HELOCs and home equity loans give South Carolina homeowners practical ways to tap their home’s value for large expenses or big projects. The right choice comes down to how you plan to borrow, repay, and manage changing rates. Comparing home equity loans and HELOC rates from Palmetto State lenders is the most direct way to put that equity to work at competitive cost.
MFP’s Takeaways
- South Carolina home values have grown from a lower base, giving long-term owners a meaningful equity cushion. ATTOM puts the statewide single-family median at $335,000 as of late 2025, with five-year appreciation gains topping 50% in many markets.
- South Carolina has one of the lowest effective property tax rates in the nation at 0.51%, meaning more of your home’s value translates into borrowable equity rather than carrying costs.
- Coastal properties in Charleston, Hilton Head, and Myrtle Beach carry premium values but also flood risk that affects insurance costs ; a factor lenders weigh when sizing home equity products in those areas.
Home Equity in South Carolina
South Carolina home values have grown steadily. ATTOM reports the statewide median single-family home price at $335,000 as of October 2025. The South Carolina REALTORS 2025 annual report puts the overall median at $339,975, up 1.5% for the year. Homes across the Upstate and Midlands have seen five-year appreciation above 50%, giving established homeowners a strong equity base to borrow against.
South Carolina adds approximately 90,000 new residents each year, growing at roughly twice the national rate. That sustained in-migration, driven by affordability, climate, and job growth in manufacturing, healthcare, and technology, keeps housing demand strong and supports the equity positions homeowners have built.
South Carolina’s effective property tax rate of 0.51% is among the lowest in the country, with owner-occupied homes assessed at just 4% of market value. That low carrying cost helps homeowners build equity faster relative to states with heavier property tax burdens.
Charleston
Charleston carries the state’s highest home values, with a median around $622,000 as of late 2025 per market data. The city’s historic character, waterfront appeal, and strong economy drive consistent demand. Long-term owners hold substantial equity, though coastal flood insurance costs are a real factor when calculating total ownership cost and net borrowable value.
Greenville and the Upstate
Greenville has emerged as one of the Southeast’s most dynamic mid-sized cities, anchored by BMW, Michelin, and a growing healthcare and tech sector. Home values in the Greenville-Anderson metro have risen more than 50% over five years in several submarkets. Homeowners who purchased before 2022 frequently hold six-figure equity gains, and the market remains active with consistent in-migration from higher-cost cities.
Columbia
Columbia, the state capital, is home to the University of South Carolina and Fort Jackson, the largest basic combat training center in the U.S. Both institutions anchor steady housing demand and support consistent appreciation for long-term homeowners in the metro area.
Myrtle Beach and Hilton Head
Myrtle Beach and Hilton Head attract retirees and vacation home buyers from across the country. Five-year appreciation gains in the Hilton Head metro have exceeded 70% in some areas. Homeowners in these coastal markets hold strong equity, but flood zone status and rising insurance premiums require careful attention when deciding how much to borrow against the property.
Home Equity Loans vs. HELOCs
Home Equity Loan
A home equity loan delivers a lump sum at a fixed interest rate, repaid in equal monthly installments over a set term. It works best when you have a defined expense and want a payment that stays consistent from the first month through the last.
HELOC
A home equity line of credit (HELOC) gives you a revolving credit line secured by your home. You draw from it as needed during the draw period and pay interest only on what you use. Rates are typically variable and tied to the prime rate. South Carolina credit unions commonly offer draw periods of 5 or 10 years followed by repayment periods of 10 to 15 years.
Side-by-Side Comparison
| Feature | Home Equity Loan | HELOC |
|---|---|---|
| Disbursement | Lump sum upfront | Draw as needed |
| Interest rate | Fixed | Variable |
| Monthly payment | Fixed | Based on balance drawn |
| Best for | Known, one-time expenses | Ongoing or phased needs |
| Typical term | 5 to 30 years | 5 or 10-year draw + repayment |
| Rate risk | None after closing | Rate can rise with prime rate |
South Carolina Home Equity Rates –
| 10 year fixed rates | Credit Score | ||
|---|---|---|---|
| 720 - 850 | 690 - 719 | 620 - 689 | |
| Nationally | 7.72% | 7.77% | 7.82% |
| South Carolina | 7.73% | 7.78% | 7.83% |
| Credit Unions | 7.38% | 7.43% | 7.48% |
| Online lenders | 7.58% | 7.63% | 7.68% |
| Banks | 7.73% | 7.78% | 7.83% |
| 5 year fixed | 7.67% | 7.72% | 7.77% |
| 10 year fixed | 7.72% | 7.77% | 7.82% |
| 15 year fixed | 7.57% | 7.62% | 7.67% |
| 20 year fixed | 8.05% | 8.10% | 8.15% |
Source: MFP’s Community Home Equity Loan Rates Survey members in the last 30 days.
South Carolina HELOC Rates –
| HELOC rates | Credit Score | ||
|---|---|---|---|
| 720 - 850 | 690 - 719 | 620 - 689 | |
| Nationally | 7.20% | 7.45% | 7.70% |
| South-carolina | 7.22% | 7.47% | 7.72% |
| Credit Unions | 6.97% | 7.22% | 7.47% |
| Online lenders | 7.07% | 7.32% | 7.57% |
| Banks | 7.22% | 7.47% | 7.72% |
Source: MFP’s Community HELOC Rates Survey members in the last 30 days.
Qualifying for a Home Equity Product in South Carolina
South Carolina lenders apply standard underwriting criteria for home equity products. Meeting these benchmarks puts you in the best position for approval and a competitive rate.
- Credit score of 620 or higher, with the best rates typically reserved for scores above 680.
- Combined loan-to-value (CLTV) ratio at or below 80% to 85% after the new loan, with some lenders allowing up to 90%.
- Verifiable income and a stable employment history.
- Debt-to-income (DTI) ratio below 43%.
- Minimum of 15% to 20% equity remaining in the home after closing.
If your property is in a FEMA-designated flood zone — common in Charleston, Beaufort, Horry, and Georgetown counties — flood insurance is required as a condition of most home equity products. Budget for this cost before applying, as it affects both affordability and the lender’s assessment of your net equity position.
South Carolina uses a non-judicial foreclosure process, meaning lenders can proceed with foreclosure outside the court system if a borrower defaults. This process moves faster than in judicial states, so keeping home equity loan and HELOC payments current is especially important once your home is used as collateral.
Smart Uses for Home Equity in South Carolina
South Carolina’s coastal and subtropical climate creates real demands on residential properties. Many homeowners use a home equity loan to fund hurricane shutters, roof reinforcements, HVAC replacements ahead of summer, or elevated foundation work in flood-prone areas. These investments protect property value and can reduce insurance premiums over time.
Debt consolidation is a strong fit across the state. Rolling high-interest credit card balances or personal loan debt into a fixed-rate home equity loan reduces total interest paid each month and simplifies multiple payments into one predictable obligation.
In Greenville and the Upstate, where in-migration continues to bring buyers from Charlotte, Atlanta, and beyond, some homeowners use a HELOC to fund renovations that position their property ahead of the market. Updated kitchens, primary suite improvements, and outdoor living additions can add measurable value in a market where competition among buyers remains active.
Risks to Understand Before You Borrow
Both a home equity loan and a HELOC use your home as collateral. South Carolina’s non-judicial foreclosure process means a lender can move quickly if payments are missed. Treating these loans with the same payment priority as your primary mortgage protects the equity you have built.
Coastal homeowners face an additional layer of risk: rising flood and wind insurance premiums can erode the net value of a property faster than appreciation gains. Before borrowing against a coastal property, confirm current insurance costs and factor them into your long-term affordability calculation alongside the loan payment.
Alternatives worth comparing:
Is a Home Equity Loan or HELOC Right for You?
Do you have a single defined project with a known cost, or do you need a flexible credit line to draw on in phases over time as expenses arrive?
If your property is in a coastal flood zone, have you factored insurance costs into your total monthly obligations, and does your equity position still support the amount you want to borrow after accounting for those carrying costs?
MFP Tip: South Carolina credit unions frequently offer competitive rates and low closing costs on home equity products. SC Federal Credit Union serves members statewide with both fixed-rate loans and HELOCs, AllSouth FCU has been voted Best Mortgage Bank in Columbia seven years running, and SC State Credit Union offers HELOCs with no annual fee and an introductory rate period for new members.
More resources for South Carolina homeowners: