There are 2,746 homeownership assistance programs in the United States right now.
That is not a typo.
Down Payment Resource’s Q2 2026 Homeownership Program Index counted 67 more programs than just one quarter earlier. Of those, 1,696 are available to first-time buyers, grant programs increased to 234, and 77% of the programs tracked were active and funded as of July 1.
But the number that jumped out at me was 39%.
That is the share of programs administered by municipalities, making local governments the single largest provider group in the country.
And that tracks with something my years in affordable housing taught me long before I ever started selling real estate: some of the most useful housing resources are also the ones buyers are least likely to know exist.
Not because they are secret. They are usually sitting right there on a government website somewhere. The problem is that nobody thinks to go hunting through county Community Development pages while casually scrolling houses at 10:30 at night.
“Down Payment Assistance” Is Not One Thing
This is probably the first misconception I would retire if I could.
Buyers hear “down payment assistance” and picture one statewide first-time buyer program with a big income restriction attached.
That is not how this works.
Some programs are statewide. Some only work inside one county. Some are limited to first-time buyers, while others specifically allow repeat buyers. Some help with the down payment, some with closing costs, and some can reduce principal.
And “assistance” does not automatically mean “free money.”
Nationwide, second mortgages are actually the most common program structure, representing 56% of the programs tracked by Down Payment Resource. They may be deferred or forgivable, but the terms matter.
That is why I care a lot less about whether a program sounds good in a flyer and a lot more about whether it works for the actual buyer, actual house and actual transaction. If you’re just starting to sort out what you can actually afford and qualify for, my first-time home buyer tips for the Midlands is a good place to start before you get into program specifics.
In South Carolina, SC Housing Is Usually Where I’d Start
For a South Carolina buyer, SC Housing is one of the first places worth checking because there are multiple programs, not just one.
The SC Housing Homebuyer Program, often called the Bond Program, currently offers qualifying borrowers $10,000 in down payment assistance structured as a 0% interest, no-payment, forgivable second mortgage with a 15-year term. Income and home-price limits apply, and in counties including Richland and Lexington, first-time buyer requirements also come into play.
For the right buyer, I absolutely think this one is worth exploring.
But it is still a second lien. If you sell, refinance or stop using the home as your primary residence before the applicable term is satisfied, that matters. “Forgivable” should never be translated into “there are no strings attached.”
Then there is Palmetto Home Advantage, which is one of the programs I wish more buyers knew about because it is not limited to first-time buyers.
As of June 2026, it allows first-time, move-up and repeat buyers, has a statewide qualifying-income limit of $140,000 and offers conventional, FHA, VA and USDA financing. Down payment assistance can currently be structured at 0%, 3% or 4% of the first mortgage amount through a 10-year, 0% interest, no-payment forgivable second mortgage.
That is a very different conversation from, “Sorry, you owned a house before, so assistance isn’t for you.”
And Then You Get Hyperlocal
This is where things get interesting in the Midlands.
Richland County
The Richland County Homeownership Assistance Program, or RCHAP, can currently provide eligible first-time buyers with up to $24,500 toward down payment, closing costs and even principal reduction when purchasing in unincorporated Richland County, with the service area expanding this October to include the Town of Blythewood.
Twenty-four thousand five hundred dollars is enough money that I would absolutely do the paperwork if the buyer and property fit.
But there is a lot of paperwork.
The buyer must meet household-income requirements, complete housing counseling and go through the County’s application process. The property has its own eligibility requirements. There are price limits. There are multiple inspections. And this is a big one: the buyer cannot already have a ratified contract when beginning the process. The County currently advises that a completed application can take up to 30 business days to process.
So would I tell a qualified buyer to look at RCHAP? Absolutely.
Would I discover it after we are under contract on a house that needs to close in three weeks and pretend we can casually bolt it onto the transaction? Absolutely not.
Programs like this work best when they are part of the buying strategy from the beginning.
Lexington County
Lexington County also has a HOME-funded Down Payment Assistance Program for qualifying low- and moderate-income first-time buyers.
The County’s 2026 plan provides for up to $5,000 per eligible applicant, while its current pre-screening process requires applicants to provide a mortgage preapproval and complete eligibility review before approval.
This is one where I would run the numbers before getting overly excited about the word “assistance.”
Five thousand dollars can absolutely matter. It can be the difference between having enough for closing and being short.
But assistance also has to be weighed against the financing, property and program requirements involved. If using a $5,000 program significantly restricts the homes a buyer can purchase, delays an otherwise straightforward transaction or creates costs that wipe out much of the benefit, then the program needs a harder look.
The goal is not to use assistance just because assistance exists.
The goal is to buy a house responsibly.
City of Columbia
The City of Columbia also administers federal HOME funding through its Community Development Department, including funds that may be used for down payment and closing-cost assistance for qualifying first-time buyers.
This is exactly the kind of hyperlocal resource buyers often miss, and also exactly the kind I would verify before counting the money into a purchase plan.
Local programs can change with funding cycles, program years and available allocations. Eligibility alone does not guarantee there is money waiting with your name on it.
Timing Matters More Than People Realize
South Carolina gave us a pretty spectacular example of this earlier this year.
SC Housing’s 2026 Palmetto Heroes Program offered $10,000 in forgivable down payment assistance and special mortgage financing to eligible teachers, nurses, law enforcement officers, firefighters, EMTs, paramedics, veterans, active-duty military members and National Guard members.
It opened March 16.
It was closed by April 13.
In less than a month, 272 loans had been registered and the allocated funding was gone.
So when I tell buyers that we should look at financing and assistance options early, this is why. If waiting on rates is also part of your hesitation, I’ve made this argument before in Stop Waiting for the “Perfect” Mortgage Rate to Buy a Home, and the same logic applies here. Waiting until you find the house can mean waiting until the program you could have used is gone.
The Best Program Is Not Necessarily the One With the Biggest Number
This may be the most important thing my affordable-housing background taught me.
Housing programs are tools.
A $5,000 program that fits neatly into the transaction may be more useful than a $20,000 program that requires a buyer to purchase a home they do not want, in an area they do not want, on a timeline that does not work.
Likewise, a forgivable second mortgage can be fantastic for a buyer who expects to stay put long enough to satisfy the terms. It may deserve a different conversation with someone who already expects to sell or refinance relatively soon.
And sometimes a buyer who technically qualifies for assistance may be financially better off choosing a different mortgage structure altogether.
There is no gold star for collecting the most programs.
The win is ending up with financing and a house that still make sense after closing day.
Ask the Question Earlier
Down Payment Resource found that 62% of homeownership programs are available to first-time buyers, but that also means hundreds are not limited to them. It found programs with no income restrictions, programs serving manufactured housing, programs for multi-unit properties and programs targeted to specific occupations and buyer circumstances.
So the question should not be: “Is there a first-time homebuyer program?”
A much better question is: “What assistance programs are currently funded for this buyer, in this location, with this loan type, and what will using one actually cost or restrict?”
That answer takes a little more work.
Sometimes, apparently, $24,500 worth of work.
Frequently Asked Questions
How do I know if I qualify for down payment assistance in South Carolina?
Eligibility depends on the specific program, income, first-time buyer status, and sometimes the property’s location or price. The only way to know for sure is to run your actual numbers against a specific program’s guidelines, ideally before you’re under contract.
Can I combine more than one assistance program on the same home?
Sometimes, but not always, since some programs cannot be layered with others or with certain loan types. This is something to sort out with your lender early rather than assume works out.
Does down payment assistance mean the money is free?
Not usually. Most programs, including SC Housing’s Bond Program and Palmetto Home Advantage, structure assistance as a forgivable second mortgage with a required residency term. Selling, refinancing, or moving out before that term ends can trigger repayment.
What’s the difference between SC Housing’s Bond Program and Palmetto Home Advantage?
The Bond Program is limited to first-time buyers and offers $10,000 over a 15-year forgivable term. Palmetto Home Advantage is open to repeat and move-up buyers too, with a $140,000 income limit and a 10-year forgivable term.
How early should I start looking into assistance programs?
Before you start touring homes, if possible. Programs like Palmetto Heroes have run out of funding in less than a month, and county programs like RCHAP typically require you to apply before you have a ratified contract.
Wondering Which Program Actually Fits Your Situation?
Every one of these programs has real trade-offs buried in the fine print. I’m happy to help you sort out which ones are worth pursuing for your specific numbers and timeline.
Call or text me at 803.784.4249.
Images in this article are AI-generated and do not depict specific clients, properties, or listings.
Find more Midlands real estate tips at @SmartandSavvyMoves.
Savannah Hill, REALTOR® | Jeff Cook Real Estate | LPT Realty
Serving buyers and sellers across Columbia, Lexington, Irmo, Ballentine, Chapin, Lake Murray, Aiken, and the surrounding Midlands.
