Palmetto Home Advantage

What is 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.

How much assistance does it provide?

Palmetto Home Advantage provides assistance worth 4% of the purchase price, as set by the program.

• Buyer contribution: Per first-mortgage product (3.5% FHA, 0% VA/USDA, 3% conventional). 4% DPA grant covers most of borrower's required contribution.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Palmetto Home Advantage is forgiven after 10 years, so a buyer 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.

Who qualifies?

Palmetto Home Advantage is open to buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Is there eligibility for specific groups?

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.

Where does it apply?

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

How do you apply?

Applications for Palmetto Home Advantage go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved counseling agency or SC Housing-approved online provider (Framework, eHome America)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved through SC Housing's Lender Online portal at time of rate lock by approved participating lender., and are subject to availability.

3. 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.