City of Columbia

City of Columbia City Lender I with down payment assistance

Low- and moderate-income buyers purchasing a single-family home inside Columbia city limits can get up to $18,500 in forgivable assistance plus a City second mortgage, with only $500 of their own money down.

City Lender I - with Down Payment Assistance

Limited funds

City of Columbia

Intended for: Credit-worthy low/moderate-income buyers purchasing a single-family home in Columbia city limits
Assistance: Up to $18,500 DPA (forgivable third mortgage) plus City 20% second mortgage at a 4% blended rate; buyer down payment only $500
Form of help: Forgivable second loan
Income ceiling: 2026: $51,750 (1) / $59,150 (2) / $66,550 (3) / $73,900 (4) / $79,850 (5) / $85,750 (6)
Price ceiling: $225,000 maximum purchase loan
First-time buyers only?: No
Further conditions: 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.

Reviewed November 2026 · our standards

Ask whether I qualify

So that you are not caught unaware. City Lender I - with Down Payment Assistance depends on limited funds that may run short. We can tell you when a new allotment is released.

How City Lender I is structured

The loan comes in three layers. A partner bank (Synovus, Assurance Financial, South State, First Community, Security Federal and others) makes the first mortgage. The City of Columbia adds a second mortgage covering 20% of the purchase, which produces a blended rate of 4%. Then the down payment assistance, up to $18,500, sits as a third mortgage that is forgiven over 5 years of continuous residence.

Because the City covers that 20% slice, the loan carries no PMI. The maximum purchase loan is $225,000. The City's May 11, 2026 flyer says the assistance is "based upon availability of funds," so confirm before you shop.

Who can use it

You do not have to be a first-time buyer, but you cannot own any other improved property at closing. Household income must be at or under the 2026 limits:

Household size	Income limit
1	$51,750
2	$59,150
3	$66,550
4	$73,900
5	$79,850
6	$85,750

You must finish HUD-certified credit counseling and homeownership training before closing, live in the home while the City holds a mortgage, and be ready for a 45-day contract-to-close window.

City Lender I versus Richland County and SC Housing help

The address decides it. Richland County's RCHAP does not serve homes inside Columbia city limits, so City Lender I is the local option there. Whether it can sit alongside SC Housing's $10,000 Homebuyer Program DPA is not stated; a participating lender confirms whether they combine.

What does that look like in dollars? On a home near the $225,000 loan cap, the City's 20% share is about $45,000, which is why no mortgage insurance is needed. The bank's first mortgage covers most of the rest, and the up-to-$18,500 third mortgage fills the down payment and cost gap. Leave before 5 years and some of that third mortgage is owed back. Counseling and training must be finished before closing, so start them early.

Getting started

Confirm the home is inside Columbia city limits.
Call Columbia Community Development at 803-545-3373 to ask about funds.
Get approved with one of the partner banks.
Complete HUD-certified counseling and homebuyer training.
Put $500 down and close within about 45 days of contract.

More on Richland County, the full cash-to-close guide, or check eligibility.

County guides for the area served: Richland County

Questions about City Lender I - with Down Payment Assistance

How much do I need to put down with City Lender I?

$500 of your own money. The rest is covered by the first mortgage, the City's 20% second mortgage and up to $18,500 in forgivable assistance.

Is City Lender I only for first-time buyers?

No, but you cannot own any other improved property at closing, and your income must be under the City's 2026 limits ($73,900 for a family of four).

When is the City Lender I assistance forgiven?

Over 5 years of continuous residence in the home.

Ask whether I qualify for this program

Programs you may also wish to read about

Richland County Homeownership Assistance Program (RCHAP) Unincorporated Richland County and Town of Blythewood
FHLBank Atlanta First-time Homebuyer Product (AHP Homeownership Set-aside)
Lexington County Homeownership Assistance Program (HOME DPA) Lexington County (listed towns incl. Lexington, West Columbia, Cayce, Irmo, Batesburg-Leesville, Chapin, etc.)
Greenville County Homebuyer Assistance Program Greenville County outside the City of Greenville
City of Spartanburg Homebuyer Assistance Program City of Spartanburg
City of Florence CDBG Target Area Down-payment Assistance City of Florence (North, Northwest and East Florence target areas)

Our account follows the official program page as of November 2026. Funds and rules can change, so please confirm the present terms with the program or a participating lender. South Carolina Down Payment Assistance has no connection with this program.