Charleston, Greenville, Columbia and the Grand Strand have all drawn rental investors, and appreciation has built equity across the state. A DSCR cash-out refinance turns that equity into cash on the strength of the property's rent.
In short: Yes, LendingStreet finances DSCR cash-out refinances on 1 to 8 unit investment property in South Carolina, up to 75% LTV, qualifying on the property's rent rather than your tax returns. The rent has to cover the new payment, including taxes and insurance, at the program minimum, which is 1.0x on standard programs, and the minimum credit score is 620. South Carolina taxes rentals at a higher assessment ratio than primary homes, and coastal wind and flood insurance can be steep, so those two lines usually set the loan amount.
You borrow against the rental's current value, retire the existing mortgage and keep the rest. The new loan is capped at 75% of appraised value on a cash-out, compared with up to 80% on a purchase. It works on 1 to 8 unit residential rentals, from a single-family home to a small 5-8 unit building, held in your name or an LLC.
The underwriter divides the rent by the new full payment, including taxes, insurance and any association dues. That ratio needs to be at least 1.0x on standard programs, and the post-cash-out payment is the one that counts. No W-2s or tax returns are involved, and the minimum credit score is 620.
If the ratio falls a little short at full leverage, a smaller loan or a sub-1.0 DSCR program can bridge the gap. Running the math at two or three loan amounts before you apply avoids surprises.
Greenville and Spartanburg in the Upstate have strong job growth and a large single-family rental market. Columbia has rentals near the University of South Carolina and Fort Jackson. On the coast, Charleston, North Charleston, Summerville and Mount Pleasant have higher prices, and Myrtle Beach and the Grand Strand, along with Hilton Head, have large vacation rental markets.
Inland markets often produce comfortable ratios. Coastal properties can carry high values but also high insurance and flood costs, which narrows the room for cash-out.
South Carolina's deed recording fee applies when a deed transfers on a sale, so a refinance where ownership does not change generally does not trigger it. There is no state mortgage tax. South Carolina closings are handled by attorneys, so expect an attorney fee along with title insurance, recording fees, the appraisal and lender costs.
If you are deeding the property into an LLC as part of the refinance, ask your closing attorney how the recording fee applies.
South Carolina assesses a primary residence at 4% of value, while rentals and second homes are assessed. That 50% higher ratio is why a rental's tax bill can be much higher than an owner-occupant's bill on a similar home. Value increases are also capped between reassessments, but a sale is generally a trigger for reassessment.
A refinance is not a transfer of ownership, so it does not trigger reassessment by itself. Underwriting uses the current bill. If you bought from an owner-occupant, confirm the bill now reflects the 6% ratio.
Along the coast, wind and hurricane coverage can be expensive, and many policies carry separate named storm deductibles. Much of Charleston, the Lowcountry and the Grand Strand sits in mapped flood zones, where flood insurance is required. Both premiums count in the DSCR payment.
Charleston regulates short-term rentals by zoning and permit, and Myrtle Beach and Horry County have their own rules. In established vacation markets, short-term rental programs can qualify on revenue, but only for properties that can legally operate that way.
This example is illustrative and not a quote. An investor owns a single-family rental in Greenville appraised at $360,000 with an existing loan of $160,000. Rent is $2,700 a month, and taxes and insurance run $560 a month.
At 75% LTV the new loan is $270,000, leaving $110,000 after the payoff and before closing costs. On a 30-year amortization, principal and interest is about $1,842, so the total payment is about $2,402 and the DSCR is about 1.12x, above the 1.0x standard minimum.
The $560 uses the 6% rental assessment ratio. A similar coastal home with wind and flood coverage could easily carry twice that, which is why coastal cash-outs are often sized lower.
| Item | Amount |
|---|---|
| Appraised value | $360,000 |
| New loan at 75% LTV | $270,000 |
| Existing loan payoff | $160,000 |
| Cash before closing costs | $110,000 |
| Monthly payment (P&I, taxes, insurance) | About $2,402 |
| DSCR at $2,700 rent | About 1.12x |
How soon you can cash out depends on the program. Some programs permit it shortly after purchase, and others use the lower of appraised value or cost basis until the property is seasoned. If you finished a renovation recently, keep invoices and photos, since they support the higher value.
Beyond seasoning, three things set the final number: the 75% LTV ceiling, the rent covering the new payment at the program minimum, and closing costs. Maximum LTV can be lower on 5-8 unit properties and larger balances; it varies by program.
The proceeds are yours to use for business purposes. Common uses include:
A complete file gets a faster, clearer answer. Have these ready when you reach out.
Yes. LendingStreet offers DSCR cash-out refinances on non-owner-occupied 1 to 8 unit rentals in South Carolina, up to 75% LTV, qualifying on the property's rent.
Start with 75% of the appraised value, subtract the payoff on your current loan and closing costs. Then check that the rent covers the new payment at 1.0x or the program minimum.
Generally no. The deed recording fee applies to transfers. A refinance with no change in ownership does not trigger it, though recording and attorney fees still apply.
Rentals are assessed at 6% of value, compared with 4% for a primary residence. Underwriting uses the bill at the rental ratio.
Often, yes, if it is licensed and operating legally. Short-term rental programs can qualify on revenue. Budget for wind and flood insurance, which can be significant on the coast.
Seasoning varies by program. Some allow cash-out soon after purchase; others want several months of ownership or cap the loan at purchase price plus documented improvements.
Yes. DSCR programs cover 1 to 8 units. Maximum LTV can be lower on 5-8 unit properties, so the cash-out may be smaller than on a single-family home. It varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the property must be a rental, not your residence.
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