Think you need 20 percent down to buy a home in Dillon? You might not. Between state, federal, and community options, many buyers cover part or even all of their down payment and some closing costs. If you are trying to turn rent into ownership on a sensible budget, the right program and a clear plan can make it possible sooner than you think. In this guide, you will learn which assistance paths are common in Dillon, what it takes to qualify, and the exact steps and documents to move from interest to keys. Let’s dive in.
Down payment help in Dillon: the basics
Down payment assistance, or DPA, helps you reduce the cash you need to close. In South Carolina, the most common sources are state housing programs, federal rural and veteran options, and grants or second mortgages delivered through local banks and nonprofits. Most programs require you to live in the home as your primary residence and complete a homebuyer education course.
Assistance can be structured as a forgivable grant, a deferred 0 percent second mortgage that is forgiven after you meet a residency period, or a low‑interest repayable second mortgage. The right fit depends on your income, credit, the home price, where the home sits in Dillon County, and which lenders participate.
Program options to explore
SC Housing mortgage plus assistance
South Carolina’s state housing finance agency offers low fixed‑rate mortgages and can pair them with down payment and closing cost assistance. You apply through participating lenders who are set up to package both the mortgage and the assistance. Many borrowers complete a HUD‑approved homebuyer education course as part of the process. Check current income and purchase price limits for Dillon County with the program administrator or a participating lender.
USDA Rural Development
USDA Single‑Family Housing programs serve qualified rural areas and often allow up to 100 percent financing. Much of Dillon County is rural or small‑town, so parts of the county may qualify. You still need funds for closing costs, and some borrowers combine USDA with local assistance where permitted. Confirm property eligibility using USDA maps and check Dillon County income limits based on household size.
VA loans for eligible service members
If you are an eligible veteran or active‑duty service member, VA loans can offer no down payment and flexible closing cost options. Lenders can pair VA financing with certain assistance, depending on program rules. Eligibility and how assistance can be combined will vary, so ask a lender who handles VA and local DPA regularly.
FHA and conventional with DPA
FHA loans require as little as 3.5 percent down. Conventional programs backed by Fannie Mae and Freddie Mac can start at 3 percent down. Banks, credit unions, and nonprofits sometimes add grants or second‑mortgage assistance on top of these. Availability changes by lender and funding cycles, so it pays to ask participating lenders about current offers that work in Dillon County.
FHLB and community programs
Federal Home Loan Bank member institutions often deliver grants or affordable second mortgages for down payment needs. Local governments also sometimes use HOME or CDBG funds to help qualified buyers. Ask local member banks and the Dillon County or City of Dillon community development office about active programs and how to apply.
Who typically qualifies
Eligibility varies by program, but you can use this checklist to gauge fit:
- First‑time buyer status: Many programs define this as no ownership of a principal residence in the past 3 years. Some offer exceptions, including for veterans or targeted areas.
- Income limits: Assistance often ties to Area Median Income and household size. Limits are updated annually, so verify with each program.
- Purchase price caps: Programs may set a maximum home price for Dillon County. Check caps before you shop.
- Credit and DTI: Minimum credit scores and standard debt‑to‑income guidelines apply. Lenders may have overlays beyond program minimums.
- Property eligibility: Most programs require a primary residence. Single‑family homes are common; some allow condos or manufactured homes with additional approvals.
- Occupancy and status: Expect a requirement to occupy within a set period and to confirm U.S. citizenship or eligible immigration status if the program requires it.
- Homebuyer education: Many programs require a HUD‑approved course and a certificate before closing.
- Repayment terms: Confirm whether assistance is forgivable, deferred, or repayable and what happens if you sell or refinance early.
Your step‑by‑step path
- Preliminary research
- Identify which programs might fit your situation. If you are considering USDA, check property eligibility in Dillon County and review income limits. For state assistance, review SC Housing guidance and ask about participating lenders.
- Check credit and finances
- Pull your credit, scan for errors, and address high‑interest balances that could hurt your debt‑to‑income ratio. Start gathering recent pay stubs, W‑2s, and bank statements so you are ready to move quickly.
- Get pre‑approved with a participating lender
- Choose a lender who actively works with SC Housing, USDA, VA, or FHLB programs. Your pre‑approval should outline loan options, estimated assistance, and your target price range in Dillon.
- Confirm matching programs
- With your lender, identify which DPA you qualify for and what paperwork, education, and timelines are required. Ask whether the mortgage and assistance applications can be submitted together.
- Complete required education
- Enroll in a HUD‑approved homebuyer class. Save your certificate and share it with your lender and the assistance administrator.
- Shop and secure a contract
- Work with your agent to ensure the property fits price and program eligibility. For USDA, confirm the address on the eligibility map before making an offer.
- Submit full applications
- Your lender packages the mortgage and assistance applications, orders the appraisal, and sends your file to underwriting. Respond quickly to any document requests.
- Underwriting and approval
- Clear conditions, then obtain an assistance commitment letter if your program issues one. Review estimated closing costs and any second‑mortgage or grant terms.
- Close and move in
- Assistance funds at closing as a grant or second mortgage. Review the note, forgiveness schedule, and any recapture rules. Move in on time and keep your records.
Document checklist
Bring these items together early. Most programs will request many of the same documents.
Identification and status
- Government photo ID for each borrower
- Social Security numbers and birthdates
- Proof of U.S. citizenship or eligible immigrant status if required
Income documentation
- Recent pay stubs, typically 30 days
- W‑2 forms for the past 1 to 2 years
- Federal tax returns for 2 years and a signed income verification form
- If self‑employed: 2 years of personal and business returns, profit and loss, and year‑to‑date financials
Assets and gifts
- Two months of bank statements for checking and savings
- Retirement or investment statements if used for reserves
- Gift letter and donor documentation if using gift funds
Employment and verification
- Employer contact information
- Written verification of employment if requested
- Offer letter or contract for new employment if applicable
Liabilities and credit
- Current statements for auto, student loans, and credit cards
- Documentation for alimony or child support if applicable
- Explanations for credit issues when needed
Property and purchase items
- Signed purchase agreement
- Sellers’ disclosures
- HOA or condo documents if relevant
- Proof of earnest money deposit
Program‑specific items
- Homebuyer education certificate
- DD‑214 for VA eligibility when applicable
- USDA eligibility support if applicable
- Any program occupancy or residency certifications
Local resources
- South Carolina State Housing Finance and Development Authority: Confirm current programs, income and purchase limits, and participating lenders.
- USDA Rural Development in South Carolina: Verify property eligibility in Dillon County and determine whether a guaranteed or direct loan is appropriate.
- HUD‑approved housing counselors: Complete your education requirement and get guidance on program fit.
- Dillon County or City of Dillon community development offices: Ask about HOME or CDBG‑funded down payment programs and nonprofit partnerships.
- Local banks, credit unions, and mortgage brokers: Look for lenders who regularly close SC Housing, USDA, VA, and FHLB assistance.
- Federal Home Loan Bank Atlanta member banks and regional nonprofits: Ask about current grant funding and how to apply through local member institutions.
Avoid common pitfalls
- Start early: Assistance funds can be limited or first‑come. Begin your pre‑approval and education before you shop.
- Verify the rules: Program terms, limits, and lender participation change. Always confirm with the program administrator or a participating lender.
- Know the strings: Understand forgiveness schedules, refinance restrictions, and recapture rules before you sign.
- Check the property: Appraisal value, property condition, and eligibility criteria can affect approval. Confirm details before you finalize an offer.
- Use participating lenders: If your preferred lender does not participate, ask for a referral to one who does so you do not lose time.
Get moving in Dillon
The sooner you line up the right lender and program, the easier your home search becomes. If you want help sorting the options and want a quick path to pre‑approval with lenders who regularly work with SC Housing, USDA, VA, and FHLB programs, connect with The Kirk Stalvey. You will get local guidance, introductions to participating lenders, and a clear plan to use assistance to your advantage.
FAQs
What is down payment assistance for Dillon homebuyers?
- It is funding that reduces the cash you need to close, often as a forgivable grant or a low or zero interest second mortgage layered with your primary loan.
Can I buy with little or no money down in Dillon?
- Yes, depending on eligibility. USDA and VA can offer zero down for qualified borrowers, and SC Housing or lender grants can reduce the down payment on FHA or conventional loans.
Do I have to be a first‑time buyer to get help?
- Often, but not always. Many programs follow the 3‑year rule, while some allow exceptions for veterans or targeted areas. Always verify the specific program.
Can I combine USDA with local assistance?
- Sometimes. It depends on program rules and lender participation. Your lender will confirm whether USDA can be layered with grants or seconds.
What credit score do I need for assistance?
- Minimums vary by loan type and program, and lenders may add their own requirements. Your participating lender will review your credit and advise your best path.
Will I have to repay the assistance?
- It depends. Some assistance is forgiven after a residency period, some is deferred at 0 percent, and some is a repayable second mortgage. Review terms before closing.
How long does the DPA process take from pre‑approval to close?
- Timelines vary by program and funding cycles. Starting education and documentation early helps you close on schedule once under contract.
Are condos or manufactured homes eligible?
- Many programs allow them, but extra criteria or approvals may apply. Confirm property type eligibility with your lender and the program administrator.
