USDA Home Loans in South Carolina
100% financing for homes in eligible rural and suburban areas
Check Eligibility NowWhat Is a USDA Home Loan?
USDA home loans, backed by the U.S. Department of Agriculture, are designed to help low-to-moderate income families purchase homes in eligible rural and suburban areas. The program’s biggest advantage? Zero down payment required, making homeownership accessible even if you haven’t saved for years.
Contrary to popular belief, “rural” doesn’t mean farmland. Many suburban areas around Charleston, Columbia, Greenville, and other South Carolina cities qualify for USDA loans.
💵 No Down Payment
Finance 100% of your home purchase — perfect for first-time buyers or those without large savings.
📉 Lower Interest Rates
USDA loans often have competitive rates compared to conventional and FHA loans.
✅ Flexible Credit Requirements
Lower credit score standards and more lenient underwriting than conventional financing.
🏘️ Expanded Geography
Covers rural and many suburban areas — you might be surprised what qualifies!
USDA Loan Eligibility Requirements
To qualify for a USDA home loan in South Carolina, you’ll need to meet these basic requirements:
1. Property Location
Your home must be located in a USDA-eligible area. The USDA defines “rural” broadly, and many suburban communities qualify. Use the USDA Eligibility Map to check if your desired area is eligible.
2. Income Limits
Your household income must be at or below 115% of the area median income (AMI). Income limits vary by county and household size.
| County | 1-4 Members | 5-8 Members |
|---|---|---|
| Charleston County | $110,650 | $146,100 |
| Greenville County | $103,350 | $136,450 |
| Richland County (Columbia) | $100,700 | $132,950 |
| Most Rural SC Counties | $103,500 | $136,650 |
Note: Income limits are updated annually. Check with your lender for current limits in your area.
3. Credit Score
While the USDA doesn’t set a minimum credit score, most lenders require at least a 640 credit score for automatic underwriting approval. Borrowers with lower scores may still qualify through manual underwriting.
4. Debt-to-Income Ratio
Your total monthly debts (including the new mortgage payment) should not exceed 41% of your gross monthly income, though exceptions may apply.
5. Primary Residence
The home must be your primary residence — USDA loans cannot be used for investment properties or vacation homes.
USDA Loan Types
The USDA offers several loan programs:
USDA Guaranteed Loan
The most common program, offered through approved mortgage lenders. The USDA guarantees the loan, reducing lender risk and allowing for zero down payment.
USDA Direct Loan
Offered directly by the USDA to very low-income applicants. These loans have income limits at 50-80% of AMI and may offer payment assistance.
USDA Loan Costs
While USDA loans don’t require a down payment or PMI, they do have two fees:
Upfront Guarantee Fee
1% of the loan amount, typically rolled into the loan so you don’t pay out of pocket at closing.
Annual Fee
0.35% of the loan balance, paid monthly. This is significantly lower than FHA mortgage insurance.
Example: On a $250,000 loan, the upfront fee would be $2,500 (financed into the loan), and the annual fee would be about $73/month.
Eligible Areas in South Carolina
Many South Carolina communities qualify for USDA loans, including:
- Near Charleston: Summerville (partial), Goose Creek (partial), Moncks Corner, and surrounding areas
- Near Columbia: Lexington (partial), Irmo (partial), Chapin, and outlying communities
- Near Greenville: Greer (partial), Simpsonville (partial), Mauldin (partial), and rural Upstate areas
- Beaufort & Hilton Head: Bluffton (partial) and surrounding Lowcountry areas
- Rural Counties: Orangeburg, Sumter, Florence, Anderson, Spartanburg, and many others
Use the USDA Property Eligibility Tool to verify specific addresses.
USDA Loan vs. Other Loan Types
| Feature | USDA Loan | FHA Loan | Conventional |
|---|---|---|---|
| Down Payment | 0% | 3.5% | 3-20% |
| Credit Score | 640+ (typical) | 580+ | 620+ |
| Mortgage Insurance | 1% upfront + 0.35% annual | 1.75% upfront + 0.55-0.85% annual | PMI if < 20% down |
| Location Restrictions | USDA-eligible areas only | None | None |
| Income Limits | Yes | No | No |
Steps to Get a USDA Loan
- 1. Check Eligibility: Verify income, credit, and property location
- 2. Start My Pre-Approval →: Work with a USDA-approved lender
- 3. Find Your Home: Search within USDA-eligible areas
- 4. Submit Application: Complete the loan application and provide required documentation
- 5. USDA Approval: The lender submits your loan for USDA approval
- 6. Close: Finalize your purchase and move in with zero down payment
Ready to Explore USDA Financing?
Find out if you qualify for 100% financing in South Carolina. Let’s check your eligibility and get you pre-approved today.
Get Started NowWhy Work With a USDA Loan Specialist?
Not all lenders are approved to offer USDA loans. Working with an experienced USDA lender ensures:
- Accurate income and eligibility calculations
- Faster processing and smoother USDA approval
- Guidance on eligible properties and areas
- Expert navigation of USDA guidelines and requirements
Frequently Asked Questions
Can I use a USDA loan to buy a fixer-upper?
Yes, but the home must meet USDA property standards at the time of purchase. Major repairs may need to be completed before closing.
Are USDA loans only for first-time buyers?
No. USDA loans are available to anyone who meets the income, credit, and property location requirements, regardless of whether you’ve owned a home before.
How long does USDA approval take?
USDA loan processing typically takes 30-45 days, though this can vary based on loan volume and documentation completeness.
Can I refinance with a USDA loan?
Yes. The USDA offers a Streamline Refinance program for existing USDA borrowers looking to lower their rate or payment.
Questions About USDA Financing?
Our USDA loan specialists are here to help you understand your options and find the best path to homeownership.
Talk to a USDA Loan Expert