Homebuyer Programs in Hilton Head, SC (2026)

Last updated March 22, 2026 | Population: 38,297 | Median home price: $545,000 | Est. closing costs: $11,000 - $16,500

Skyline of Hilton Head Island, SC

Hilton Head Island is a popular resort town in Beaufort County, South Carolina, known for its beaches, golf courses, and growing year-round community. With a median home price around $545,000, the island has one of the higher price points in the state, making assistance programs especially valuable. The SC Housing Homebuyer Program offers up to $10,000 in forgivable down payment assistance with income limits up to $127,680 for Beaufort County, and the Palmetto Home Advantage program provides up to 4% of the loan amount as a forgivable second mortgage with no first-time buyer requirement. The Beaufort Jasper Housing Trust offers up to $12,000 in forgivable down payment assistance for buyers in Beaufort and Jasper Counties, and CommunityWorks provides additional forgivable DPA loans of up to $10,000 (with employer-partnered programs offering up to $25,000 for qualifying workers). Habitat for Humanity of the Lowcountry is actively building homes on Hilton Head Island with no-interest mortgages for families earning 30-80% AMI. By combining state and local resources, Hilton Head buyers may be able to offset a significant portion of their closing costs.

Top Homebuyer Programs in Hilton Head Island

Beaufort Jasper Housing Trust Homebuyer Assistance
Type:
Forgivable Loan
Amount:
Up to $12,000 in forgivable down payment assistance
First-time only:
Yes
FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No
CommunityWorks Lowcountry Down Payment Assistance
Type:
Forgivable Loan
Amount:
Up to $10,000 in forgivable down payment and closing cost assistance (employer-partnered programs may offer up to $25,000)
First-time only:
Yes
Founders Federal Credit Union First-Time Homebuyer Program
Type:
Zero-Interest Loan
Amount:
Finance up to $350,000 with only $1,000 minimum in the transaction; no PMI required
First-time only:
Yes
Habitat for Humanity of the Lowcountry Homeownership Program
Type:
Zero-Interest Loan
Amount:
No-interest mortgage with homes sold at no profit. Monthly payments set at 30% or less of household income.
First-time only:
Yes
Palmetto Heroes Program
Type:
Forgivable Loan
Amount:
$10,000 in forgivable down payment assistance
First-time only:
Yes
Palmetto Home Advantage
Type:
Forgivable Loan
Amount:
Up to 4% of the first mortgage loan amount
First-time only:
No
SC Housing Homebuyer Program
Type:
Forgivable Loan
Amount:
Up to $10,000 in forgivable down payment assistance
First-time only:
Yes

How to Apply

  1. Step 1:

    Check your eligibility. For the SC Housing Homebuyer Program, the income limit for Beaufort County is up to $127,680 for one or two-person households. The Beaufort Jasper Housing Trust offers up to $12,000 in additional forgivable DPA. Review current limits on the SC Housing website or call (803) 896-2211.

  2. Step 2:

    Complete homebuyer education. SC Housing programs require a HUD-approved homebuyer education course. CommunityWorks Carolina offers homebuyer education workshops in the Lowcountry area. Contact them through communityworkscarolina.org or call (800) 569-4287 to find a HUD-approved counselor.

  3. Step 3:

    Contact a participating lender. SC Housing works with over 100 approved lenders statewide. Ask about the SC Housing Homebuyer Program, Palmetto Home Advantage, and Palmetto Heroes (if you qualify as a teacher, nurse, veteran, or first responder). Also contact the Beaufort Jasper Housing Trust at bjht.org for additional DPA options.

  4. Step 4:

    Get pre-approved for a mortgage. Your lender will determine which programs you qualify for and the maximum assistance available. Have your income documentation, tax returns, and employment history ready. If you work for the City of Beaufort, Beaufort Memorial Hospital, or the Town of Bluffton, ask about employer-specific DPA through CommunityWorks.

  5. Step 5:

    Find a home within program limits. The SC Housing Homebuyer Program has county-specific purchase price limits for Beaufort County that are updated annually. Your lender can confirm the current limits for all programs you're using.

  6. Step 6:

    Submit your application and close. Once you have a signed purchase contract, your lender will process your program applications alongside your mortgage. BJHT assistance is first-come, first-served and requires an executed sales contract. Plan for a typical closing timeline of 30-45 days.

Frequently Asked Questions

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