South Carolina HELOC Rates & Lenders Guide (2026)

South Carolina has been one of the hottest housing markets in the Southeast, and homeowners who bought even a few years ago are sitting on substantial equity gains. Charleston, Greenville, and the Myrtle Beach corridor have all seen double-digit appreciation, while Columbia and smaller markets have posted solid gains too. If you're a SC homeowner thinking about tapping that equity, here's what you need to know about HELOCs in 2026.

South Carolina Housing Market Overview

South Carolina continues to attract relocators from the Northeast and Midwest, drawn by lower taxes, warmer weather, and relative affordability compared to Florida's increasingly expensive coastal markets.

Key 2026 stats:

• Median [home value](/blog/appraisal-process-explained) (statewide): ~$285,000
• Median home value in Charleston metro: ~$410,000
• Median home value in Greenville-Spartanburg: ~$295,000
• Median home value in Columbia: ~$240,000
• Median home value in Myrtle Beach area: ~$310,000
• Median home value in Hilton Head/Beaufort: ~$450,000
• Year-over-year appreciation: ~5.5%
• Homeownership rate: ~70%, above the national average

The state's strong appreciation—particularly in Charleston (up 50%+ over five years) and Greenville (up 40%+)—means many homeowners have significantly more equity than they realize. Even those who bought with just 10% down in 2021 likely have 30–40% equity today.

Current HELOC Rates in South Carolina

South Carolina HELOC rates track national averages, with some competitive pressure from regional banks and credit unions:

Rates in South Carolina tend to be slightly higher than Northeast markets, reflecting less credit union competition and a higher proportion of borrowers financing through national banks. That said, the gap is small—usually 0.25–0.50%.

Variable rates are pegged to prime (~8.50%). Some South Carolina lenders offer intro rates or fixed-rate conversion features.

Lender Landscape in South Carolina

South Carolina has a growing mix of community banks, credit unions, and national lenders. The state's rapid population growth has attracted new lending competition.

Top Local & Regional Lenders

South Carolina Federal Credit Union (SC Federal) The state's largest credit union, based in North Charleston. Competitive HELOC rates with low or no closing costs. Membership is open to anyone who lives, works, or worships in several SC counties.

AllSouth Federal Credit Union Columbia-based credit union serving the Midlands. Known for straightforward HELOC products and competitive pricing. Good member service.

SRP Federal Credit Union Serves the CSRA (Central Savannah River Area) and surrounding SC communities. Competitive rates and flexible terms.

South State Bank Major South Carolina-based bank with statewide presence. Strong HELOC products with local underwriting. Particularly experienced with Charleston and coastal properties, including flood zone considerations.

CresCom Bank (now part of Atlantic Capital) Charleston-area bank with deep knowledge of Lowcountry real estate. Useful for properties with unique characteristics—historic homes, marsh-front lots, island properties.

Greenville Federal Credit Union Serves the Upstate region. Competitive HELOC rates for the Greenville-Spartanburg market.

First Reliance Bank Florence-based bank covering the Pee Dee region and beyond. Good option for markets outside the big three metros.

National Lenders Worth Considering

• Wells Fargo – Large SC presence, competitive for high-balance HELOCs
• Bank of America – Preferred Rewards rate discounts
• Truist – Formed from BB&T and SunTrust, both with deep SC roots
• TD Bank – Growing Southeast presence
• Figure – Fast online HELOC with fixed rates
• Third Federal – Consistently low national HELOC rates

Qualification Requirements

Credit Score: 620+ minimum, 740+ for the best rates. SC credit unions may offer some flexibility for long-term members.

Combined Loan-to-Value (CLTV): 80% is standard, with some lenders offering 85–90%. Charleston's higher values support larger HELOC lines. A $410,000 Charleston home with a $250,000 mortgage at 80% CLTV = $78,000 available.

[Debt-to-Income Ratio](/blog/dti-ratio-explained): 43% standard, up to 50% at some lenders. South Carolina's moderate cost of living helps most borrowers qualify. However, if you're in a coastal area with high homeowner's insurance and [flood insurance](/blog/hurricane-insurance-guide), those premiums count toward your DTI.

Employment & Income: Standard verification. SC's economy is diverse: manufacturing (BMW in Spartanburg, Boeing in Charleston, Michelin in Greenville), healthcare, military (Fort Jackson, MCAS Beaufort, Joint Base Charleston), tourism, and a growing tech sector.

Property Considerations: South Carolina's housing stock ranges from antebellum Charleston singles to brand-new Myrtle Beach condos. Special considerations:

• Flood zone properties require flood insurance (common in Charleston, Beaufort, and coastal areas)
• Historic district properties (Charleston, Columbia, Beaufort) may need specialized appraisals
• Manufactured homes on permanent foundations generally qualify at most credit unions
• Condos in resort communities may have lender restrictions

South Carolina-Specific Regulations

No Mortgage Recording Tax (State Level): South Carolina does charge recording fees and a modest mortgage tax of $0.30 per $100 of debt, plus county recording fees. On a $100,000 HELOC, expect about $300 in state mortgage tax plus $25–$50 in recording fees. This is much lower than states like Pennsylvania or Florida.

Deed of Trust State: South Carolina uses mortgages (not deeds of trust) and requires judicial foreclosure. The foreclosure process typically takes 6–12 months, providing significant time for borrowers to cure defaults. The court oversees the process, and there's a statutory upset period after the sale.

No Deficiency Judgment Restrictions: After a foreclosure sale, if the property sells for less than the outstanding debt, the lender can pursue a deficiency judgment for the difference. This applies to HELOC debt and makes defaulting riskier than in non-recourse states.

Attorney-Closing State: South Carolina requires an attorney to conduct real estate closings, including HELOC closings. This adds $300–$750 to closing costs but provides legal review of your loan documents. The attorney works for the lender but has ethical obligations that provide some borrower protection.

Right of Rescission: Standard federal 3-day right applies.

South Carolina Consumer Protection Code: Provides additional protections against unfair lending practices, including requirements for clear disclosure and limits on certain fees.

Tax Implications

Federal Tax Deduction: [HELOC interest deductible](/blog/heloc-tax-deduction-rules-2026) only for home improvement use, subject to $750,000 combined mortgage limit.

South Carolina [State Income Tax](/blog/states-with-no-income-tax-investing): South Carolina has a graduated income tax with rates from 0% to 6.4% (the top rate has been gradually decreasing and is scheduled to drop further). The state allows itemized deductions and generally follows federal treatment. Deductible HELOC interest reduces your state tax bill.

However, South Carolina has a generous standard deduction and also offers a significant deduction for retirement income, meaning many retirees (a large SC demographic) don't itemize. If you're retired and taking the standard deduction, HELOC interest won't help your state taxes.

No Capital Gains Tax Advantage: South Carolina taxes capital gains as ordinary income. This is relevant if you're considering whether to sell your home (potentially tax-free up to $250K/$500K under federal rules) versus borrowing against it.

Property Tax Context

South Carolina has notably low property taxes, one of the state's biggest attractions:

• Effective property tax rate: ~0.56% (among the lowest in the nation)
• Median annual property tax bill: ~$1,600
• Owner-occupied assessment ratio: 4% of fair market value (compared to 6% for non-owner-occupied)
• Charleston County effective rate: ~0.5%
• Greenville County effective rate: ~0.6%

South Carolina's low property taxes are a significant HELOC advantage. Low housing costs mean more room in your DTI ratio, making it easier to qualify for larger lines. The 4% owner-occupied assessment ratio means your tax bill stays low even as home values rise.

The state also offers a [homestead exemption](/blog/homestead-exemption-guide) for homeowners 65+, disabled, or legally blind: the first $50,000 of fair market value is exempt from property taxes (saving roughly $500–$1,000/year depending on the municipality).

When Does a South Carolina HELOC Make Sense?

• Coastal home hardening: Hurricane and flood preparation—impact windows, roof upgrades, elevated HVAC systems—is a practical use that can also lower insurance premiums
• Charleston historic home restoration: Maintaining or renovating a historic Charleston single or double is expensive. HELOCs provide flexible funding for phased [renovation](/blog/bathroom-renovation-cost-guide) projects that must meet Board of Architectural Review standards
• Pool and outdoor living additions: SC's climate makes outdoor improvements high-ROI. A $50,000 pool project in Greenville or Columbia can add significant lifestyle and resale value
• Investment property funding: SC's tourism-driven rental markets (Myrtle Beach, Charleston, Hilton Head) attract investors. Some use primary residence HELOCs for down payments on short-term rental properties
• New construction upgrades: Many SC homeowners in new developments use HELOCs to fund landscaping, fencing, and upgrades that weren't included in the build

Frequently Asked Questions

How long does it take to close a HELOC in South Carolina?

Typically 3–6 weeks. The attorney-closing requirement adds a few days but provides legal oversight. Appraisals in hot markets like Charleston can be backed up. Online lenders like Figure can be faster but may not handle SC's attorney-closing requirement as smoothly as local lenders.

Does my flood insurance affect HELOC qualification?

Yes, significantly. In Charleston and coastal areas, flood insurance premiums can be $2,000–$8,000+ annually under FEMA's Risk Rating 2.0. This counts toward your monthly housing costs and DTI. A $500/month flood insurance premium effectively reduces your HELOC borrowing capacity by $50,000–$75,000. Shop flood insurance aggressively—private flood carriers often beat NFIP rates in South Carolina.

Can I get a HELOC on a vacation home in South Carolina?

Yes, many lenders offer HELOCs on second homes/vacation properties. Expect slightly higher rates (0.25–0.50% more) and lower CLTV limits (typically 70–75%). Lenders may be more cautious with properties in heavy tourism areas (Myrtle Beach, Hilton Head) due to market volatility concerns.

What if my home value has increased a lot since I bought it?

That's exactly when a HELOC becomes powerful. If you bought a Greenville home for $220,000 in 2020 and it's now worth $310,000, you've gained $90,000 in equity from appreciation alone plus whatever you've paid down on your mortgage. The lender will order an appraisal to confirm current value. Some lenders accept automated valuations for smaller lines, which speeds the process.

Are there any HELOC assistance programs specific to South Carolina?

South Carolina doesn't have state-specific HELOC programs, but SC Housing offers various home repair and rehabilitation programs for income-qualifying homeowners. The Palmetto Home Advantage program and SC Housing's rehab programs can sometimes complement or substitute for HELOC borrowing for specific improvement projects.

The Bottom Line

South Carolina is a HELOC-friendly state: rapidly appreciating home values, low property taxes that keep DTI manageable, modest closing costs (no major recording tax), and a judicial foreclosure process that protects borrowers. The main risks are coastal insurance costs (which can blow up your DTI) and the possibility that SC's hot market could cool. Start with SC Federal Credit Union and South State Bank for competitive local quotes, then compare against national lenders like Figure, Third Federal, and your existing bank. With rates in the 7.50–8.75% range for top-tier borrowers, a South Carolina HELOC is a cost-effective way to put your equity to work—especially for home improvements that can further boost your property's value in this appreciating market.

Related Articles

• Property Taxes Explained: How They Work and How to Reduce Them
• South Carolina HELOC Guide
• [Best Investment Property Lenders in 2026 - Rental & [Multifamily Loans](/blog/best-investment-property-lenders-2026)](/blog/best-investment-property-lenders-2026)