In South Carolina, down payments typically range from 0% to 20%, depending on the type of loan you use. First-time buyers, veterans, and rural buyers may qualify for little to no money down, while conventional loans often require between 3% and 20%.
Average Down Payments in South Carolina
The average down payment in South Carolina varies based on the type of loan and the buyer’s financial situation. However, most buyers put down between 3% and 10%.
Here’s a quick overview:
- 3%–5%: Common for conventional loans with solid credit
- 3.5%: Required for FHA loans
- 0%: Available for qualified VA and USDA loans
- 10%–20%+: Often used by cash buyers or those seeking lower monthly payments
If you’re buying in the Lake Marion area, where homes range from starter cabins to luxury lakefront estates, your down payment will also depend on your budget and loan approval amount.
Minimum Down Payment by Loan Type
Different types of loans have different down payment rules. Here’s a breakdown of the most common options:
🔹 Conventional Loan
- Minimum down: 3%
- Best for buyers with strong credit
- No PMI with 20%+ down
🔹 FHA Loan
- Minimum down: 3.5%
- Designed for low to moderate income or lower credit
- Requires mortgage insurance
🔹 VA Loan
- Minimum down: 0%
- Only for veterans, active-duty military, and eligible spouses
- No PMI and lower closing costs
🔹 USDA Loan
- Minimum down: 0%
- For rural areas like much of the Lake Marion region
- Income and location restrictions apply
If you’re unsure which loan is right for you, a local expert like Carolina Properties at Lake Marion can help you connect with the right lender and program.
How to Choose the Right Down Payment for You
While putting 20% down eliminates mortgage insurance and lowers your monthly payment, it’s not always necessary—or even smart—for every buyer.
Here’s how to evaluate what’s best for you:
- Lower down payment: Keeps more cash in hand but may mean higher monthly payments and mortgage insurance
- Higher down payment: Reduces your loan amount and interest paid over time
Consider these questions:
- Are you planning to live in the home long-term or rent it out later?
- Do you have other savings for repairs, emergencies, or upgrades?
- Would putting more down leave you financially stretched?
At Carolina Properties, we help you weigh these factors as part of your buying plan—not just your budget.
Down Payment Assistance in South Carolina
South Carolina offers several down payment assistance programs to help homebuyers—especially first-timers or those buying in rural areas like Lake Marion.
Available Programs:
- SC Housing Homebuyer Program – Offers forgivable loans and grants
- Palmetto Home Advantage – 0% interest second mortgage for qualified buyers
- USDA Rural Development Loans – 100% financing available for Lake Marion region
- VA Loans – Zero down for veterans and service members
Working with a knowledgeable agent ensures you won’t miss out on programs that could save you thousands. Carolina Properties can connect you with local lenders who offer these opportunities.
FAQ: Down Payments in South Carolina
Q: Do I have to put 20% down on a house?
A: No—many loans allow down payments as low as 3%, or even 0% if you qualify for a VA or USDA loan.
Q: Can I use gift money for my down payment?
A: Yes! Most lenders allow you to use gifted funds, but documentation is required.
Q: Is it better to put down more than the minimum?
A: It depends. A higher down payment reduces your loan and monthly cost—but only if it doesn’t drain your savings.
Q: Are there any zero-down options in South Carolina?
A: Yes—VA and USDA loans both offer 100% financing for those who qualify.
Q: Can I get help with my down payment?
A: Absolutely. Several state and federal programs offer grants or loans to help with down payment and closing costs.
Final Thoughts: Let Carolina Properties Help You Find—and Fund—Your Dream Home
The down payment is one of the biggest hurdles for homebuyers—but it doesn’t have to stop you. Whether you have 20% saved or need help exploring low and no down payment options, the team at Carolina Properties at Lake Marion is here to help.
We’ll walk you through loan types, connect you with trusted local lenders, and help you secure the home you want—at a price and payment you can afford.
Ready to find out how much you really need to put down? Contact Carolina Properties today and let us guide you through every step of the home-buying process.