First-Time Buyer Grants & Loans in Myrtle Beach

South Carolina offers several state-administered programs that can cover part or all of your down payment when buying a home along the coast, and most of them work in Myrtle Beach, North Myrtle Beach, and Little River with no requirement that you be a first-time buyer. The four programs to know are Palmetto Home Advantage, the SC Housing Homebuyer Program, the County First Initiative, and the federal loan types (FHA, VA, and USDA) that reduce how much cash you need at closing.

SC Housing Programs: Your Starting Point for Down Payment Help

South Carolina Housing (SC Housing) is the state agency managing most homebuyer assistance available to Horry County buyers. It does not issue direct grants; instead, it provides forgivable second mortgages at 0% interest with no monthly payment. Staying in the home for the required term forgives the lien entirely, making the assistance effective capital toward your down payment and closing costs.

All SC Housing programs run through a network of approved lending partners across the state. Applications are processed through a participating lender rather than directly through SC Housing, so confirming lender approval is the first practical step.

Palmetto Home Advantage: The Most Accessible Program for Myrtle Beach Area Buyers

Palmetto Home Advantage is the broadest SC Housing program available to Horry County buyers, serving as a practical starting point for most home purchasers in the Myrtle Beach area. It carries no first-time buyer requirement, meaning move-up and repeat buyers can use it alongside first-time purchasers. Key terms for the 2026 to 2027 program year, per SC Housing's Programs for Homebuyers overview page, include:

• Available in all 46 South Carolina counties, including all of Horry County (Myrtle Beach, North Myrtle Beach, Little River, and surrounding communities).
• Down payment assistance of 0%, 3%, or 4% of the loan amount, structured as a forgivable second lien with no monthly payment required.
• No sales price cap, which provides flexibility in the mid-range to upper-tier segment of the local market.
• Statewide borrower income limit of $140,000, effective June 1, 2026, based on the individual borrower's income and not adjusted by family size (confirm the current figure with an SC Housing-approved lender, as program limits are updated periodically).
• Minimum credit score of 640 across all loan types.
• Supported loan types: Conventional, FHA, VA, and USDA.

The absence of a sales price ceiling is a meaningful distinction. The standard SC Housing Homebuyer Program caps the purchase price by county, whereas Palmetto Home Advantage does not, offering buyers more flexibility when shopping North Myrtle Beach or Little River properties above those county thresholds.

For a buyer financing a $500,000 home with the 4% down payment assistance option, the forgivable assistance could reach up to $20,000 toward the down payment and closing costs.

SC Housing Homebuyer Program: Built for Lower-to-Moderate Incomes

The SC Housing Homebuyer Program targets first-time buyers and families with low-to-moderate incomes. It pairs competitive fixed-rate 30-year mortgages with forgivable down payment assistance, structured as a 15-year second lien at 0% interest with no monthly payment. If the borrower remains in the home for the full 15-year term, the lien is forgiven completely.

Key differences from Palmetto Home Advantage include:

• County-specific income and home price limits apply, published by SC Housing in the 2026/2027 Income and Home Price Limits document; ceilings are lower than the statewide limit for Palmetto Home Advantage.
• Primarily designed for first-time buyers, though veterans qualify for an exception to the first-time requirement under this program.
• Completion of an SC Housing-approved homebuyer education course is required.
• Supported loan types: FHA, VA, USDA, and Conventional.

Buyers whose incomes sit above the Homebuyer Program's Horry County ceiling often find Palmetto Home Advantage a better fit due to its higher income limit and absence of a price cap.

County First Initiative: Additional Benefits for Horry County Buyers

Horry County is on the County First Initiative target county list, making this program available to buyers throughout Myrtle Beach, North Myrtle Beach, and Little River. County First is open to both first-time and move-up buyers; the primary ownership restriction is that borrowers cannot hold an ownership interest in a principal residence at the time of loan closing. The program layers additional benefits on top of the SC Housing Homebuyer Program for buyers purchasing in designated underserved counties, per SC Housing's Programs for Homebuyers overview page:

• A reduced interest rate below the standard SC Housing Homebuyer Program rate.
• Forgivable down payment assistance stacked on top of the Homebuyer Program's existing assistance.
• Supported loan types: FHA, USDA, and VA.
• Subject to the SC Housing Homebuyer Program's county-specific income and home price limits, which apply as the base program.

For Myrtle Beach and North Myrtle Beach buyers who qualify for the SC Housing Homebuyer Program and fall within Horry County's income and price limits, County First offers an additional layer of support. Confirm current assistance amounts, county eligibility, and program terms with an SC Housing-approved lender, as these details undergo periodic revision.

Palmetto Heroes: A Note for Teachers, First Responders, and Veterans

The 2026 Palmetto Heroes Program offered $10,000 in forgivable down payment assistance to teachers, nurses, law enforcement officers, correctional officers, firefighters, EMTs, paramedics, veterans, active-duty military, and National Guard members. The program opened March 16, 2026, and closed April 13, 2026, after exhausting its funding allocation and registering 272 home loans in under a month, according to SC Housing's announcement published April 24, 2026.

The program has exhausted its allocation quickly each successive year. Qualifying professionals should bookmark SC Housing's Programs for Homebuyers page and check back early in the year, as the program historically opens in mid-March and exhausts funding within weeks of launch.

Federal Loan Programs Available Across the Myrtle Beach Area

State programs stack on top of federal loan types, so understanding which base loan fits your situation is a prerequisite before adding down payment assistance on top.

FHA Loans

FHA loans backed by the Federal Housing Administration represent a common entry point for first-time buyers in the Myrtle Beach area:

• Minimum down payment of 3.5% with a credit score of 580 or higher; scores between 500 and 579 require a 10% down payment.
• 2026 FHA loan limit for Horry County (Myrtle Beach, Conway, North Myrtle Beach metro): $541,287 for a single-family home, per HUD's 2026 forward mortgage loan limits announcement.
• Requires an upfront mortgage insurance premium of 1.75% of the loan amount, typically rolled into the loan balance, plus an annual premium divided into monthly installments.
• Compatible with SC Housing Palmetto Home Advantage, letting buyers pair flexible FHA credit requirements with state-level down payment assistance.

FHA serves as a practical option for buyers with credit scores in the 580 to 639 range who do not yet qualify for the 640 minimum required by Palmetto Home Advantage. These buyers can utilize FHA independently while building credit toward combining programs in future transactions.

VA Loans

Active-duty military, veterans, and eligible surviving spouses have access to one of the most cost-effective financing options available:

• Zero down payment required.
• No monthly mortgage insurance.
• No official VA-set minimum credit score; most lenders require 580 to 620 in practice.
• Compatible with SC Housing programs to help cover closing costs, as VA financing eliminates the down payment requirement but not closing costs.

The Myrtle Beach area maintains a substantial military and veteran population, making VA loans a widely used financing type locally. Working with a lender approved for both VA and SC Housing programs simultaneously is essential to stacking these benefits effectively.

USDA Loans

USDA Rural Development loans offer zero down payment options for buyers purchasing in designated rural areas. Within Horry County, eligibility varies by location: much of inland Horry County qualifies, and most of Little River falls within current USDA eligible boundaries. However, specific address verification is necessary before making decisions. Developed cores in Myrtle Beach and North Myrtle Beach generally fall outside eligible boundaries. Buyers interested in zero-down USDA financing should confirm property-level eligibility through the USDA official eligibility tool prior to targeting specific neighborhoods, as boundaries undergo periodic review.

Income limits apply, and properties must meet USDA condition standards.

Conventional Loans with Low Down Payments

Fannie Mae's HFA Preferred and Freddie Mac's HFA Advantage programs, both accessible through Palmetto Home Advantage, allow conventional financing down to 3% on single-family properties for qualifying buyers. For buyers with credit scores above 700, these options often produce lower private mortgage insurance costs than FHA options, particularly when combined with state forgivable assistance. Buyers who do not require SC Housing assistance can also access conventional 3% down products through standard market lenders independently.

Understanding Closing Costs in Myrtle Beach, North Myrtle Beach, and Little River

Buyers in South Carolina broadly pay 2% to 5% of the purchase price in closing costs, covering loan origination fees, title insurance, attorney fees, prepaid property taxes, prepaid homeowners insurance, and county recording charges. Down payments represent one portion of upfront costs, while closing costs represent the other; both require accounting before settling on a target price range.

Typical closing cost line items include:

• Loan origination fees
• Title insurance
• Attorney fees (South Carolina requires a licensed real estate attorney to handle transaction closings)
• Prepaid property taxes and homeowners insurance
• County recording charges

On a $450,000 purchase, the 2% to 5% range translates to approximately $9,000 to $22,500 in addition to the down payment, though exact figures depend on the lender, loan type, and negotiated terms.

Flood insurance requires separate budget planning. Properties near the coast or within FEMA-designated flood zones carry flood insurance requirements, representing an ongoing annual obligation rather than a one-time closing cost.

Certain SC Housing assistance programs can apply toward closing costs as well as down payments. Sellers in many transaction structures can also contribute to buyer closing costs through negotiated concessions, a strategy worth evaluating with your agent during offer preparation.

Building Your Plan Before You Start Searching

Following a five-step sequence provides a clear structure leading toward closing: confirming SC Housing eligibility, modeling total monthly costs, targeting a 640 credit score, avoiding new credit activity, and completing required homebuyer education.

1. Confirm SC Housing eligibility first. Obtain pre-approval through an SC Housing-approved lender capable of evaluating your eligibility across all active programs simultaneously. Income, credit score, and loan type interact differently across Palmetto Home Advantage, the Homebuyer Program, and County First.
2. Model total monthly costs, not just loan principal and interest. Property taxes, homeowners insurance, flood insurance if applicable, and HOA fees represent ongoing obligations. The affordability calculator for Myrtle Beach area buyers on this site helps stress-test your numbers before committing to a target price range. For detailed monthly payment breakdowns by loan type and down payment scenario, the mortgage payment calculator serves as a helpful companion tool.
3. Aim for a 640 credit score before applying. Reaching 640 unlocks Palmetto Home Advantage across all loan types, whereas a 580 unlocks FHA independently. The variance in available program options makes achieving this score threshold worthwhile prior to beginning a formal search.
4. Avoid large financial changes during processing. Opening new vehicle financing, acquiring new credit accounts, or initiating significant cash transfers can alter your debt-to-income ratio and impact prior loan approvals.
5. Complete required homebuyer education. SC Housing programs require completion of an approved course. Completed online over a few hours, it covers budgeting, the purchase process, and loan obligations to prepare you for closing.

Key figures to keep in mind for lender discussions:

• A 640 credit score is required for all SC Housing Palmetto Home Advantage loan types.
• The $140,000 borrower income limit represents the Palmetto Home Advantage ceiling as of June 2026 (verify current figures with your lender, as limits undergo periodic updates).
• Horry County is designated as a County First target county, allowing qualifying buyers under Homebuyer Program limits to layer additional forgivable assistance and reduced interest rates.

Preparing for Your Myrtle Beach Area Purchase

Securing the right mortgage assistance program is often the biggest hurdle for buyers along the coast, but you do not have to figure out the process alone. As you transition from budgeting to house hunting, having a clear roadmap makes all the difference. Check out our step-by-step guide to buying a home in Horry County, SC to learn more about the local buying process from start to finish.

Ready to see what is currently on the market? Connect with us anytime to start the conversation.

Frequently Asked Questions

• Do I have to be a first-time buyer to get down payment assistance in South Carolina?

No. The Palmetto Home Advantage program has no first-time buyer requirement and is open to first-time, move-up, and repeat buyers across all 46 South Carolina counties, including Horry County. The County First Initiative is also available to both first-time and move-up buyers, with the primary restriction being that borrowers cannot hold an ownership interest in a principal residence at the time of loan closing. The SC Housing Homebuyer Program does generally require first-time buyer status, though veterans qualify for an exception under that program.

• What is the income limit for the Palmetto Home Advantage program?

The statewide borrower income limit for Palmetto Home Advantage is $140,000 for the 2026/2027 program year, effective June 1, 2026, per the SC Housing Programs for Homebuyers overview page. This limit is based on individual borrower income, not total household income, and is not adjusted by family size. Because program limits undergo periodic updates, confirm the current figure with an SC Housing-approved lender prior to applying.

• Can I use an FHA loan with SC Housing down payment assistance?

Yes. Both Palmetto Home Advantage and the SC Housing Homebuyer Program support FHA financing. Combining an FHA loan with SC Housing assistance can substantially reduce cash needed at closing. Note that SC Housing programs require a minimum 640 credit score across all loan types, so combining FHA with SC Housing requires meeting the 640 threshold even though standalone FHA permits scores as low as 580.

• Does USDA financing apply to homes in Myrtle Beach or North Myrtle Beach?

Developed core areas of Myrtle Beach and North Myrtle Beach generally fall outside USDA rural eligibility designations. Little River presents a different scenario, as most of that community falls within current USDA eligible boundaries. Specific addresses still require verification through the USDA official eligibility tool prior to making purchase decisions, as boundaries undergo periodic review.

• What credit score do I need to buy a home in the Myrtle Beach area?

Minimum requirements depend on loan type. FHA loans accept scores down to 580 for 3.5% down payment options (scores from 500 to 579 require 10% down). VA loans carry no official VA minimum score, though most lenders require 580 to 620 in practice. SC Housing Palmetto Home Advantage requires a 640 minimum across all loan types. Conventional loans typically require 620 or higher. Higher credit scores generally yield better interest rates and reduced private mortgage insurance costs.

• How much should I budget for closing costs when buying near Myrtle Beach?

Closing costs for buyers in South Carolina generally fall within the 2% to 5% range of the purchase price, covering lender fees, title insurance, attorney fees, prepaid expenses, and recording charges. South Carolina requires a licensed real estate attorney for closing, making attorney fees standard in calculations. Exact totals vary by lender, loan type, and negotiated terms. Some SC Housing assistance can apply toward closing costs in addition to down payments, and seller contributions toward closing costs can often be negotiated as part of the purchase agreement.