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City of Charleston Homeownership Initiative (HI) - First-Time Homebuyer Program

City of Charleston Department of Housing and Community Development · Charleston, South Carolina

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Income limit

120% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 20 years

What is City of Charleston Homeownership Initiative (HI) - First-Time Homebuyer Program?

City of Charleston Homeownership Initiative (HI) - First-Time Homebuyer Program is a forgivable loan for homebuyers in Charleston, South Carolina, administered by City of Charleston Department of Housing and Community Development.

  • The City of Charleston Homeownership Initiative (HI) creates affordable homeownership for low- and moderate-income first-time buyers and supports neighborhood revitalization. The City acquires and transfers properties to housing development partners that build or rehabilitate homes for sale to income-eligible buyers. Down payment and closing cost assistance is available as a zero-interest deferred forgivable loan; City funds are carried through long-term restrictive covenants governing resale value, while partner-agency funds may be secured by a 5- to 10-year note and mortgage. Households earn 50%-120% AMI, must not have owned a home in three years, and must occupy as a primary residence. City-developed homes carry a 90-year affordability covenant.
  • Down payment and closing cost assistance.
  • Zero-interest deferred forgivable loan.
  • Access to newly built or rehabilitated affordable homes.
  • Priority for residents of targeted revitalization neighborhoods.
  • Homebuyer education and counseling.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from Federal (City of Charleston CDBG/HOME funds) and partner-agency funds.

Do you have to pay it back?

City of Charleston Homeownership Initiative (HI) - First-Time Homebuyer Program is forgiven after 20 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Failure to occupy/retain the home as primary residence for the required period; buyer may repay a portion of the original loan. City funds also governed by long-term restrictive covenants on resale value.
  • The assistance is recorded in Subordinate position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Charleston Homeownership Initiative (HI) - First-Time Homebuyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Not owned a home in the past three years; exceptions for displaced homemaker, divorced single individual/parent no longer owning, and owner of a property not meeting codes.
  • The home is occupied as a primary residence
  • On credit: Must qualify for the first mortgage and pass a background check; no specific minimum credit score published.
  • A completed homebuyer education course, through OriginSC (Homeownership Resource Center); Charleston Trident Urban League.
  • Residency: Home within the city limits of Charleston; first priority to current/former residents of five target neighborhoods.
  • DRAFT (dpa-gap-finder 2026-06-11): pending review. Zero-interest deferred forgivable DPA; City funds carried through long-term restrictive covenants determining resale value (City-developed homes carry a 90-year covenant); partner-agency funds may be secured by a 5- to 10-year note and mortgage. Buyer may owe repayment of a portion of the loan if occupancy/retention conditions are not met. First-time homebuyer (no ownership in 3 years), primary residence, background check, and ability to qualify for the first mortgage required. Exceptions to the 3-year rule: displaced homemaker; divorced single individual/parent no longer owning; owner of a property not meeting codes. Priority to current/former residents of five target neighborhoods. Homebuyer education via OriginSC or Charleston Trident Urban League; apply via Neighborly portal. NOTE: aggregators report up to $20,000 maximum assistance, but this could not be confirmed on a City primary source (left blank, not guessed); forgiveness term of up to 20 years is approximate pending confirmation.

The program excludes

  • Households above 120% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

City of Charleston Homeownership Initiative (HI) - First-Time Homebuyer Program limits household income to 120% of the area median income, which varies by county and household size.

  • Household income between 50% and 120% AMI for the Charleston-North Charleston-Summerville MSA by household size. Per City FY2025-2026 limits, 120% AMI = $133,080 (4-person); 100% AMI = $110,900 (4-person).
  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Charleston Homeownership Initiative (HI) - First-Time Homebuyer Program can be used for Single Family.

  • New construction is eligible.

Where does it apply?

City of Charleston Homeownership Initiative (HI) - First-Time Homebuyer Program is a federal program, so it is not limited to South Carolina.

  • The program targets specific areas: First priority to current and former residents of five identified target/revitalization neighborhoods within the City of Charleston.

How do you apply?

Applications for City of Charleston Homeownership Initiative (HI) - First-Time Homebuyer Program go through City of Charleston Department of Housing and Community Development, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through OriginSC (Homeownership Resource Center); Charleston Trident Urban League..

  2. Contact City of Charleston Department of Housing and Community Development to reserve funds

    Funds are reserved through Applications via the Neighborly online portal., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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