Before a South Carolina reverse mortgage loan can begin, you sign a statement confirming the lender gave independent counseling details at the first inquiry. In fiscal year 2025, the federal HECM program insured 540 loans across South Carolina and is what most borrowers select. For recent borrowers in the state, the median home value came to $335,000 and the median initial principal limit was $146,688. That's the amount you can borrow at the start, before subtracting fees and paying off any existing mortgage.
Counseling rules in the South Carolina Reverse Mortgage Act
Before a lender can commit to a loan, you need to provide a written statement that you got a counseling disclosure at the first inquiry. What that statement says and how it looks is decided by the South Carolina State Housing Finance and Development Authority. The South Carolina Reverse Mortgage Act stops at a written statement: it does not require counseling or add any delay. Even so, the housing authority has to point you toward independent counselors who know reverse mortgages well. For unbiased consumer information about reverse mortgages and other options, you can turn to the South Carolina Department on Aging.
Could a reverse mortgage change state aid or time away from your house?
Getting loan payments won't reduce your chances of qualifying for state programs that look at your income and assets. South Carolina law counts reverse mortgage money as loan proceeds, not income. Your eligibility for medical assistance, property tax relief, low-income energy assistance and supplemental security income is what that rule protects.
If you leave your home for a while, state law protects you too. You can be gone for up to 60 days in a row without your reverse mortgage becoming due. You can be away for under 1 year too, if you secure the home first in a way that satisfies your lender. You can prepay the loan in full or in part at any time, penalty free, even if your plans change.
Complaint offices and lender licensing through the Consumer Finance Division
Licensing for South Carolina reverse mortgage lenders, plus other mortgage lenders and servicers, comes from the South Carolina Board of Financial Institutions Consumer Finance Division. When a dispute happens, contact the company first and try to work it out. When your mortgage didn't come from a bank, you can send a complaint to the Office of the Commissioner of Consumer Finance. You'll find them at Suite 306, 1205 Pendleton Street in Columbia, South Carolina, ZIP 29201. If your complaint involves a bank mortgage, federal rules send it to the Consumer Financial Protection Bureau instead.
There's another path if your lender defaults on scheduled loan payments (advances) and doesn't resolve the default. A default happens when a required promise in the loan contract is broken. When that occurs, you can complain to the South Carolina Department of Consumer Affairs, and the lender has to answer their questions.
The $50,000 South Carolina Homestead Exemption for owners over 65
Federal reverse mortgage rules say you have to keep up your property tax and homeowners insurance payments. You also need to live in the home as your main residence and maintain it well. Since missing property tax payments can put a HECM into default, state tax breaks are important. The South Carolina Homestead Exemption gives a full exemption from property tax for the first $50,000 of your legal residence's fair market value. You're eligible if you're older than 65, or if you're totally and permanently disabled, or if you're legally blind. You apply at the county auditor's office. There's no income limit or filing deadline from the state.
