Mortgage lender closing cost rankings in South Carolina (2025)

South Carolina uses a mortgage instrument rather than a deed of trust, making it a mortgage-state. Foreclosure is judicial, meaning lenders must file suit in circuit court to foreclose — a process that typically takes longer than non-judicial states. South Carolina is an attorney-closing state: a licensed SC attorney must conduct the closing, review title, and disburse funds, which adds a mandatory attorney fee to every transaction. Transfer taxes are structured as a deed recording fee assessed at $1.85 per $500 of purchase price, generally paid by the seller by convention, though this is negotiable. Title insurance rates are set under a file-and-use system regulated by the South Carolina Department of Insurance. Prepayment penalties on residential mortgages are restricted under state consumer protection statutes. The South Carolina Department of Consumer Affairs provides oversight of mortgage licensees and handles consumer complaints, offering an additional layer of borrower protection beyond federal agencies.

Conventional loans dominate South Carolina's purchase market, representing 58.8% of originations (37,932 loans) at a median rate of 6.625% and median costs of $5,206. FHA loans account for a significant 23.6% share (15,245 loans), reflecting the state's mix of first-time buyers and moderate-income borrowers, though their median costs of $10,517 run notably higher. VA loans make up 16.2% of volume (10,474 loans), a meaningful share driven by military installations including Fort Jackson, Shaw Air Force Base, and Marine Corps Recruit Depot Parris Island. USDA loans are a small but present 1.3% (867 loans), reflecting some rural eligibility in the state's inland counties.