Conventional Loan Guide for First-Time Buyers in South Carolina

Conventional Loan

Conventional Loan Guide for First-Time Buyers in South Carolina

Reviewed by the HomeMath editorial team Updated 2026-08-06

Key takeaways

Minimum credit score typically 620 for a conventional loan
Down payment can start at 5% but may be as low as 3% with private mortgage insurance
Private mortgage insurance is required if the down payment is less than 20%
Loan amounts must stay within the FHFA conforming loan limit for South Carolina counties
South Carolina first‑time‑buyer programs can provide down‑payment assistance

Conventional loans are mortgage products that are not insured or guaranteed by the federal government. They are sold to private lenders and often follow the underwriting standards of Fannie Mae and Freddie Mac, making them a common choice for first‑time homebuyers in South Carolina.

Eligibility basics

Credit score: Most lenders look for a minimum of 620, though higher scores can secure better rates.
Debt‑to‑income (DTI) ratio: Generally, a DTI of 45% or lower is preferred.
Employment history: Two years of steady employment or consistent income is typical.

Down payment and mortgage insurance

Conventional loans allow down payments as low as 3% when a borrower opts for private mortgage insurance (PMI). If you can put down 20% or more, PMI is not required, reducing your monthly payment.

Credit and income requirements

Lenders review your credit report, income documentation, and assets to determine eligibility. A higher credit score can offset a slightly higher DTI, and documented savings can demonstrate your ability to cover closing costs and reserves.

South Carolina considerations

Attorney‑driven closings: Most SC real‑estate transactions require a licensed attorney to oversee the closing, which can affect timing and fees.
State assistance: South Carolina Housing offers down‑payment assistance programs specifically for first‑time buyers, which can be combined with a conventional loan.

The application process

Start by getting pre‑approved: a lender will run a credit check and request financial documents. Once pre‑approved, you can make offers with confidence, knowing your buying power.

Closing and costs

In addition to the down payment, expect to pay appraisal fees, attorney fees, title search costs, and prepaid items such as property taxes and homeowner’s insurance. These costs typically range from 2% to 5% of the purchase price.

This article provides general information and is not personalized financial advice. Consult a qualified mortgage professional for advice tailored to your situation.

FAQ

Can I qualify for a conventional loan with a down payment under 5%?

Yes, many lenders will accept a down payment as low as 3% when you agree to pay private mortgage insurance, though the exact minimum can vary by lender.

Do I have to pay private mortgage insurance (PMI) on a conventional loan?

PMI is required if your down payment is less than 20% of the purchase price. Once you reach 20% equity, you can request cancellation of PMI.

How does the attorney‑driven closing process in South Carolina affect me?

In South Carolina, a licensed attorney typically handles the closing, reviewing the deed, title, and loan documents. This can add attorney fees but also provides an extra layer of legal protection.

What first‑time‑buyer assistance programs are available in South Carolina?

South Carolina Housing offers down‑payment assistance and low‑interest loan options for eligible first‑time buyers, which can be paired with a conventional mortgage.

How long does it take to get a conventional loan approved?

The approval timeline varies, but after submitting a complete application, most lenders can provide a decision within 30 to 45 days, assuming all documentation is in order.

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