First-Time Homebuyer Programs in Spartanburg, SC (2026)

Last updated March 20, 2026 | Population: 39,000 | Median home price: $245,000 | Est. closing costs: $5,000 - $7,500

Skyline of Spartanburg, SC

Spartanburg sits in the Upstate region of South Carolina with a median home price around $245,000, making it one of the more 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. On top of that, the SC Housing Homebuyer Program offers up to $10,000 in forgivable DPA, and the Palmetto Home Advantage program provides up to 4% of the loan amount for both first time and repeat buyers. Buyers in the Northside neighborhood may qualify for an additional $20,000 through CommunityWorks. By stacking city, state, and federal programs, Spartanburg buyers can potentially cover their entire down payment and closing costs.

Top Homebuyer Programs in Spartanburg

SC Housing Homebuyer Program
Type:
Forgivable Loan
Amount:
Up to $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
Palmetto Heroes Program
Type:
Forgivable Loan
Amount:
$10,000 in forgivable down payment assistance
First-time only:
Yes
City of Spartanburg First-Time Homebuyer Program
Type:
Forgivable Loan
Amount:
Up to $20,000
First-time only:
Yes
CommunityWorks Northside Down Payment Assistance
Type:
Forgivable Loan
Amount:
Up to $20,000
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
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
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
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
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
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
CommunityWorks Greenville County Down Payment Assistance
Type:
Forgivable Loan
Amount:
Up to $10,000 forgivable in 8 years or up to $5,000 forgivable in 5 years
First-time only:
Yes
City of Greenville Employee Homebuyer Assistance
Type:
Forgivable Loan
Amount:
Up to $50,000 in down payment and/or closing cost assistance
First-time only:
Yes
Habitat for Humanity of Greenville County Homeownership
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with zero-interest mortgage
First-time only:
Yes
GCRA Homeownership Program
Type:
Forgivable Loan
Amount:
Down payment assistance for affordable home purchase
First-time only:
Yes

How to Apply

  1. Step 1:

    Check your eligibility. Review income limits for Spartanburg County (at or below 80% AMI for the city program, up to $84,800 for SC Housing Homebuyer, up to $135,750 for Palmetto Home Advantage). Confirm you have not owned a home in the past 3 years if applying for first time buyer programs.

  2. Step 2:

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

  3. Step 3:

    Contact the City of Spartanburg Community Development Department. They administer the city's $20,000 first time homebuyer program and can help you understand local eligibility requirements. Visit cityofspartanburg.org for contact information.

  4. 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.

  5. Step 5:

    Find a home within program limits. For the city program, the home must be within Spartanburg city limits. For SC Housing Homebuyer, the purchase price cannot exceed $425,000.

  6. 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.

Frequently Asked Questions

Related Cities

Related Articles