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South Carolina Launches Enhanced Mortgage Tax Credit Program | HUD Articles | K.M. Minemier & Associates
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South Carolina Launches Enhanced Mortgage Tax Credit Program

September 16, 2016

South Carolina homebuyers have a powerful tool to make their mortgages more affordable and save thousands of dollars each year that would have otherwise been paid in taxes. The SC Mortgage Tax Credit Program is a Mortgage Credit Certificate (MCC) Program administered by the South Carolina State Housing Finance and Development Authority (SC Housing) that provides a federal income tax credit to qualified homebuyers of up to $2,000 per calendar year for every year they occupy the home as their primary residence*.

The SC Mortgage Tax Credit Program will allow qualified homebuyers to save thousands of dollars in mortgage interest payments by taking a tax credit of 50 percent on their federal income tax – up to a maximum of $2,000 per calendar year.  This could result in substantial savings over the life of a mortgage loan – savings that the homeowner can keep, rather than paying in taxes.

Spend A Little! Save A Lot!

The cost of the SC Mortgage Tax Credit is just $500, with lenders being able to charge up to an additional $200 processing fee. The cost of obtaining the credit can be paid by the seller of the home as well.

Who Qualifies?

To qualify, a homebuyer must meet certain conditions:

  • The homebuyer is purchasing a primary residence in South Carolina; AND
  • The homebuyer is a first-time homebuyer, has not owned a home in the last three years, or buys a home in a “targeted” county; AND
  • The homebuyer occupies the home as a primary residence; AND
  • Household income** falls within the limits established for the county in which the primary residence is being purchased; AND
  • The purchase price** is within the limits established for the county in which the primary residence is being purchased.

**Household income limits and home purchase price limits vary by household size and by county.

The home may be new construction or an existing single-family home.


What Type of Loan Can It Be Used With?

The SC Mortgage Tax Credit may be used with Fannie Mae, Freddie Mac, conventional, fixed rate, adjustable rate, FHA, VA and USDA-Rural Development financing.  It is not available for SC Housing bond-financed loans, FHA 203(k) or USDA 502 direct loans.

How Does Someone Qualify?

The program is available to homebuyers through a statewide network of qualified lenders. Contact a qualified lender today to determine if you qualify. The lender will submit the application on behalf of the homebuyer. A list of qualified lenders can be found at

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