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New Construction loans in South Carolina

Quick answer

Buying a newly built home in South Carolina uses a standard FHA (3.5% down), conventional (3%–5%), VA or USDA (0%) purchase loan; building your own uses a construction-to-permanent loan. On a $236,700 home, 3.5% down is about $8,285, and builder incentives are capped by each program.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

New Construction loan snapshot for South Carolina

ItemEstimate
Minimum down payment0%–20% (by loan program)
Minimum credit score580–680 (by loan program)
Typical SC home value$236,700
3.5% down on typical home$8,285
20% down on typical home$47,340
Avg. effective property tax0.51%/yr (~$100/mo)
Income for typical home (31% rule)$71,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which South Carolina programs pair with New Construction loans?

  • Homebuyer Program: A fixed-rate first mortgage with down payment assistance for eligible buyers.
  • Palmetto Heroes: Lower-rate loans and assistance for teachers, first responders, nurses and veterans.

Details and current limits: SC Housing.

Buying a new home from a builder vs. building your own: what's the difference?

Most buyers of new homes buy from a production or spec builder: the builder owns the land, builds the house and sells it to you. You finance it with a normal purchase mortgage that closes when the home is complete and has a certificate of occupancy. If the home isn't finished yet, the builder's contract usually sets a deposit and an estimated completion date, and your rate lock has to cover the wait.

Building your own (a custom home on land you own or are buying) works differently. Because there's no finished house to secure a regular mortgage, lenders use a construction loan that pays the builder in stages (draws) as work is inspected, then either converts to a permanent mortgage or is paid off by one.

Construction-to-permanent (one-time close) vs. two-time close

One-time close reduces paperwork and protects you if rates or your finances change during the build. Two-time close can offer more lender choice and lets you shop the permanent mortgage after the home is done.

FeatureOne-time closeTwo-time close
ClosingsOne — construction and mortgage togetherTwo — construction loan, then a separate mortgage
Closing costsOne setTwo sets
RatePermanent rate usually set at the first closingMortgage rate set when you close the second loan
Re-qualifyingNo second approvalYou must qualify again after the build
ProgramsFHA, VA, USDA and conventional (Fannie Mae/Freddie Mac) versions exist; fewer lenders offer themWidely available; construction loan is often interest-only

New Construction loans in South Carolina cities

New Construction in CharlestonNew Construction in ColumbiaNew Construction in North CharlestonNew Construction in Mount PleasantNew Construction in Rock HillNew Construction in GreenvilleNew Construction in SummervilleNew Construction in Goose CreekNew Construction in SumterNew Construction in FlorenceNew Construction in GreerNew Construction in SpartanburgNew Construction in Hilton Head IslandNew Construction in Myrtle BeachNew Construction in AikenNew Construction in BlufftonNew Construction in AndersonNew Construction in Fort MillNew Construction in Carolina ForestNew Construction in ConwayNew Construction in MauldinNew Construction in Simpsonville

Frequently asked questions

Yes. New Construction loans are available statewide in South Carolina through approved lenders, subject to county loan limits where they apply.

Often yes. SC Housing and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

Answer a few questions on Purchase Mortgage Loan and we'll match you with lenders and loan officers in our network who serve South Carolina.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.