How Much Do I Need for a Down Payment and What About My Credit Score?

If you’re thinking about buying a home in Orangeburg, Bamberg or Calhoun Counties (or anywhere in South Carolina), one of the biggest questions you’ll face is: “How much upfront cash do I need?” and “What credit score is required?”The good news: the barriers are lower than many people think — and there are special programs available to help.

Credit Score Requirements in South Carolina

• For many standard conventional loans, South Carolina borrowers will generally need a credit score of at least 620.

• If you qualify for the state-run program SC Housing (which pairs with Conventional, FHA, VA or USDA loans), the minimum credit score is 640.

• For an Federal Housing Administration (FHA) loan in South Carolina: if you have a credit score of 580 or higher, you can put down as little as 3.5%. For scores from 500-579, you may still qualify but the down payment rises (for example 10%).

• Bottom line: You don’t necessarily need a “perfect” credit score; with the right program you may qualify with a mid-600s score or an FHA credit score of 580+.

Down Payment: How Much Cash Will You Need?

• With a conventional loan, some South Carolina lenders allow down payments as low as 3% for qualified buyers.

• If using an FHA loan and your credit score is 580 or higher, the minimum down payment can be 3.5% of the purchase price.

• Importantly: through SC Housing’s programs you may qualify for down payment assistance (DPA) — meaning additional funds to cover part or all of your down payment and/or closing costs.

  • Example: The “Palmetto Home Advantage” program provides forgivable DPA in the amount of 0%, 3% or 4% of the loan amount for eligible buyers.

  • Up to $10,000 in down-payment/closing-cost aid available statewide in SC for qualified buyers.

What This Means for YOU in Orangeburg / Bamberg / Calhoun Counties?

• If your credit is 640 or higher, you likely qualify for top‐state programs that make the down payment easier and give you more options.

• Even if your score is 580-639, you still have viable options (like FHA + down payment assistance) to get into a home without waiting years to save 20%.

• Because down payment assistance is available, you may be able to purchase with roughly 3%-4% down rather than 20%.

• Partnering with a local lender and agent (with deep knowledge of local county rules, property tax, and loan programs) is key.

• Remember: Your credit score is important, but lenders also consider debt-to-income ratio (DTI), employment history, property type, and whether you’ve saved funds for reserves or closing costs.

Checklist Before You Buy

• Pull your credit report and get your mortgage pre-approval (see what your score is, where it can be improved).

• Ask your lender about SC Housing programs and how much down payment assistance you might qualify for.

• Determine how much you can afford, not just how much you qualify for.

• Save for closing costs and reserves — even with low down payment, there are additional expenses at closing.

• Choose an agent who serves Orangeburg, Bamberg & Calhoun counties and knows the local market nuances (school zones, taxes, rural vs town properties).

Final Thoughts

You don’t have to wait until you’ve saved a huge down payment or have flawless credit to become a homeowner in the Orangeburg area. With minimum credit scores as low as ~580 for FHA loans, and down-payment assistance programs making significant impact, homeownership is within reach. The key is to get informed early, work with trusted professionals, and take concrete steps now rather than wait indefinitely.

If you’d like help understanding which programs you qualify for or what your specific next step should be, let’s connect — I’m here to guide you through every step of your home-buying journey.