South Carolina Mortgage Rates 2026 — Complete Guide to SC Home Loans
Published: June 15, 2026 | Updated: July 7, 2026 | Reading time: 18 minutes
By Mortgage Calculator Pro Editorial Team | Reviewed by NMLS-licensed mortgage professionals
South Carolina Mortgage Rates: June 2026 Snapshot
South Carolina home buyers in 2026 are facing a mortgage landscape that's both challenging and full of opportunity. With 30-year fixed rates hovering around 6.625% and the state's famously low property tax rate of 0.57%, SC remains one of the more affordable states for homeownership in the Southeast.
Current SC Mortgage Rates at a Glance
| Loan Type | Rate | APR | Monthly Payment* |
|---|---|---|---|
| 30-Year Fixed | 6.625% | 6.702% | $1,823 |
| 15-Year Fixed | 5.875% | 5.989% | $2,378 |
| 5/1 ARM | 6.125% | 6.450% | $1,712 |
| FHA 30-Year | 6.375% | 7.150% | $1,945 |
| VA 30-Year | 6.125% | 6.480% | $1,698 |
* Based on $300,000 home with 10% down. Property tax included at SC rate of 0.57%.
Why South Carolina Is a Great Place to Buy
1. Low Property Taxes
South Carolina's effective property tax rate of 0.57% is one of the lowest in the nation. For a $300,000 home, that's just $1,710/year — compared to $3,000+ in many other states. Over 30 years, this saves SC homeowners approximately $40,000+ compared to the national average.
2. No State Tax on Mortgage Interest
South Carolina allows homeowners to deduct mortgage interest on state tax returns, just like the federal deduction. This effectively lowers your cost of borrowing.
3. Growing Job Market
Major employers like BMW (Spartanburg), Boeing (Charleston), and Greenville's growing tech sector are driving population growth and housing demand. The state's population grew 1.7% in 2025, outpacing the national average.
4. Affordable Housing
Despite recent appreciation, SC home prices remain well below the national median. The state median home value of $310,000 is approximately 25% below the US median.
SC Mortgage Rates by City
Mortgage rates can vary by city due to local lender competition, property taxes, and housing market conditions.
| City | Avg Home Price | YoY Change | Affordability |
|---|---|---|---|
| Charleston | $485,000 | +4.2% | Moderate |
| Columbia | $285,000 | +3.8% | High |
| Greenville | $365,000 | +5.1% | Moderate |
| Myrtle Beach | $325,000 | +6.3% | Moderate |
| Spartanburg | $245,000 | +4.5% | High |
SC First-Time Home Buyer Programs
SC Housing Mortgage Program
The South Carolina State Housing Finance and Development Authority offers:
- Down payment assistance: Up to $8,000 in forgivable loans
- Mortgage Credit Certificate (MCC): Federal tax credit of up to $2,000/year
- Below-market rates: SC Housing loans often 0.25-0.50% below market
USDA Loans in SC
Many areas of South Carolina qualify for USDA loans (0% down). Qualifying areas include most of the state outside major metro centers. Check the USDA eligibility map for your specific location.
VA Loans in SC
With major military bases (Fort Jackson, Shaw AFB, Joint Base Charleston), SC has a large veteran population. VA loans offer 0% down, no PMI, and competitive rates for eligible veterans.
How to Get the Best SC Mortgage Rate
- Improve your credit score: Every 20 points above 740 can save you 0.125-0.25%
- Shop at least 3 lenders: Rate differences of 0.25-0.50% are common
- Consider buying points: 1 point (1% of loan) typically reduces rate by 0.25%
- Choose the right loan term: 15-year rates are ~0.75% lower than 30-year
- Look into SC Housing programs: Below-market rates for qualifying buyers
SC Housing Market Forecast 2026-2027
Experts predict:
- Home prices will continue rising 3-5% annually
- Rates may decrease slightly in late 2026 if inflation continues to cool
- Inventory remains tight, especially in Charleston and Greenville
- First-time buyer demand will remain strong due to SC's affordability
SC Mortgage Calculator: Your Monthly Payment by Loan Type
Your monthly mortgage payment in South Carolina depends on your loan type, down payment, credit score, and the specific city where you're buying. Here's a breakdown of estimated monthly payments for different scenarios using our SC mortgage calculator:
| Scenario | Home Price | Down Payment | Rate | P&I | Taxes & Insurance | Total Monthly |
|---|---|---|---|---|---|---|
| Conventional 30yr | $285,000 | 10% | 6.625% | $1,642 | $343 | $1,985 |
| FHA 30yr | $285,000 | 3.5% | 6.375% | $1,716 | $365 | $2,081 |
| VA 30yr | $285,000 | 0% | 6.125% | $1,732 | $338 | $2,070 |
| USDA 30yr | $245,000 | 0% | 6.250% | $1,508 | $290 | $1,798 |
| 15yr Conventional | $285,000 | 20% | 5.875% | $1,897 | $298 | $2,195 |
* Based on Columbia, SC median home price. P&I = Principal & Interest. Taxes at SC effective rate 0.57%. Insurance estimated at $1,200/year. PMI/MIP not included — use our calculator for exact figures.
Key insight: While VA and USDA loans offer $0 down, FHA's 3.5% down option results in a slightly lower monthly payment than VA on the same home price because the lower FHA rate reduces the P&I enough to offset the MIP cost.
How SC Mortgage Rates Compare to the National Average
South Carolina mortgage rates typically run 0.125% to 0.25% below the national average, making the state even more attractive for home buyers. Here's how SC stacks up against other states and the national benchmark:
| Location | 30-Year Fixed Rate | 15-Year Fixed Rate | Monthly Payment* |
|---|---|---|---|
| South Carolina | 6.625% | 5.875% | $1,823 |
| National Average | 6.875% | 6.125% | $1,968 |
| California | 6.750% | 6.000% | $2,450 |
| Florida | 6.875% | 6.125% | $2,310 |
| Texas | 6.625% | 5.875% | $1,950 |
| North Carolina | 6.625% | 5.875% | $1,875 |
| Georgia | 6.750% | 6.000% | $1,920 |
* Based on $300,000 home with 10% down and local property tax rates applied. Rates as of July 2026.
Why are SC rates lower? South Carolina benefits from a combination of factors: moderate housing demand (lower price appreciation than Florida or California), strong competition among local lenders, a lower cost of living that reduces lender risk premiums, and a stable housing market with fewer foreclosure risks. However, coastal areas like Charleston may see slightly higher rates due to higher property values and insurance costs.
Tips for Getting the Best Mortgage Rate in South Carolina
Getting the lowest possible mortgage rate in SC requires preparation and strategy. Here are 7 expert tips to help you secure the best rate:
- Improve your credit score to 740+ — This is the single most impactful step. Every 20-point increase above 740 can save you 0.125% to 0.25% on your rate. Check your credit reports at AnnualCreditReport.com and dispute any errors before applying.
- Shop at least 3-5 lenders — Rate differences of 0.25% to 0.50% are common between lenders in SC. Get quotes from South State Bank, First Citizens, United Community Bank, and 2-3 online lenders. A 0.25% difference on a $300,000 loan saves you $44/month = $15,840 over 30 years.
- Consider buying discount points — One point (1% of the loan amount) typically reduces your rate by 0.125% to 0.25%. On a $300,000 loan, $3,000 spent on points could save you ~$45/month. Break-even is typically 5-7 years — worth it if you plan to stay.
- Choose the right loan term — 15-year fixed rates are approximately 0.75% lower than 30-year rates. If you can afford the higher monthly payment ($2,378 vs $1,823 on $300k), you'll save over $150,000 in total interest over the life of the loan.
- Look into SC Housing programs — These government-backed loans often offer 0.25% to 0.50% below market rates. Check your eligibility at SC Housing's website. Income limits apply (typically up to $85,000 for a single person in most SC counties).
- Lock your rate at the right time — Monitor rate trends using our SC rate tracker. When rates dip, lock in immediately. Don't float the rate for more than 30 days unless you're confident rates will drop — they can rise just as quickly.
- Increase your down payment — Going from 5% to 10% down can reduce your rate by 0.125% to 0.25% and eliminate PMI if you reach 20%. If you're close to the 20% threshold, consider waiting a few extra months to save — the long-term savings are substantial.
Calculate Your SC Mortgage Payment
Use our South Carolina mortgage calculator to get an exact payment estimate with SC-specific taxes and insurance.