How Much Down Payment Do You Really Need to Buy a Home in Myrtle Beach?

One of the biggest myths I hear from buyers considering a move to the Myrtle Beach area is that they need to have 20% saved before they can purchase a home. That simply is not true. There are multiple loan programs available to buyers in South Carolina right now that allow you to buy with as little as 0%, 3%, or 3.5% down — and understanding your options can make the difference between buying this year and waiting years longer than you need to.

This guide breaks down every major down payment option available to Myrtle Beach buyers in 2026, what each one costs you over time, and how to choose the right approach for your situation. Browse Myrtle Beach homes for sale while you work through your financing plan.

The 20% Down Myth — And Why It Persists

The 20% down payment standard comes from conventional loan requirements for avoiding private mortgage insurance (PMI). If you put less than 20% down on a conventional loan, you pay PMI — typically 0.5% to 1.5% of the loan amount per year — until you reach 20% equity. That adds to your monthly payment, but it does not mean you cannot or should not buy with less down.

In many cases, putting less down and investing the remaining cash elsewhere makes financial sense. The key is understanding the full cost of each option and making the right tradeoff for your goals.

Down Payment Options for Myrtle Beach Buyers in 2026

0% Down — VA Loans

VA loans are the gold standard for eligible veterans, active-duty military, and surviving spouses. They require no down payment, no PMI, and offer competitive interest rates. If you have VA eligibility and are buying in Myrtle Beach, this should almost always be your first choice. The only upfront cost is a VA funding fee (1.25%–3.3% of the loan, depending on usage and down payment), and even that can be rolled into the loan.

0% Down — USDA Loans

Some areas just outside the immediate Myrtle Beach metro — particularly in rural parts of Horry County and nearby Brunswick County in North Carolina — qualify for USDA Rural Development loans. These require no down payment for buyers who meet income limits. Check the USDA eligibility map early in your search if this option interests you.

3.5% Down — FHA Loans

FHA loans are the most popular low-down-payment option for buyers who do not have VA eligibility. With a credit score of 580 or higher, you can put down just 3.5%. On a $300,000 home, that is $10,500 upfront — far more attainable than the $60,000 a 20% down payment would require. The trade-off is mandatory mortgage insurance for the life of the loan in most cases, but for many buyers the ability to get into a home sooner outweighs that cost.

3%–5% Down — Conventional Loans

Conventional loans now allow as little as 3% down for first-time buyers through programs like Fannie Mae's HomeReady and Freddie Mac's Home Possible. With 5% down, you have access to the broadest range of conventional loan products. PMI applies until you reach 20% equity, but once you hit that threshold through payments or appreciation, PMI drops off automatically.

10%–20% Down — Stronger Offers, Lower Monthly Cost

If you have the savings, putting more down reduces your monthly payment, lowers your interest cost over the life of the loan, and in competitive multiple-offer situations can make your offer more attractive to sellers. In the current Myrtle Beach market — where homes are sitting longer and sellers have more negotiating pressure — the advantage of a larger down payment is less about winning bidding wars and more about your long-term financial picture.

SC Housing Down Payment Assistance

The South Carolina Housing Finance Authority offers down payment assistance programs for first-time and income-qualifying buyers. These programs can provide a forgivable second mortgage of up to 4% of the loan amount to cover down payment and closing costs. Combined with a competitive first mortgage rate, SC Housing programs can dramatically reduce what you need to bring to closing. Ask your lender about SC Housing eligibility early — not all lenders participate.

What About Closing Costs?

Down payment is only part of your upfront cost. Buyers in Myrtle Beach should also budget for closing costs, which typically run 2%–5% of the loan amount. On a $300,000 purchase, that is another $6,000–$15,000. In the current buyer-friendly Myrtle Beach market, asking the seller to contribute toward closing costs is common and frequently successful. Your agent can build seller concessions into the offer to reduce your out-of-pocket costs at closing significantly.

Which Down Payment Option Is Right for You?

The right answer depends on your credit profile, income, savings, and whether you qualify for VA or USDA benefits. Here is a quick guide:

• Veteran or active-duty military: Start with VA loan — 0% down, no PMI.
• Buying in a rural area, meet income limits: Explore USDA — 0% down.
• Credit score 580–699, limited savings: FHA at 3.5% down is likely your best fit.
• Credit score 700+, stable income: Compare conventional at 3%–10% down vs. FHA — conventional may be cheaper long-term.
• First-time buyer, moderate income: Check SC Housing programs before applying anywhere else.

Explore Myrtle Beach homes for sale and connect with a local lender to run the real numbers for your situation before you decide on a loan type.

Ready to Start Your Myrtle Beach Home Search?

Understanding your down payment options is the first step. The next is getting pre-approved so you know exactly what you can afford and can move quickly when the right property comes up. Reach out to Greg Harrelson to connect with a trusted local lender and start your home search with a clear plan.

About Greg Harrelson

Greg Harrelson has been one of the top-producing real estate agents in the Myrtle Beach area for over 20 years. With more than 15,000 homes and condos sold or partnered on throughout his career, Greg brings a level of local market expertise that few agents can match. His approach combines proven marketing strategies with exceptional follow-up and communication, ensuring that every buyer receives hands-on guidance from the first showing through closing day.

Greg's track record speaks for itself: over 1,100 five-star reviews on Zillow and more than 500 reviews on Google — a reflection of the consistent results and client-first service his team delivers. Whether you are buying a primary residence, vacation home, or investment property anywhere along the Grand Strand, Greg and his team have the experience and systems to get it done right. Interested in one of Myrtle Beach's most sought-after communities? Check out Carolina Forest homes for sale — a top choice for families and value-driven buyers.