The recent trend in housing prices in Columbia shows a gradual increase. According to Zillow, the average home value is $231,363, which is a 1.4% increase over the past year (as of May 31, 2026). Compared to other major cities in the Southeast, the increase is not significant, which is advantageous for first-time homebuyers, but it also means that it may be a challenging market for those looking to invest for short-term gains.

Property taxes are a definite strength in this area. South Carolina's effective property tax rate averages around 0.51%, which is lower than the national average. However, this low rate typically applies to owner-occupied homes, and if purchased for investment purposes, the tax rate may differ, so it is advisable to check with the county tax authority.

The loan conditions are summarized as follows. FHA loans require a credit score of 580 or higher with a 3.5% down payment, while those with scores between 500 and 579 need a 10% down payment. Conventional loans can start at 3% for first-time homebuyers, but putting down less than 20% may incur monthly PMI, which can be a burden. For those with a credit score above 780, the 30-year fixed rate is 6.59%, 6.66% for the 760s, 6.75% for the 740s, and 6.91% for the 700s (as of early July 2026).

Pre-approval can be a useful negotiation tool, but it also requires considerable documentation. Preparing the last two years of tax returns, two months of pay stubs, and bank statements will allow the lender to determine the loan amount based on DTI and credit score. Generally, DTI should not exceed 43%.

Closing costs range from 2% to 5% of the loan amount, so for an average loan of around $200,000 in Columbia, you might need between $4,000 and $10,000 in addition. While this amount is relatively small compared to other areas, it can still represent a significant portion of your budget. When comparing fixed rates and ARMs, this can be advantageous in some respects but burdensome in others, so it's a matter of personal planning. If you plan to stay long-term, a fixed rate is stable, while if you plan to move within a few years, the initial low rate of an ARM may be worth considering.

After the contract, a home inspection and escrow process will follow. If issues are found during the inspection, they can serve as grounds for price renegotiation, but focusing on overly minor issues can derail negotiations, so balance is necessary.

If you need down payment assistance, it's worth looking into the South Carolina Housing Authority's homebuyer program. This program combines a 30-year fixed-rate loan for first-time homebuyers with a 0% interest second loan to assist with down payments and closing costs, with the condition that if sold within three years, some repayment is required. The Palmetto Home Advantage program offers up to 4% assistance on the loan amount. Public service workers like teachers and firefighters can also receive $10,000 in forgiveness through the newly launched Palmetto Heroes program in 2026.

When considering school districts preferred by Korean families in Columbia, refer to GreatSchools ratings, but be aware that boundaries change frequently, so it's best to verify the assigned school for the specific address before purchasing.

During the home inspection, it is particularly important to check the foundation, plumbing, and termite damage, considering Columbia's unique humid climate. The escrow company manages funds and documents between the buyer and seller and settles taxes and insurance on the closing date.

If you are torn between renting and buying, this area has a relatively low ratio of purchase prices to rent, making buying more advantageous for families planning to stay long-term. However, if there is a possibility of job changes or moving, it's important to consider that recovering closing costs within a few years may be difficult.

This information is not investment or legal advice, and it is recommended to consult with a professional before making any actual contracts.