EXHIBIT 5.1









                                            May 20, 2002




HomeGold Financial, Inc.
1021 Briargate Circle, Suite B
Columbia, SC 29210

     RE: Registration  Statement on Form S-8 of Common Stock Subject to HomeGold
     Financial,  Inc.  1995  Employee  and Officer  Stock Option Plan & HomeGold
     Financial, Inc. Employee Stock Purchase Plan

Ladies and Gentlemen:

         The opinion set forth  below is  rendered  with  respect to the 900,000
shares,  $.001 par value, of common stock of HomeGold  Financial,  Inc., a South
Carolina  corporation  (the  "Company"),   that  will  be  registered  with  the
Securities  and  Exchange  Commission  by  the   above-referenced   Registration
Statement on Form S-8 pursuant to the  Securities  Act of 1933,  as amended,  in
connection  with the HomeGold  Financial,  Inc.  1995 Employee and Officer Stock
Option Plan and the HomeGold  Financial,  Inc. Employee Stock Purchase Plan (the
"Plans").  We have examined the  Company's  Articles of  Incorporation,  and all
amendments thereto,  the Company's Bylaws, as amended,  and reviewed the records
of the Company's corporate proceedings. We have made such other investigation of
law and fact as we have  deemed  necessary  in order to enable us to render this
opinion.  With  respect to  matters of fact,  we have  relied  upon  information
provided to us by the Company without further investigation. With respect to all
examined  documents,  we have assumed the  genuineness  of all  signatures,  the
authenticity  of all documents  submitted to us as originals,  the conformity to
authentic  originals of all documents submitted to us as copies and the accuracy
and completeness of the information contained therein.

         Based on the  foregoing and subject to the  comments,  limitations  and
qualifications  set forth below, we are of the opinion that upon satisfaction of
any vesting and other  conditions  set forth in the Plans and in any  applicable
stock award agreement or letter, shares of the Company's common stock covered by
the  above-referenced  Registration  Statement  that are  issued  after the date
hereof  under and in  compliance  with the terms of the  Plans  will be  legally
issued, fully paid and non-assessable.

         The  foregoing  opinion  assumes  (i) that any  action  by the Board of
Directors of the Company,  or any committee thereof,  approving the terms of any
award under the Plans will be taken in  compliance  with the articles and bylaws
of the Company and applicable provisions of the South Carolina Code, as amended,
and (ii)  that any  committee  of the Board of  Directors  of the  Company  that



approves  the terms of any stock  award  will  have  been duly  established  and
authorized in accordance with the articles and bylaws of the Company,  the terms
of the Plans  and all  applicable  provisions  of the South  Carolina  Code,  as
amended.

          This  opinion is limited to matters  governed by the laws of the State
of South  Carolina  in force on the date of this  letter.  We express no opinion
with regard to any matter that may be (or which  purports to be) governed by the
laws of any other state or jurisdiction. In addition, we express no opinion with
respect to any matter  arising under or governed by the South  Carolina  Uniform
Securities  Act.  This  opinion is  rendered  as of the date of this  letter and
applies  only  to the  matters  specifically  covered  by this  opinion,  and we
disclaim any continuing  responsibility  for matters occurring after the date of
this letter.

         This opinion is rendered solely for your benefit in connection with the
Registration  Statement on Form S-8  respecting  shares of the Company's  common
stock to be issued under the Plans and may not be relied upon, quoted or used by
any other person or entity or for any other  purpose  without our prior  written
consent. We consent to the use of this opinion as an exhibit to the Registration
Statement  on Form S-8  respecting  shares of the  Company's  common stock to be
issued under the Plans.


                            Very Truly Yours,

                            /s/ WYCHE, BURGESS, FREEMAN & PARHAM, P.A.