South Carolina VA Home Loans

Start Your VA Pre-Approval

Find out what the South Carolina exemption and the 4 percent legal residence rate are worth on the house you are actually looking at.

No SSN required. No credit pull. Takes about 2 minutes.

Who You’re Actually Working With

J.D. Peck, NMLS #314883. 25+ years originating, 3,100+ closed loans, Scotsman Guide Top Originator 2026. Lending in 49 states. VA files are not a sideline here. They are the practice.

What “No Overlays” Means

An overlay is a credit rule a lender adds on top of VA’s. We don’t add them — we underwrite to VA guidelines. Separate from underwriting, every VA loan must also be eligible for sale or securitization, and Ginnie Mae sets pooling requirements that apply to all lenders and that no lender can waive. Refinances in particular carry seasoning requirements under Ginnie Mae that are broader than VA’s. We’ll tell you upfront if one applies to you.

Full exemption on the dwelling and five acres

The house and the lot, up to five acres, come completely off the ad valorem property tax roll. Not a reduction in assessed value. Not a flat credit. Zero property tax on the qualifying residence.

Two vehicles are exempt too

Up to two private passenger vehicles owned or leased by the qualifying veteran are also exempt. In a state that bills vehicle property tax annually, that is real money on top of the house.

No income test

Eligibility turns on disability, ownership, and residency. There is no household income cap anywhere in the statute.

The standard is total and permanent, certified by VA

S.C. Code 12-37-220(B)(1) uses a functional standard rather than a bare percentage: an inability to perform substantial gainful employment from a medically determinable impairment expected to last twelve months or more or result in death, certified by the county veterans service officer or by VA.

A 2024 change made this dramatically better

Act No. 116 of 2024 lets the exemption apply for the full year in which the veteran becomes permanently and totally disabled, rather than starting the following tax year, and it allows a back-claim on up to the two prior paid tax years.

Surviving spouses no longer get penalized for a filing gap

The same 2024 change lets a qualifying surviving spouse claim the exemption regardless of whether the veteran ever applied for it. The spouse must remain unmarried, live in the home, and own it in fee or for life.

You must also carry the 4 percent legal residence classification

The exemption sits on top of owner-occupied status. If the county has you classified at 6 percent because the legal residence application was never filed, fix that first.

You file with the state, not the county

Applications go to the South Carolina Department of Revenue through MyDORWAY or on paper Form PT-401-I. Processing commonly runs several weeks, so file early and do not assume the county will handle it for you.

Rated Total and Permanent and Still Paying Property Tax?

If you qualified mid-year, or your spouse inherited the home and was told it was too late, there may be up to two prior tax years available to claim back. We will tell you where you stand.

No cost. No obligation.

Owner-occupied is assessed at 4 percent

Your legal residence and qualifying agricultural property are assessed at 4 percent of fair market value. That classification is not automatic on a purchase. You apply for it.

Everything else is assessed at 6 percent

Second homes, rentals, and any property where the legal residence application was never filed sit at 6 percent. Same house, same millage, fifty percent more tax.

What it costs in real dollars

South Carolina’s average effective property tax rate is roughly 0.49 percent of market value at the 4 percent ratio. On a $400,000 home that is roughly $1,960 a year. Stuck at the 6 percent ratio it is closer to $2,940. That is about $82 a month straight into your debt-to-income ratio.

Renting it out more than 72 days breaks it

The legal residence classification requires the property not be rented more than 72 days in a tax year, with limited exceptions. Short-term rental income on a primary residence can quietly reclassify the property.

A purchase is an assessable transfer of interest

Buying the house triggers a value update outside the normal cycle. The prior owner’s tax bill is not your tax bill, and the seller’s disclosure number is often the number a lender escrows. That is how people end up short a few hundred dollars a month in year two.

Reassessment runs on a five-year cycle with a 15 percent cap

Countywide reappraisal happens every five years, and the increase in assessed value attributable to that reassessment is capped at 15 percent within the cycle. Improvements and transfers of interest fall outside the cap.

There is a state wind pool

The South Carolina Wind and Hail Underwriting Association, created under S.C. Code 38-75-330, writes wind and hail coverage in the designated coastal territory as a market of last resort. Every property and casualty insurer doing business in the state participates. It is reached through an agent, not directly.

Coverage often splits into more than one policy

Inland, one homeowners policy covers everything. On the coast you may end up with a homeowners policy, a separate wind and hail policy, and a flood policy. Three premiums, three escrow lines, and three chances for a preapproval built on a single estimate to fall apart.

Percentage wind and hail deductibles are normal

Coastal policies commonly carry a percentage deductible on wind and hail instead of a flat dollar amount. It does not change the monthly payment, but it changes what a named storm actually costs you. Read the declarations page before you waive the inspection contingency.

Flood zone determination changes the math

Federal law requires flood insurance on a federally backed mortgage, VA included, for property in a designated Special Flood Hazard Area. If the borrower does not place a policy, the lender has to, and the cost gets escrowed. We run the determination in week one on anything near tidal water.

Premiums have moved fast

Statewide homeowners premium volume grew from roughly $1.64 billion in 2016 to roughly $3.11 billion in 2024 per NAIC data. A quote from two years ago is not a quote.

We price the address, not the county

Two houses a mile apart in Mount Pleasant can carry very different wind exposure. A real quote on the actual property is the only version that holds up at underwriting.

A licensed attorney must supervise the closing

The South Carolina Supreme Court held in State v. Buyers Service Co. that title certification, document preparation, closing, and recording constitute the practice of law. Doe v. Condon extended it to refinances. Unauthorized practice of law is a felony under S.C. Code 40-5-310.

You choose the attorney

S.C. Code 37-10-102 guarantees the borrower the right to select their own closing attorney, with a $7,500 penalty for a violation. A lender telling you which attorney you must use is a problem, not a policy.

Budget roughly $1,000 to $2,000

Attorney closing fees in South Carolina typically land in that range. It is a real line item that does not exist at the same cost in escrow-company states, and it is a common reason a national call center’s estimate comes in low.

A seller can pay it with no VA cap

Attorney fees are normal allowable closing costs. Under VA rules there is no percentage ceiling on a seller paying your closing costs. That is Bucket 1, separate from the 4 percent concession allowance.

No Minimum Credit Score Overlay

VA publishes no score floor. Most lenders impose one anyway, usually 620. We do not. A refer from automated underwriting starts a manual underwrite. It does not end the file.

We Escrow the Exemption Correctly

A total and permanent rating means zero property tax on the qualifying residence. If your lender is escrowing a full bill, your payment is wrong and your approval is being calculated against money you do not owe.

We Catch the 4 Percent Problem Before Closing

The legal residence application is the difference between roughly $1,960 and $2,940 a year on a $400,000 home. We check the classification, not the seller’s old tax bill.

Coastal Insurance Handled in Week One

Charleston, Beaufort, Myrtle Beach, and the barrier islands need wind, hail, and often flood coverage quoted before you write, not after the appraisal.

$0 Down, No Monthly Mortgage Insurance

With full entitlement there is no down payment requirement and no monthly MI, ever. That is the structural edge over FHA and low-down-payment conventional financing.

Manual Underwriting Is Routine Here

Bankruptcy, foreclosure, collections, a rough stretch after separation. We run manual underwrites regularly using the compensating factors VA actually recognizes.

Purchase, First-Time Use

2.15% with less than 5% down, including zero down. 1.5% with 5% or more down. 1.25% with 10% or more down.

Purchase, Subsequent Use

3.3% with less than 5% down. 1.5% with 5% or more down. 1.25% with 10% or more down.

VA IRRRL Streamline Refinance

0.5% flat, regardless of prior use.

Exempt Entirely

Veterans receiving VA disability compensation at any rating, veterans entitled to compensation who take retirement pay instead, surviving spouses receiving DIC, and Purple Heart recipients on active duty. It shows on your COE and we verify before you pay anything.

Bucket 1: Your Closing Costs, No VA Cap

The seller can pay all of your normal allowable closing costs. Origination, appraisal, title, recording, credit report, prepaid taxes and insurance at customary levels. No VA percentage ceiling. Market-rate discount points for a permanent rate buydown also sit here, uncapped.

Bucket 2: Concessions, Capped at 4%

Anything of value beyond normal closing costs is a concession, capped at 4 percent of the VA reasonable value. It stacks on top of Bucket 1 rather than replacing it.

Paying Off Your Debt

The seller can retire your credit cards, collections, or an auto loan as a concession. Dropping a high monthly payment lowers your debt-to-income ratio and can turn a denial into an approval on the same contract at the same price.

Paying Your Lease Break So You Can Buy Now

An early lease termination penalty on a rental or on-post housing is an allowable concession. It is how a family stops paying rent and closes this month instead of waiting for a lease to run out. We have structured this many times.

Prepaying Your Mortgage Payments

A seller can prepay mortgage payments on your behalf as a concession. When a seller would rather not cut the price, this is often an easier yes, and it does more for your file.

The Funding Fee and a 2-1 Buydown

Both count toward the 4 percent and both are commonly seller-funded. A concession package is often easier to win than a price cut, and it does more for your approval than the price cut would.

Every South Carolina county is at the $832,750 baseline

The 2026 national one-unit conforming baseline is $832,750, and no South Carolina county carries a high-cost designation above it. That includes Charleston, Berkeley, Dorchester, Beaufort, and Horry.

FHA limits are a different program

Charleston-area and Beaufort-area FHA limits sit above the FHA floor, which leads people to assume those counties are high-cost for conforming and VA purposes. They are not. Different program, different math.

If a lender calls your loan a VA jumbo

Ask which VA rule they are citing. With full entitlement there is not one. Score minimums and down payments on larger loans are investor overlays, not VA policy.

Second-tier entitlement is where the baseline matters

If you kept a VA loan at a prior duty station and are buying here on remaining entitlement, we compute the exact zero-down ceiling against the $832,750 baseline.

Columbia and the Midlands

Fort Jackson is the Army’s largest initial entry training installation and it anchors a deep, steady housing market. McEntire Joint National Guard Base sits southeast of the city. Columbia, Blythewood, Elgin, Lexington, Chapin, and Cayce.

Charleston and the Lowcountry

Joint Base Charleston was officially renamed Joint Base Lindsey Graham in August 2026. Between the joint base and Coast Guard Sector Charleston, this is the state’s most competitive market and the one where insurance decides deals. North Charleston, Goose Creek, Summerville, Hanahan, Moncks Corner, and Mount Pleasant.

Sumter

Shaw Air Force Base anchors an affordable market with constant PCS turnover and short commutes. Sumter, Dalzell, and Wedgefield.

Beaufort and the sea islands

Marine Corps Air Station Beaufort and Marine Corps Recruit Depot Parris Island. Beaufort, Port Royal, Lady’s Island, and Burton. Wind and flood exposure is the deciding variable on nearly every file here.

Myrtle Beach and the Grand Strand

No major active installation, but a very large retired veteran population drawn by the tax treatment and the coast. Myrtle Beach, Conway, Murrells Inlet, and Little River.

Greenville and the Upstate

Inland, no coastal insurance problem, and the fastest-growing non-coastal market in the state. Greenville, Greer, Simpsonville, Anderson, and Spartanburg.

1. Pull your Certificate of Eligibility

Electronic, usually seconds. If yours needs manual review because of a discharge upgrade, a Guard or Reserve record, or a prior VA loan never restored, we file the paperwork and follow it.

2. Calculate entitlement, not a loan limit

Full entitlement means no VA cap. If you have a VA loan open elsewhere, we compute remaining entitlement against the $832,750 baseline and give you the exact zero-down ceiling.

3. Settle the exemption and the assessment ratio

Total and permanent rating means the property tax line may be zero. If not, the question becomes 4 percent or 6 percent. Those two inputs together can swing the payment by hundreds of dollars, so we resolve them before we quote.

4. Quote insurance on the address if you are near the coast

Wind and hail, flood determination, and the possibility of a separate windstorm policy. Week one, not week four.

5. Choose your closing attorney

South Carolina requires one and the law says the choice is yours. We coordinate early so the title work does not become the schedule.

6. Underwrite it, manually if the file needs it

A refer from automated underwriting is not a denial. VA allows a manual underwrite and we do them.

7. Close and handle the funding fee

Financed by default, waived entirely with a service-connected rating, and refundable if your rating came through after a prior VA closing.

Credit score

No minimum. VA does not publish one. We have closed VA loans in the 500s. If a lender quoted you 620, that was their rule.

Down payment

Zero with full entitlement. Not a low down payment. Zero.

Mortgage insurance

None, ever. The single biggest month-to-month advantage VA holds over FHA and conventional.

Debt-to-income ratio

No hard cap. VA uses residual income instead. We have closed well past 50 percent DTI when the residual math supported it.

Bankruptcy, foreclosure, short sale

Chapter 7 at two years. Chapter 13 can work mid-plan with trustee approval and twelve months of on-time payments. Foreclosure and short sale at two years, shorter with documented extenuating circumstances.

Property types

Single family, VA-approved condo, townhome, PUD, manufactured on a permanent foundation, and two to four units if you occupy one.

Told No by Another South Carolina Lender?

Send me the denial. I will tell you within a day whether it was a real VA rule, a misread of the exemption or the assessment ratio, or that lender’s own overlay.

25+ years, 3,100+ closed loans, no lender overlays.

PCS to Fort Jackson, Shaw, Beaufort, or the Charleston joint base

Orders in hand, report date set, and you may not have arrived. VA allows closing before you physically occupy, with a reasonable window to move in. We build the timeline around the report date.

You qualified for the exemption mid-year and were told to wait

Since the 2024 change, the exemption can apply for the full year in which the disability occurs, and up to two prior paid tax years can be claimed back. If someone told you to wait until next January, that guidance is out of date.

Surviving spouse, and the veteran never filed

The 2024 change removed that barrier. A qualifying unremarried surviving spouse can claim the exemption regardless of whether the veteran ever applied for it.

Your escrow was built on the seller’s tax bill

The purchase is an assessable transfer of interest and the classification may change from 6 percent to 4 percent or the reverse. Either way the prior owner’s number is not yours.

Charleston or Beaufort file where insurance is the long pole

Wind, hail, and flood on a coastal address can add three separate premiums. Quoting it in week one is the difference between closing on time and losing the contract.

You want an investment property

VA occupancy rules require you to live in the home. For a pure rental we use DSCR loans that qualify on the property’s rent instead of your income. Note the 6 percent assessment ratio applies to non-owner-occupied property and belongs in the cash flow model.

Credit score in the 500s, zero down

Declined at another lender’s 620 overlay. VA publishes no score minimum. The file went manual, residual income cleared with room, and it closed. Full write-up on VA loans with a 541 credit score.

Lender escrowed full taxes on an exempt veteran

Total and permanent rating, full South Carolina exemption on the dwelling and five acres, and the prior lender escrowed the whole bill anyway. Corrected, the payment dropped, and the file cleared debt-to-income with room.

File stuck at the 6 percent assessment ratio

The legal residence application had never been filed on the property. Roughly fifty percent more property tax on the same house, and it was sitting in the escrow calculation. Caught before closing.

Chapter 13 still in repayment

Twelve months of on-time trustee payments plus written trustee approval. VA allows it. Most lenders will not touch it.

Coastal file the first lender could not insure in time

A Lowcountry purchase where wind and hail coverage was not shopped until underwriting. Started early on our side, placed through the standard market, and closed on schedule.

Seller paid the lease break so the buyer could close now

An allowable VA concession. In the Charleston rental market that is real money. Details on the VA seller concessions page.

Down payment

VA: zero with full entitlement. Conventional: 3 to 5 percent minimum. FHA: 3.5 percent.

Mortgage insurance

VA: none, ever. Conventional: PMI until you reach 20 percent equity. FHA: upfront premium plus a monthly premium that usually runs the life of the loan.

Credit score floor

VA: no published minimum. Conventional: generally 620, with real pricing pain under 700. FHA: 580 for 3.5 percent down.

One-time fee

VA: the funding fee, financed, waived entirely with a service-connected rating. Conventional: none, but PMI monthly instead. FHA: 1.75 percent upfront plus the monthly.

Seller-paid costs

VA allows unlimited seller-paid closing costs plus up to 4 percent in concessions, and that bucket can pay off your debt or prepay your payments. Conventional caps at 3 to 9 percent by down payment with no debt-payoff allowance. In an attorney-closing state with coastal insurance, the uncapped bucket is worth more here than it is in most places.

Property tax treatment

The disabled veteran exemption and the 4 percent legal residence ratio apply regardless of loan type. They are state benefits, not VA benefits, but they change the payment on any loan.

Refinancing later

VA: the IRRRL streamline needs no appraisal and no income documentation in most cases. Conventional and FHA require a full refinance, and in South Carolina that means another attorney closing.

Myth: The South Carolina veteran exemption is capped at a dollar amount

It is not. A qualifying veteran gets a complete exemption from ad valorem property tax on the dwelling and up to five acres, plus two vehicles. Not a credit and not a capped assessed value.

Myth: I make too much money to qualify

There is no income test on the South Carolina disabled veteran exemption. Eligibility turns on disability, ownership, and residency.

Myth: I have to wait until next year to claim it

Not since 2024. The exemption can apply for the full year in which the veteran becomes permanently and totally disabled, and up to two prior paid tax years can be claimed back.

Myth: My spouse lost the benefit because my father never filed

That barrier was removed. A qualifying unremarried surviving spouse can claim the exemption regardless of whether the veteran ever applied for it.

Myth: The 4 percent rate is automatic when you buy

It is not. You have to file the legal residence application with the county. Until you do, the property sits at 6 percent, which is roughly fifty percent more tax on the same house.

Myth: Charleston is a high-cost county for VA loans

Not for conforming purposes. Every South Carolina county sits at the 2026 baseline of $832,750. The higher figure people quote for the Charleston tri-county is an FHA limit, a different program.

Myth: I can use any title company I want for closing

South Carolina requires a licensed attorney to supervise the closing. You do get to choose which attorney, and that right is protected by statute.

Myth: You can only use your VA loan once

Entitlement is reusable and restorable. Plenty of South Carolina buyers we work with are on their second or third VA loan.

Is there a minimum credit score for a VA loan in South Carolina?

No. VA publishes no minimum credit score. Lenders add their own, usually 620. The JD.Mortgage Team does not add one. If automated underwriting refers your file, we run a manual underwrite using the compensating factors VA recognizes: residual income, housing payment history, reserves, and documented explanations for past credit events.

Do disabled veterans pay property tax in South Carolina?

Not on the qualifying residence. A veteran certified as totally and permanently disabled from a service-connected cause receives a full exemption from ad valorem property tax on the dwelling and up to five acres, plus up to two private passenger vehicles. It is a complete waiver, not a reduction or a credit.

Is there an income limit on the South Carolina disabled veteran exemption?

No. The exemption under S.C. Code 12-37-220(B)(1) turns on disability, ownership, and residency. There is no household income cap.

Can I claim the South Carolina exemption for a prior year?

Yes, in most cases. A 2024 change lets the exemption apply for the full year in which the veteran becomes permanently and totally disabled, rather than starting the following tax year, and allows a claim on up to the two prior paid tax years. A lot of veterans are owed a refund and do not know it.

Can a surviving spouse get the South Carolina veteran exemption?

Yes. A qualifying surviving spouse can claim it as long as they remain unmarried, live in the dwelling, and own it in fee or for life. Since 2024 the spouse can claim it regardless of whether the veteran ever applied for it before death.

How do I apply for the South Carolina veteran property tax exemption?

Through the South Carolina Department of Revenue, either on MyDORWAY or by mailing Form PT-401-I. Certification of the disability comes from the county veterans service officer or from VA. Processing commonly takes several weeks, so file well ahead of a closing if you are counting on the exemption in your escrow.

What is the difference between the 4 percent and 6 percent assessment ratio?

Owner-occupied legal residence property is assessed at 4 percent of fair market value. Everything else, including second homes and rentals, is assessed at 6 percent. The classification is not automatic when you buy. You file a legal residence application with the county. On a $400,000 home the difference is roughly $1,960 a year versus roughly $2,940.

Does renting my house affect the 4 percent rate in South Carolina?

It can. The legal residence classification generally requires that the property not be rented more than 72 days in a tax year, with limited exceptions. Short-term rental income on a primary residence is a common way people lose the 4 percent ratio without realizing it.

What is the VA loan limit in South Carolina?

There is no VA loan limit if you have full entitlement. For conforming purposes every South Carolina county sits at the 2026 national baseline of $832,750 for a one-unit property, including Charleston, Berkeley, Dorchester, Beaufort, and Horry. That figure only matters when you already have a VA loan open somewhere else.

Does South Carolina tax military retirement pay?

Partly. Military retirees age 65 and older may deduct up to $30,000 a year of military retirement income. Retirees under 65 with earned income may deduct up to $17,500. Social Security is fully exempt from South Carolina income tax.

What is the South Carolina income tax rate for 2026?

South Carolina moved to a two-bracket structure for the 2026 tax year under H.4216: 1.99 percent on income under $30,000 and 5.21 percent on income of $30,000 and above, down from a prior top rate above 6 percent. The law also created a new state standard deduction and a trigger for further rate reductions if revenue growth allows.

Do I need an attorney to close on a house in South Carolina?

Yes. South Carolina requires a licensed attorney to conduct or supervise a residential real estate closing, including refinances, under State v. Buyers Service Co. and later cases. You choose the attorney, and that right is protected by S.C. Code 37-10-102. Budget roughly $1,000 to $2,000, and remember a seller can pay it with no VA percentage cap.

Is homeowners insurance a problem on the South Carolina coast?

It can be the deciding factor. The South Carolina Wind and Hail Underwriting Association exists as a market of last resort for the designated coastal territory. Coastal buyers often end up with a homeowners policy, a separate wind and hail policy, and flood coverage. Statewide homeowners premium volume nearly doubled between 2016 and 2024, so an old quote is not a quote.

Do I need flood insurance on a South Carolina VA loan?

If the property sits in a FEMA Special Flood Hazard Area, yes. Federal law requires it on a federally backed mortgage, and if you do not place a policy the lender has to force-place one and escrow the cost. That raises the payment used in your debt-to-income calculation, which is why we run the flood determination in week one on anything near tidal water.

Is South Carolina a judicial foreclosure state?

Yes. Foreclosure runs through Circuit Court, typically before a Master-in-Equity. The sale is advertised once a week for three weeks, and the post-sale bidding period runs twenty days if the lender waives a deficiency or thirty days if it seeks one. Deficiency judgments are permitted unless waived.

Can a seller pay off my debt at closing on a South Carolina VA loan?

Yes. VA allows a seller to pay off your credit cards, auto loan, or other debt as part of the 4 percent concession allowance, stacked on top of unlimited seller-paid closing costs. Retiring a high monthly payment lowers your debt-to-income ratio and can turn a denial into an approval on the same contract.

Do I pay the VA funding fee in South Carolina?

The funding fee is federal and identical in every state. It is waived entirely if you receive VA disability compensation or hold a service-connected disability rating. Otherwise it is financed into the loan rather than paid in cash. If your rating was granted after you closed a prior VA loan, you may be owed a refund on a fee you already paid.

Get a Real South Carolina VA Preapproval

Built on the actual exemption status, the actual assessment ratio, and a real coastal insurance quote. Not a national average and not a guess.

Lending in 49 states. VA, Non-QM, and manual underwriting.