S.C. Palmetto Heroes Provides $72M in Low-Interest Mortgages

Jessica Holdman/S.C. Daily Gazette

COLUMBIA — South Carolina is helping 272 educators, nurses, dental assistants, social workers, police officers, firefighters, paramedics and military members buy a home this year.

The state affordable housing agency approved more than $72 million in ultra low-interest mortgages, complete with down payment assistance, as part of its annual Palmetto Heroes program.

And this year the state doled out the in-demand program’s funding faster than ever, closing out in just 21 business days.

“Our public service professionals are the backbone of South Carolina’s communities,” SC Housing’s executive director, Robert Macdonald said in a statement ahead of the program’s March 16 opening. “The Palmetto Heroes Program is one way we demonstrate our commitment to them. We want those who care for our communities to have the opportunity to live and build equity in the same communities they serve.”

By comparison, the program was open for 33 business days in 2025 and resulted in 298 home loans totaling $74 million.

The program began in 2007 and has helped more than 2,500 community service workers purchase their first home in that time, according to SC Housing spokesman Matt McColl.

The biggest benefit to the Heroes program is the lower interest rate, which this year ran roughly a full percentage point lower than the state’s other first-time homebuyer offerings. On March 19, for example, the “heroes” rate was 4.8%.

The program also comes with $10,000 of down payment assistance baked into the mortgage rate, which ultimately varies depending on the day. And that amount is forgiven if the buyer stays in their home for 15 years.

Except for veterans, Palmetto Heroes applicants are subject to income limits, which for a one- or two-person household this year ranged from $90,500 to $135,000 depending on where the applicant was buying.

There is also a limit on the price of the home being bought. This year’s limit was $450,000.

Workers also must qualify as a first-time homebuyer, defined as not owning a primary residence in the last three years. Funds for the program are available on a first-come, first-served basis each year.

This loan program does not involve state taxes.

For those who miss out or do not qualify, SC Housing offers other homebuyer programs, available statewide all year long with or without down payment assistance.