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Palmetto Heroes

South Carolina State Housing Finance and Development Authority (SC Housing) · South Carolina

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Assistance

$10,000

The maximum the program publishes — not an offer

Income limit

$127,535

The household income limit the program publishes

Price cap

$450,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 15 years

What is Palmetto Heroes?

Palmetto Heroes is a forgivable loan for homebuyers in South Carolina, administered by South Carolina State Housing Finance and Development Authority (SC Housing).

  • Palmetto Heroes is SC Housing's annual initiative honoring educators, first responders (law enforcement, corrections, firefighters, EMTs, paramedics), licensed medical professionals, active-duty military, SC National/Air National Guard reservists, and veterans. Qualified first-time homebuyers in these professions receive FHA, VA, USDA, or Conventional financing at a lower fixed rate plus $10,000 in DPA as a 15-year, 0% interest, no-payment forgivable second mortgage. Annual cycle with limited funding (2026 reservations opened 03/16/2026).
  • $10,000 forgivable DPA (0%, no payment).
  • Forgiven after 15 years.
  • Lower fixed rate.
  • FHA/VA/USDA/Conventional.
  • Covers down payment, closing costs, prepaids.
  • Funding comes from SC Housing mortgage revenue bond (BOND) program.

How much assistance does it provide?

Palmetto Heroes offers up to $10,000 in assistance.

  • Amounts are the program's published maximums, not an offer — South Carolina State Housing Finance and Development Authority (SC Housing) determines any individual award.

Do you have to pay it back?

Palmetto Heroes is forgiven after 15 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by DPA repaid in full on sale, refinance, or non-occupancy before the 15-year (180-month) maturity; forgiven if borrower remains for full term.
  • The assistance is recorded in Second position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Palmetto Heroes 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: Must meet SC Housing First-Time Homebuyer rules; eligible veterans exempt from FTHB requirement.
  • The home is occupied as a primary residence
  • Residency: Property must be in South Carolina
  • DRAFT (dpa-gap-finder 2026-06-12): pending review. At least one borrower in an eligible profession (certified educator; law enforcement/corrections; firefighter/EMT/paramedic; SC-licensed medical professional in patient-facing role; or active-duty military/Guard reservist/veteran with non-dishonorable discharge). Must meet SC Housing FTHB rules. Annual program; closes when funds exhausted. min_credit_score, max_dti, homebuyer education defer to SC Housing Homebuyer (BOND) Program Guide (not fully read this pass). income_limit_amount = Charleston County 3+ person ($127,535) as representative figure (county-specific).

The program excludes

  • Purchases above the $450,000 price cap
  • Households above $127,535

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?

Palmetto Heroes limits household income to $127,535.

  • 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?

Palmetto Heroes caps the purchase price at $450,000.

  • Eligible property types include Single Family, Condo, and Townhouse.

Is there eligibility for specific groups?

Palmetto Heroes names veterans, active-duty service members, reservists and National Guard members, educators, law enforcement officers, firefighters, and healthcare workers among the groups it serves.

  • Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Palmetto Heroes serves buyers purchasing anywhere in South Carolina.

How do you apply?

Applications for Palmetto Heroes go through South Carolina State Housing Finance and Development Authority (SC Housing), which publishes the current terms and the application steps on its own site.

  1. Contact South Carolina State Housing Finance and Development Authority (SC Housing) to reserve funds

    Funds are reserved through Lender reservation/rate lock through SC Housing; executed sales contract required before locking. 2026 reservations opened 03/16/2026; all loans closed/purchased by 12/31/2026., and are subject to availability.

  2. 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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