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By Tyler Thompson · Licensed Real Estate Agent · Updated March 21, 2026

Homebuyer Programs in Spartanburg, SC (2026)

Population: 39,000 | Median home price: $215,000 | Est. closing costs: $4,500 - $6,500

Skyline of Spartanburg, SC

Spartanburg sits in the Upstate region of South Carolina with a median home price around $215,000, making it one of the most affordable metros in the state. First-time homebuyers here can tap into the City of Spartanburg First-Time Homebuyer Program for up to $20,000 in forgivable down payment and closing cost assistance funded through CDBG and HOME grants. At the state level, the SC Housing Homebuyer Program offers up to $10,000 in forgivable DPA with Spartanburg County income limits of $90,500 for 1-2 persons, the Palmetto Home Advantage provides up to 4% of the loan amount for both first-time and repeat buyers, and the Palmetto Heroes Program adds $10,000 for public service professionals and military. Buyers in the Northside neighborhood may qualify for an additional $20,000 through CommunityWorks. Habitat for Humanity of Spartanburg also partners with qualifying families on affordable zero-interest mortgages, and the Spartanburg Housing Authority offers a homeownership program for Housing Choice Voucher holders. By stacking city, state, and federal programs, Spartanburg buyers can potentially cover their entire down payment and closing costs.

City Programs in Spartanburg

City of Spartanburg First-Time Homebuyer Program
Type:
Forgivable Loan
Amount:
Up to $20,000
First-time only:
Yes
Spartanburg Housing Authority HCV Homeownership Program
Type:
Grant
Amount:
Housing Choice Voucher applied toward mortgage payments instead of rent.
First-time only:
No

State Programs in South Carolina

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

Federal Programs

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

Nonprofit Programs

CommunityWorks Northside Down Payment Assistance
Type:
Forgivable Loan
Amount:
Up to $20,000
First-time only:
Yes
Habitat for Humanity of Spartanburg Homeownership
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with zero-interest mortgage and affordable monthly payments
First-time only:
Yes

How to Apply

Step 1:

Check your eligibility. Review income limits for Spartanburg County. The City of Spartanburg program requires income at or below 80% AMI (around $60,000 for a family of four). The SC Housing Homebuyer Program has Spartanburg County limits of $90,500 for 1-2 persons and $104,075 for 3 or more persons. The Palmetto Home Advantage has a statewide limit of $135,750. Confirm you have not owned a home in the past 3 years if applying for first-time buyer programs.

Step 2:

Complete homebuyer education. Take a HUD-approved homebuyer education course, required for the City of Spartanburg program and all SC Housing programs. Contact CommunityWorks Carolina at 864-235-6331 for local course options.

Step 3:

Contact the City of Spartanburg Neighborhood Services Department at 864-580-5011. They administer the city's $20,000 first-time homebuyer program using CDBG and HOME funds and can help you understand local eligibility requirements.

Step 4:

Get pre-approved for a mortgage. Work with an SC Housing-approved lender for state programs (SC Housing Homebuyer or Palmetto Home Advantage), or any FHA, VA, or USDA approved lender. Your lender will help determine which state and federal programs you can combine.

Step 5:

Find a home within program limits. For the city program, the home must be within Spartanburg city limits. The SC Housing Homebuyer Program has a purchase price limit of $450,000. For the CommunityWorks Northside program, the home must be in the Northside neighborhood.

Step 6:

Submit your application. Your lender and the City of Spartanburg will coordinate applications for all applicable programs. Allow 30 to 60 days for processing.

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