City of Spartanburg Homebuyer Assistance Program
Accepting applicationsCity of Spartanburg
- Intended for
- First-time buyers (or no home in 3 years) at or below 80% AMI (80-100% AMI may qualify on certain properties)
- Assistance
- Up to $20,000
- Form of help
- Forgivable second loan
- Income ceiling
- 80% AMI (Fox Carolina estimated ~$60,000 for a family of 4 in Feb 2025)
- Price ceiling
- $237,000 existing; $273,000 new construction
- First-time buyers only?
- Yes
- Further conditions
- Pre-approved fixed-rate 20-40 year mortgage; $500 minimum buyer investment; third-party inspection; payment ~35% of income; eligible areas map; $325 fee
0% subordinate loan forgiven over up to 20 years depending on amount, secured by restrictive covenant. City page: https://www.cityofspartanburg.org/213/Homeowner-Resources
Reviewed November 2026 · our standards
Ask whether I qualifyThe basics
The City funds this help with federal CDBG and HOME dollars, and CommunityWorks runs it. The assistance is a 0% subordinate loan secured by a restrictive covenant. Forgiveness can stretch up to 20 years, with the length tied to how much you receive. Larger awards carry longer terms.
Income, price and property rules
The standard cap is 80% of area median income; Fox Carolina estimated that at about $60,000 for a family of four in February 2025. On certain properties, buyers between 80% and 100% AMI may qualify. Price caps:
| Home type | Maximum price |
|---|
| Existing home | $237,000 |
| New construction | $273,000 |
The home must sit inside the City's eligible areas map and pass a third-party inspection. You need a pre-approved fixed-rate mortgage of 20 to 40 years, a $500 minimum investment, a housing payment near 35% of income, and the $325 fee. First-time status (or no home in 3 years) is required.
Other Spartanburg options
The Northside Development Group programs, including the "Local Heroes" help for teachers and first responders, currently have no funds. Spartanburg Regional employees have their own program. Whether this City loan stacks with SC Housing's $10,000 DPA is not stated; a participating lender confirms whether they combine. See how forgivable loans differ from grants in this explainer.
Because the loan is tied to a restrictive covenant and can run up to 20 years, this program suits buyers who see Spartanburg as a long-term home. Ask CommunityWorks how long the term would be for the amount you need; a smaller award may carry a shorter term. The 35% payment guideline also caps how much house you can carry, so get a realistic pre-approval before you check listings.
The third-party inspection protects you as well as the City: it flags repairs before you commit. Keep the $325 fee and your $500 minimum in savings, documented by bank statements, since lenders verify where closing money comes from. The 20 to 40 year fixed-rate range gives some room to pick a term that keeps the payment near 35% of income.
Applying
- Check the address against the City's eligible areas map.
- Get pre-approved for a fixed-rate loan.
- Apply through CommunityWorks.
- Schedule the third-party inspection.
More on the Spartanburg County page, or check eligibility.
County guides for the area served: Spartanburg County
Questions about City of Spartanburg Homebuyer Assistance Program
How long is the Spartanburg forgiveness period?
Up to 20 years, depending on how much assistance you receive.
Can someone above 80% AMI qualify?
Buyers between 80% and 100% AMI may qualify on certain properties. Ask CommunityWorks which ones.
Is the Northside program the same thing?
No. Northside Development Group's help is separate and currently has no funds available.
Ask whether I qualify for this program
Programs you may also wish to read about
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.
