Conventional Loan Requirements South Carolina
Know exactly what you need to qualify for a conventional mortgage in South Carolina. Clear requirements, simple process.
Check Your Eligibility Speak with a Loan OfficerWhat Are the Requirements for a Conventional Loan in SC?
Conventional loans in South Carolina are governed by Fannie Mae and Freddie Mac guidelines. These loans are not insured by the government, which means lenders require borrowers to meet specific credit, income, and asset standards. Here is a full breakdown of what you need to qualify.
Conventional Loan Requirements in South Carolina
Minimum Credit Score
A credit score of at least 620 is required. Borrowers with scores of 740 or higher typically receive the best rates and lowest PMI costs.
Down Payment
As low as 3% for first-time buyers through programs like HomeReady or Home Possible. Most borrowers put down 5% to 20%. Twenty percent eliminates PMI.
Debt-to-Income (DTI)
Maximum DTI is typically 45%. Borrowers with excellent credit and significant reserves may qualify with DTI up to 50%.
Employment & Income
Two years of employment history required. W-2 employees use pay stubs and tax returns. Self-employed borrowers need two years of tax returns showing stable income.
Loan Limits (2026)
Conforming loan limit is $806,500 in most SC counties including Dorchester, Charleston, and Berkeley. Higher-cost areas may have higher limits.
Private Mortgage Insurance
PMI is required when down payment is less than 20%. It can be canceled once you reach 20% equity, unlike FHA mortgage insurance.
Reserves
Lenders may require 2 to 6 months of reserves (mortgage payment savings) depending on credit score, down payment, and loan amount.
Property Appraisal
An independent appraisal is required to confirm the property value supports the loan amount. The property must meet conventional lending condition standards.
Documents Required to Apply
When applying for a conventional loan in South Carolina, be prepared to provide the following documents:
- Two most recent years of federal tax returns
- Two most recent W-2 statements or 1099s
- Two most recent pay stubs
- Two most recent bank and asset account statements
- Government-issued photo ID
- Social Security number for credit pull
- Signed purchase agreement (for purchase transactions)
- Landlord contact information for the past two years (if renting)
Related Resources
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