FHA Loans in Charleston SC: 2026 Limits and Requirements
An FHA loan in Charleston SC lets eligible buyers purchase with 3.5% down and a credit score of 580 or higher. In 2026, the FHA limit for a one-unit home is $690,000 in Charleston, Berkeley, and Dorchester counties. That covers the region’s $425,000 September median price, with mortgage insurance as the trade-off.
FHA loans are insured by the Federal Housing Administration, part of HUD. Because the government backs part of the risk, lenders can accept smaller down payments and more flexible credit. Here’s how FHA works across the Charleston area in 2026.
Key Takeaways
- 2026 FHA limit: $690,000 for one unit in Charleston, Berkeley, and Dorchester counties, with higher limits for two to four units.
- Down payment: 3.5% with a 580+ credit score, or 10% with a score from 500 to 579. Lenders may set higher minimums.
- Mortgage insurance: 1.75% upfront plus an annual premium, often about 0.55% a year for 30-year loans with less than 5% down.
- Condos need FHA approval, which matters in downtown Charleston and Mount Pleasant.
- FHA averaged 6.91% on Mortgage News Daily’s index for November 2, 2026, versus 7.27% for the 30-year conventional index.
What Are the 2026 FHA Loan Limits in Charleston?
HUD sets FHA limits by county. Charleston, Berkeley, and Dorchester counties share the same 2026 limits, according to HUD’s FHA mortgage limits lookup:
| Property type | 2026 FHA limit |
|---|---|
| One unit | $690,000 |
| Two units | $883,300 |
| Three units | $1,067,750 |
| Four units | $1,326,950 |
The two-to-four-unit limits apply when you live in one of the units. The national FHA floor for 2026 is $541,287, so the Lowcountry’s limit is well above the minimum.
Does FHA Work With Charleston Home Prices?
It depends on where you shop. The Charleston Trident Association of REALTORS® reported a regional median sale price of $425,000 for September 2026, up 0.7% from a year earlier. Closings rose 9.5%, homes averaged 55 days on market, and the region had 3.6 months of supply.
Inside Charleston County, the single-family median was $715,000, above the FHA limit. The county’s townhouse and condo median was $457,450. That’s why many FHA buyers look at townhomes or at single-family homes in Berkeley and Dorchester counties. Our guide to where to buy near Charleston compares prices by area, and our fall housing market report has more data.
What Are FHA Loan Requirements in South Carolina?
FHA rules are national, so South Carolina buyers follow the same core guidelines:
- Credit score: 580 or higher for 3.5% down. Scores from 500 to 579 may qualify with 10% down.
- Debt-to-income ratio: Often up to about 43%, and sometimes higher with strong compensating factors.
- Primary residence: You must live in the home, usually within 60 days of closing.
- Steady income: Typically two years of employment history, with explanations for gaps.
- Property standards: An FHA appraisal checks safety, security, and soundness.
- Gift funds: Down payment gifts from family are allowed with proper documentation.
How Much Is FHA Mortgage Insurance?
FHA loans have two mortgage insurance premiums (MIP):
- Upfront MIP: 1.75% of the base loan, usually added to the loan amount.
- Annual MIP: About 0.55% a year for most 30-year loans with less than 5% down, paid monthly. It’s 0.50% with 5% to 10% down.
With less than 10% down, annual MIP generally lasts for the life of the loan. With 10% or more down, it ends after 11 years. Many owners later refinance to a conventional loan once they build enough equity.
What Would an FHA Payment Look Like in Charleston?
Here’s an illustration for a $425,000 home with 3.5% down at an illustrative 6.91% rate:
| Item | Amount |
|---|---|
| Down payment (3.5%) | $14,875 |
| Base loan | $410,125 |
| Upfront MIP (1.75%, financed) | $7,177 |
| Total loan | $417,302 |
| Principal and interest | About $2,751/month |
| Annual MIP (0.55%) | About $188/month |
Property taxes, homeowners insurance, flood insurance, and HOA dues would be added. These figures are not quotes.
Can I Use an FHA Loan on a Charleston Condo?
Yes, if the condo project is FHA-approved, or if the unit qualifies for a single-unit approval. You can search approved projects on HUD’s condominium lookup. Ask early, because approval status can change and some downtown and beach-area projects aren’t approved.
What About Flood Zones?
If the home is in a FEMA special flood hazard area, flood insurance is required on an FHA loan. Much of the Lowcountry sits in or near flood zones, so get insurance quotes before you make an offer. Our Charleston flood zone guide explains how to check a property’s zone.
FHA, VA or Conventional?
Eligible veterans and service members should also compare VA loans, which often require no down payment and no monthly mortgage insurance. See our VA loan guide for Charleston. Buyers with higher credit scores and 5% or more down may find a conventional loan costs less over time. Down payment assistance may be available through several of our lender partners, depending on the program and your eligibility.
Frequently Asked Questions
What is the FHA loan limit in Charleston County for 2026?
The 2026 FHA limit for a one-unit home in Charleston County is $690,000. Berkeley and Dorchester counties have the same limit. Limits are higher for two to four units.
What credit score do I need for an FHA loan in South Carolina?
HUD allows 3.5% down with a credit score of 580 or higher, and 10% down with a score from 500 to 579. Many lenders set their own minimums above those levels.
Can I buy a townhome or condo in Charleston with an FHA loan?
Townhomes held as fee simple usually qualify like single-family homes. Condos need FHA project approval or a single-unit approval. Check HUD’s condo lookup before you make an offer.
Does FHA mortgage insurance ever go away?
With less than 10% down, annual MIP generally lasts for the life of the loan. With 10% or more down, it ends after 11 years. Refinancing to a conventional loan can remove it once you have enough equity.
Can I use an FHA loan for a duplex in Charleston?
Yes, if you live in one of the units. The 2026 FHA limit for a two-unit property in the Charleston area is $883,300.
See If FHA Fits Your Lowcountry Purchase
Call Coastal Funding Corporation at (843) 212-6200 or visit www.charlestonmtg.com. Our James Island team compares FHA, conventional, and VA options from multiple lenders so you can see your real payment before you shop.
About Coastal Funding Corporation in Charleston
Coastal Funding Corporation (NMLS 103035) is a mortgage broker helping Charleston and Lowcountry buyers compare loan options from multiple wholesale lenders, with a local office on James Island. We help with purchases and refinances using conventional, FHA, VA, USDA and jumbo loans, plus DSCR loans for investment properties. This article was written by our team and reviewed for accuracy as of the date shown.
Sources: HUD FHA mortgage limits for calendar year 2026 and HUD Single Family Housing Policy Handbook 4000.1; HUD condominium approval lookup; Charleston Trident Association of REALTORS® September 2026 market reports (ShowingTime); Mortgage News Daily, November 2, 2026. Example payments are illustrative and are not quotes.
Coastal Funding Corporation | NMLS 103035 | (843) 212-6200 | www.charlestonmtg.com. Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, and property eligibility. Rates, terms, and programs are subject to change without notice. Market and rate figures cited are third-party data as of the dates shown and are not quotes or offers from Coastal Funding Corporation. This article is not tax advice. Verify our license at NMLS Consumer Access.