How Much Down Payment is Required for FHA Loans in South Carolina?

When it comes to buying a home in South Carolina, many first-time buyers and families turn to FHA loans for their low down payment requirements and flexible credit guidelines. At BrickWood Mortgage Inc, we specialize in helping South Carolinians navigate the ins and outs of FHA loans and other mortgage loan programs designed to fit your unique financial situation.

If you’re wondering how much down payment is required for FHA loans in South Carolina, you’re in the right place. Below, we’ll break down everything you need to know about FHA loan down payments, how they work, who qualifies, and why this loan program might be the ideal fit for your homeownership journey.

What Are FHA Loans?

FHA loans are government-backed mortgages insured by the Federal Housing Administration (FHA). These loans are designed to make homeownership more accessible, especially for individuals with lower credit scores or limited savings for a down payment.

The FHA doesn’t lend money directly. Instead, it insures loans made by FHA-approved lenders, which reduces the risk for lenders and makes it easier for borrowers to qualify.

Minimum Down Payment for FHA Loans in South Carolina

The minimum down payment required for an FHA loan in South Carolina is 3.5% of the home’s purchase price. However, this rate is only available to borrowers with a credit score of 580 or higher.

Let’s break it down:

Credit Score 580 or higher: Minimum 3.5% down payment
Credit Score 500–579: Minimum 10% down payment
Below 500: Not eligible for an FHA loan

Example:

If you’re purchasing a home for $250,000 in South Carolina:

With a 3.5% down payment, You’d need $8,750 upfront
With a 10% down payment (credit score under 580): You’d need $25,000

This makes FHA loans one of the most accessible mortgage loan programs, especially when compared to conventional loans that typically require 5% to 20% down.

Other Costs to Consider

While the low down payment makes FHA loans attractive, it’s important to understand other associated costs:

1. Upfront Mortgage Insurance Premium (UFMIP):

Typically 1.75% of the loan amount
Can be rolled into the loan instead of being paid out of pocket

2. Annual Mortgage Insurance Premium (MIP):

Paid monthly as part of your mortgage payment
Amount varies based on loan term, down payment, and loan size

3. Closing Costs:

Typically range from 2% to 5% of the loan amount
Some of these can be paid by the seller or rolled into the loan in certain cases

At BrickWood Mortgage Inc, we help you understand all upfront and ongoing costs so that there are no surprises.

Can Gift Funds Be Used for the FHA Down Payment?

Yes! One of the unique benefits of FHA loans is the ability to use gift funds for your down payment and even closing costs. These funds must come from a relative, employer, government agency, or charitable organization.

However, documentation is required to verify the source of the funds and to confirm that they are a gift—not a loan.

FHA Loan Limits in South Carolina

FHA loans also come with loan limits, which vary by county and are updated annually. For most counties in South Carolina, the 2025 FHA loan limit for a single-family home is $498,257, but it can be higher in certain areas with more expensive housing markets.

You can contact BrickWood Mortgage Inc at (843) 314-4101 for up-to-date loan limits in your specific South Carolina county.

Advantages of FHA Loans

There are many reasons why FHA loans are a popular choice for South Carolina homebuyers:

Low down payment options
Lenient credit score requirements
Flexible debt-to-income ratios
Available for first-time and repeat buyers
Gift funds allowed
Assumable loans (great for resale)

If you’re not sure whether an FHA loan is right for you, our team at BrickWood Mortgage Inc will help you explore all your mortgage loan programs and guide you toward the best fit for your financial situation.

Can FHA Loans Be Used for Mortgage Refinance?

Absolutely! FHA loans are not just for new home purchases—they can also be used for mortgage refinances. The two most common FHA refinance programs include:

1. FHA Streamline Refinance

Simplified refinance process
No home appraisal required
Must already have an existing FHA loan

2. FHA Cash-Out Refinance

Tap into home equity for cash
Requires a new appraisal and credit check

If you’re considering refinancing your current mortgage to reduce your interest rate or pull out equity, contact BrickWood Mortgage Inc to learn about your FHA refinance options.

Why Choose BrickWood Mortgage for FHA Loans in South Carolina?

At BrickWood Mortgage Inc, we’re more than just mortgage brokers—we’re your local home financing partner. With years of experience in the South Carolina real estate and lending markets, we understand the needs of our community and provide personalized service every step of the way.

When you work with us, you’ll get:

Expert guidance through FHA and other mortgage programs
Competitive interest rates and low fees
Fast, efficient loan processing
A dedicated loan officer from application to closing

Whether you’re buying your first home or refinancing your current one, we’re here to help you make informed, confident decisions.

Start Your FHA Loan Journey Today

BrickWood Mortgage Inc. is inviting prospective homebuyers in South Carolina to take the next step toward homeownership with a consultation. Whether you’re exploring down payment options or evaluating which mortgage loan programs you qualify for, the experienced team at BrickWood Mortgage is ready to help.

Call (843) 314-4101 or visit our website to learn more about FHA loan options and how they can simplify the path to owning a home. Dedicated to serving local families, BrickWood Mortgage Inc. continues to be a trusted partner in financing futures across South Carolina.