1st Advantage MortgageHome / South Carolina
DSCR loans in South Carolina
Rental property loans for SC investors that qualify on the property's income, with local notes on taxes, flood insurance and closings.
DSCR loans in South Carolina qualify a rental property on its own rent instead of your personal income. 1st Advantage Mortgage is licensed in SC and compares specialist lenders for purchases, rate and term refinances and cash-out refinances on single-family rentals, townhomes, 2 to 4 unit properties and many condos from the Upstate to the coast.
How DSCR loans work in South Carolina
The DSCR formula does not change at the state line: monthly rent divided by PITIA. South Carolina has a few cost and closing details that affect the ratio and your plan.
- Higher assessment on rentals. South Carolina generally assesses owner-occupied residential property at a lower ratio than other residential property. An investor buying a rental should expect a higher tax bill than the seller's owner-occupied bill, and a sale can also trigger a reassessment. Confirm the post-purchase estimate with the county assessor, and use that number in your PITIA.
- Attorney closings. South Carolina residential closings run through attorneys, and we coordinate with yours.
- Coastal insurance and flood. Properties near the coast can need windstorm and flood coverage, and those premiums count in the ratio. Get quotes before you write an offer in Charleston, Myrtle Beach or other coastal markets.
- Short-term rental rules are local. Cities, counties and HOAs set their own rules, permits and taxes. Confirm them before you underwrite on nightly income.
Where we help in South Carolina
Our office is in Charlotte, minutes from the state line, and we work with investors across South Carolina. Choose a market:
- DSCR loans in Greenville, SCLocal market guide
- DSCR loans in Charleston, SCLocal market guide
- DSCR loans in Columbia, SCLocal market guide
- DSCR loans in Myrtle Beach, SCLocal market guide
Typical South Carolina DSCR loan details
| Item | General guidance |
|---|---|
| Ratio | 1.0 or higher is the common benchmark. Select programs go down to 0.75, and a few offer no-ratio |
| Credit | From 600 on select programs, commonly 620 to 680 |
| Down payment | Commonly 20% to 25% on a purchase, up to 85% LTV on select programs |
| First-time investors | Accepted on select programs. See first-time investor DSCR loans |
| Documents | No tax returns, W-2s or pay stubs on any program |
| Borrower | Individual or LLC on many programs |
| Property types | Single-family, townhome, 2 to 4 unit, many warrantable condos |
General guidance only. Programs vary by lender and are subject to change. This is not a commitment to lend.
Next steps
Test your numbers in the DSCR calculator, then request a quote. If you also invest in North Carolina, see DSCR loans in North Carolina.
Ready to run your numbers?
Free quote. No credit pull to start. A licensed 1st Advantage Mortgage team member follows up.
Frequently asked questions
Do you make DSCR loans in both North Carolina and South Carolina?
Yes. 1st Advantage Mortgage is licensed in North Carolina and South Carolina, along with Texas, Florida, Virginia and Pennsylvania, and works with investors across both Carolinas. Our office is in Charlotte, and we handle files remotely for the rest of both states.
Are property taxes and insurance included in the DSCR calculation?
Yes. The payment in the DSCR formula is PITIA: principal, interest, taxes, insurance and any association dues. In flood zones, required flood insurance is part of the insurance cost. In South Carolina, investment property is generally assessed at a higher ratio than owner-occupied property, so check the tax estimate after a purchase.
Do I need a closing attorney in North Carolina and South Carolina?
Yes, in practice. Both states conduct residential real estate closings through attorneys. Your attorney handles title work and closing, and we coordinate with them. We cannot give legal advice, so ask your attorney about entity structure and title questions.
Can I close a DSCR loan in an LLC?
Yes, on many programs. Closing in an LLC is common for investors and is one of the main reasons people move from conventional financing to DSCR. The lender will usually want the entity documents and a personal guarantee from the owners. Select programs also accept corporations or trusts. See DSCR loans for LLCs. Ask a North Carolina or South Carolina attorney or CPA how to structure ownership, because we do not give legal or tax advice.
Can I use a DSCR loan for an Airbnb or short-term rental?
Some programs allow short-term rental income when it is documented with a 12-month rental history from the platform or a third-party market projection. Others only use long-term market rent even if you plan to run the property nightly. Tell your officer at the start so the file goes to a lender that accepts your plan. Read more on our short-term rental DSCR page.
What DSCR ratio do I need?
A DSCR of 1.0 or higher, meaning the rent covers the full payment, is the common benchmark and gets the widest choice of programs. Across our lender network, select programs accept ratios as low as 0.75, and a few offer no-ratio options where the rent does not have to cover the payment at all. Those lower-ratio programs usually ask for a larger down payment, more reserves or higher pricing. What is allowed depends on the program, so treat any number as general guidance and not a promise. See DSCR loans below 1.0 and no-ratio loans.
Free, no obligation
Get your South Carolina DSCR loan quote
Tell us about the property. A licensed 1st Advantage Mortgage team member follows up with you. There is no fee to ask and no credit pull to start.
- We compare specialist wholesale lenders instead of fitting you to one lender's menu
- Qualify on the property's rent, with no tax returns, W-2s or pay stubs on any program
- North Carolina and South Carolina investors, including first-time investors and LLC buyers
- Talk to a person: call 704-343-8681
Prefer to apply directly? Start an application with 1st Advantage Mortgage.