counties follow the same $832,750 conforming limit for 2026 — a clean, uniform structure whether you’re buying in the Charleston suburbs, the Greenville-Spartanburg Upstate, the Grand Strand near Myrtle Beach, or a growing mid-size city like Columbia, Sumter, or Florence.
SC Housing’s Palmetto Home Advantage program pairs directly with conventional financing, providing forgivable down payment assistance with reduced mortgage insurance costs — making conventional a compelling option for eligible buyers who might otherwise lean toward FHA.
A Conventional Loan is a mortgage not insured or guaranteed by a federal government agency. Unlike FHA Loans or VA Loans, Conventional Loans are funded by private lenders and sold to Fannie Mae or Freddie Mac. Because there’s no government guarantee, lenders apply stricter qualification standards — but borrowers who qualify benefit from more competitive pricing, greater property flexibility, and lower long-term mortgage insurance costs.
620; 700+ for the best rates
As low as 3% for first-time buyers; 5% for repeat buyers; 20% eliminates PMI
Generally up to 45%
$832,750 uniform across all 46 SC counties (2026)
Primary residences, second homes, and investment properties all eligible
Documented, verifiable income required
South Carolina has no high-cost county designations — the $832,750 limit applies identically in every county. For purchases above $832,750 anywhere in South Carolina — common on Kiawah Island, Sullivan’s Island, Hilton Head Island, and in Charleston’s premium historic district — a Jumbo Loan is required.
When combined with a conventional HFA Preferred or HFA Advantage loan through SC Housing:
Down payment assistance of 0%, 3%, or 4% of the loan amount — forgiven after 10 years
Reduced private mortgage insurance rates — significantly lowering monthly costs vs. standard conventional PMI
No sales price limits — unlike some DPA programs that cap the purchase price
Available to first-time AND repeat buyers
Income limit: $135,750 (2025/2026)
Minimum credit score: 640
On a $300,000 purchase, 4% DPA through Palmetto Home Advantage provides $12,000 toward closing costs and down payment — while the reduced MI rate saves additional money every month.
| Feature | Conventional Loan | FHA Loan |
|---|---|---|
| Minimum Credit Score |
620 |
500 (580 for 3.5% down) |
|
Minimum Down Payment |
3% (first-time buyers) |
3.5% (score 580+) |
|
Mortgage Insurance |
PMI; removable at 20% equity |
MIP; lifetime in most cases |
|
Upfront Insurance Fee |
None |
1.75% UFMIP |
|
Investment Properties |
Yes |
No (primary residence only) |
| SC Statewide Limit | $832,750 | $541,287 (most counties) |
Have a credit score of 640 or higher (to also access Palmetto Home Advantage)
Want SC Housing DPA with reduced mortgage insurance
Want to purchase a second home or investment property
Want the option to remove PMI as equity builds
Are buying a vacation property at the beach or lake
Are buying in the competitive Charleston metro where sellers often prefer conventional offers
$832,750 for a single-family home in every one of South Carolina’s 46 counties. There are no high-cost county designations — the limit is identical statewide.
Yes — Palmetto Home Advantage is specifically designed to work with conventional HFA Preferred/HFA Advantage loans. The combination provides forgivable DPA (3% or 4%) plus reduced mortgage insurance rates. Minimum 640 credit score and income up to $135,750.
Yes. Conventional Loans support second home and investment property purchases — FHA does not. If you’re buying a vacation property at the beach, Jumbo or conventional financing are your primary options depending on price.
For buyers with 640+ credit who qualify for Palmetto Home Advantage, conventional is often the better choice: reduced MI rates, no upfront MIP, and the ability to remove PMI as equity builds. For buyers with lower credit scores (580–639) or limited cash, FHA paired with SC Housing DPA is the more accessible path.
