Palmetto Home Advantage

Palmetto Home Advantage is a forgivable loan for homebuyers in Statewide, South Carolina. SC Housing's flagship statewide non-bond TBA program: 30-year fixed first mortgage + up to 4% forgivable DPA second over 10 years. No FTHB requirement; 640 FICO; $135,750 income cap. Palmetto Home Advantage is SC Housing's flagship statewide non-bond / TBA homeownership program. It pairs a 30-year fixed-rate first mortgage with up to 4% of the first-mortgage loan amount as down payment assistance. The DPA is structured as a forgivable second-lien loan at 0% interest, fully forgiven after 10 years of continued owner-occupancy. Because Palmetto Home Advantage is non-bond/TBA, there is no first-time homebuyer requirement. Eligible loan products include FHA, VA, USDA-RD, and conventional (Fannie Mae HFA Preferred / Freddie Mac HFA Advantage). Available statewide to qualifying buyers with a 640+ FICO and household income up to $135,750. Funding comes from State and TBA.

Palmetto Home Advantage is forgiven after 10 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Forgiven over 10 years of owner-occupancy. Unforgiven balance due on sale, refinance, transfer, or non-owner-occupancy before 10 years. The assistance is recorded in 2nd Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Palmetto Home Advantage is open to homebuyers who will live in the home as their primary residence. On credit, the program states: 640 minimum representative FICO across all borrowers per SC Housing program guidelines. A homebuyer education course is required, through HUD-approved counseling agency or SC Housing-approved online provider (Framework, eHome America). Residency requirement: Property must be located in South Carolina and serve as borrower's principal residence. Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays. Owner-occupied principal residence anywhere in South Carolina. Household income at or below $135,750. 640 minimum representative FICO. Homebuyer education required for all conventional borrowers (and FHA when all borrowers are FTHB). No first-time homebuyer requirement (non-bond TBA program).

Palmetto Home Advantage limits household income to $135,750. 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.

Palmetto Home Advantage caps the purchase price as follows: Conforming loan limit applies (no SC Housing-specific sales price cap on the non-bond TBA product). Eligible property types include Single-family detached, condominium, townhouse, PUD and manufactured home on permanent foundation per servicer overlays. New construction is eligible. Manufactured homes are eligible.

Palmetto Home Advantage names veterans, active-duty service members, reservists and National Guard members, and surviving spouses 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.

Palmetto Home Advantage serves homebuyers purchasing in Statewide, South Carolina.

Applications for Palmetto Home Advantage go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Reserved through SC Housing's Lender Online portal at time of rate lock by approved participating lender. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.