A note on timingPalmetto Heroes is closed for 2026 and no 2027 dates are announced. The year-round SC Housing Homebuyer Program still offers $10,000 in forgivable down payment help.Review my eligibility
Columbia, SC
Down payment assistance in Columbia, SC
Columbia runs its own homebuyer lending through the City's Community Development office, so buyers inside city limits get a different menu than the rest of Richland County.
The main city option is City Lender I with down payment assistance. It pairs up to $18,500 in forgivable DPA (a third mortgage forgiven over 5 years of continuous residence) with a City 20% second mortgage, for a 4% blended rate and a buyer down payment of only $500. The purchase loan tops out at $225,000, there's no PMI, and income caps for 2026 run from $51,750 for one person to $73,900 for four. Partner banks include Synovus, Assurance Financial, South State, First Community and Security Federal. The City says the DPA depends on available funds, so treat it as funding-dependent and plan on the 45-day contract-to-close window.
What else can a Columbia buyer use?
The City also sells cottages it developed with TN Development Corporation on Pendleton, Ogden and McFadden Streets, with City mortgage financing for buyers at or below 80% AMI. Several were listed in November 2026 while others were under contract. Both city programs require HUD-approved homebuyer education and owner occupancy while the City holds a mortgage, and neither requires you to be a first-time buyer, though you can't own other improved property.
One trap: Richland County's RCHAP grant of up to $24,500 is not available inside Columbia city limits, so a Columbia address points you to City Lender I instead. At the state level, Columbia is one of the five cities in SC Housing's Made It Home! program, and the year-round SC Housing Homebuyer Program adds $10,000 in forgivable DPA under Richland County's $95,800 / $110,170 limits and its 3-year first-time buyer rule. Teachers in Richland One and staff of Columbia Police and Columbia-Richland Fire should also watch for the next Palmetto Heroes round. See the Richland County guide or run the program finder.
Cannot own any other improved property at closing; HUD-certified credit counseling and homeownership training before closing; owner-occupied while City holds a mortgage; 45 days contract-to-close; no PMI
DPA forgiven over 5 years of continuous residence, 'based upon availability of funds'. Flyer rev. 5/11/2026 (https://communitydevelopment.columbiasc.gov/wp-content/uploads/2026/05/City-Lender-I-with-down-payment5-11-26-pdf.jpg). Contact 803-545-3373.
City of Columbia HOME Affordable Homeownership (city-built cottages)
Accepting applications
City of Columbia
Intended for
Income-qualified buyers of city-developed single-family cottages (Pendleton, Ogden and McFadden Streets)
Assistance
City mortgage financing on affordable homes (amount not stated)
Form of help
Deferred loan, repaid on sale
Income ceiling
HUD HOME limits (80% AMI)
First-time buyers only?
No
Further conditions
No ownership of improved property within 3 years; HUD-approved homebuyer education (certificate valid 12 months); owner-occupied while City mortgage in place
Several homes listed, others under contract (Nov 2026).
Single-family detached only, built after 1978; HUD-certified homebuyer education; apply before ratifying a contract; $500 minimum buyer contribution; $50 fee; in-person application; inspections incl. CL-100
Deferred forgivable second mortgage: 5-year affordability under $15,000, 10-year at $15,000+. Page does not state remaining funds. Not available inside City of Columbia limits (use City Lender I there).
Buyers in Columbia may also turn to 5 statewide programs, Palmetto Heroes among them. You will find each one in the complete South Carolina list, or our program match can sort them for you.
Nearly every assistance program asks you to complete a homebuyer class before closing. The HUD-approved agencies below, each within reach of Richland County, teach that class or offer counseling before purchase.
Agency
Location
Miles away
Offered
Languages
How it is taught
Southeastern Housing & Community Development Fka Southeastern Housing Foundation
Taken from HUD’s list of housing counseling agencies. A given program may not accept every class.
Unsure which class will count? A loan officer who offers South Carolina programs can tell you, and can begin your pre-approval at the same time. Begin my eligibility review
Questions about Columbia
Can I use RCHAP if I'm buying in Columbia?
No. Richland County's RCHAP covers unincorporated Richland County and Blythewood only. Inside Columbia city limits, the City Lender I program is the local option.
How much do I need to put down with City Lender I?
The flyer lists a buyer down payment of only $500. The City covers the rest with up to $18,500 in forgivable DPA and a 20% City second mortgage.
Do I have to be a first-time buyer?
Not for the City programs, but you can't own any other improved property at closing. SC Housing's state programs apply the 3-year first-time rule in Richland County.
Thank you. Your name is on the list.
We will write when it reopens. Would you like to see what you may qualify for in the meantime?
Good day, I'm Amy. See if you're eligible for down payment assistance in South Carolina. The review is six short questions, and I would be glad to start you on the right one.
