Charleston-area values have climbed with Boeing, the port, MUSC and steady in-migration. If you own a rental in North Charleston, West Ashley, Summerville or Goose Creek, a DSCR cash-out can pull equity, as long as taxes and insurance still fit under the rent.
In short: LendingStreet offers DSCR cash-out refinances on Charleston-area investment properties with 1-8 units, up to 75% of appraised value. The loan qualifies on rent, not W-2s or tax returns, starts at $150,000 and needs a 620 credit score, and the rent has to cover the new payment at 1.0x on standard programs. In Charleston, South Carolina's higher assessment ratio for rentals, flood and wind insurance and strict STR permits are the local items to check.
A cash-out refinance replaces your current mortgage with a larger one and hands you the difference at closing. The new loan can reach 75% of appraised value, and no W-2s or tax returns are needed because the loan qualifies on the property's rent.
The test is simple: monthly rent divided by the full new payment, which covers principal, interest, taxes, insurance and HOA dues. Standard programs need 1.0x or better at the new loan amount, and sub-1.0 programs exist for some properties.
Common uses include the down payment on the next rental, renovation budgets on other properties, paying off short-term bridge or rehab debt and building reserves for the portfolio.
North Charleston, including Park Circle, Hanahan and Ladson, draws tenants working at Boeing, the port, Joint Base Charleston and the area's manufacturers. West Ashley, James Island and Johns Island have older and mid-century homes close to downtown and MUSC.
Summerville in Dorchester County and Goose Creek and Moncks Corner in Berkeley County have newer subdivisions with lower prices and HOAs. The peninsula itself carries high values and historic homes, where the ratio is tighter.
Rent growth in the Charleston area has been steady as Boeing, the port and MUSC expanded, but taxes and insurance rose too, so many investors find the ratio, not the value, is the limit.
South Carolina assesses an owner's legal residence at a 4% assessment ratio and rentals and second homes at a 6% assessment ratio. Rentals also pay school operating millage that owner-occupants are largely exempt from, so a rental's bill can be far higher than the same home's homestead bill.
Counties reassess every five years, with increases capped unless the property changes hands. For a cash-out, use the current bill at the 6% ratio, not the seller's legal-residence bill.
Much of the Charleston area is low-lying, with tidal and storm flooding on the peninsula, James Island, West Ashley and other areas. Flood insurance is required in mapped flood zones and is worth pricing everywhere. Wind coverage and hurricane deductibles also add to the premium.
Roof age, elevation and wind mitigation features affect quotes. Get a full insurance and flood quote before you apply, since together they can be a large share of the payment.
Elevation certificates can lower flood premiums on some homes. If you have one, include it with your insurance request.
The City of Charleston requires short-term rental permits and, in most residential areas, ties them to the owner's primary residence. Mount Pleasant, Folly Beach, Isle of Palms and other towns have their own rules. Confirm the permit status before relying on nightly income.
Where nightly rentals are permitted, our short-term rental programs can qualify on projected revenue on some programs.
This example is illustrative and not a quote. An investor owns a Park Circle area house that appraises at $420,000 with an existing payoff of $190,000. Rent is $2,850 a month, taxes at the 6% assessment ratio are $520 a month and insurance including flood is $260.
At 75% LTV the new loan is $315,000, which leaves about $125,000 after the $190,000 payoff, before closing costs. Estimated principal and interest on a 30-year schedule is about $2,203, so the total payment is about $2,983 and the DSCR is about 0.96x, below the 1.0x standard minimum. At 65% LTV the loan is $273,000, the payment drops to about $2,689 and the DSCR is about 1.06x, with about $83,000 in cash before closing costs.
Before settling on a cash amount, test the ratio at two or three loan sizes. The cash difference between them is often smaller than investors expect, while the extra cushion helps when taxes or insurance rise.
| Item | At 75% LTV | At 65% LTV |
|---|---|---|
| Appraised value | $420,000 | $420,000 |
| New loan amount | $315,000 | $273,000 |
| Existing loan payoff | $190,000 | $190,000 |
| Cash before closing costs | $125,000 | $83,000 |
| Estimated principal and interest | About $2,203 | About $1,909 |
| Taxes and insurance | $780 | $780 |
| Total monthly payment | About $2,983 | About $2,689 |
| DSCR at $2,850 rent | About 0.96x | About 1.06x |
South Carolina's deed recording fee applies to transfers, not refinances, and there is no mortgage recording tax. South Carolina closings are handled by an attorney, so expect attorney fees along with title insurance and recording.
How long you have owned the property affects the loan. Seasoning requirements vary by program, so share your purchase date and any renovation costs up front.
Pull these together before you apply.
Our investor loans are business-purpose loans on non-owner-occupied property. Tell us the address, rent, payoff and the cash you need, and we will check the ratio with realistic Charleston County taxes and insurance before ordering an appraisal.
If the full 75% does not fit, we will show what does, including sub-1.0 programs. Get a quote with the form below or call (877) 298-1001, and see our South Carolina cash-out page for statewide details.
South Carolina assesses rentals at a 6% assessment ratio versus 4% for a legal residence, and rentals pay school operating millage. The bill can be much higher.
If the property is in a mapped flood zone, yes. Even outside one, many investors carry it. The premium counts in the ratio.
Up to 75% of the appraised value, minus your payoff and closing costs. The rent also has to cover the new payment at the program minimum, which can limit the amount.
It depends on the program. Some lend on the new appraised value quickly, while others look back to the purchase price and improvement costs for the first months.
No. The loan qualifies on the property's rent. You still need a 620 or higher credit score, reserves and entity documents if the property is in an LLC.
Only if it is permitted. In most of the city, STR permits are tied to the owner's primary residence, so investor homes usually rent long-term.
Yes. We finance 1-8 unit rentals in Charleston, Dorchester and Berkeley counties.
Yes. Summerville rentals in Dorchester and Berkeley counties qualify on rent, often with lower flood exposure than the peninsula.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.