In the Charleston area, two numbers move a refinance more than anything else: the property tax on a rental, which South Carolina assesses at a higher ratio than an owner's home, and the wind and flood insurance that comes with life near the coast.
In short: LendingStreet refinances Charleston-area rentals out of hard money, bridge and existing loans with 30-year DSCR loans that qualify on the property's rent. Loans start at $150,000, rate-and-term reaches 80% LTV on some programs and the standard minimum DSCR is 1.0x. South Carolina taxes rentals at a 6% assessment ratio instead of the 4% ratio for a primary residence, and coastal insurance can add more to the payment than taxes do.
North Charleston, Hanahan, Goose Creek, Ladson and Summerville have the region's largest supply of single-family rentals, close to Joint Base Charleston, the port, Boeing and the Interstate 26 job corridor. West Ashley, James Island and Johns Island offer older ranches and newer subdivisions at higher prices.
The peninsula and Mount Pleasant command the highest rents and values, but also face stricter STR rules and higher insurance. Steady population growth has kept long-term rental demand strong across the three counties.
| Area | Typical rental stock | What to check before you refinance |
|---|---|---|
| North Charleston, Hanahan | Ranches and older single-family | Flood zones near marsh, roof age |
| Summerville, Goose Creek, Ladson | Newer subdivisions | HOA leasing rules, Dorchester or Berkeley taxes |
| West Ashley, James Island | Mid-century ranches, some new builds | Flood insurance, elevation certificate |
| Peninsula, Mount Pleasant | Historic homes, higher-end rentals | STR limits, wind and flood premiums |
A rate-and-term refinance replaces the short-term note with a 30-year DSCR loan sized to pay off the existing balance and closing costs. The new loan qualifies on the property's rent, not your W-2s or tax returns, and the standard minimum DSCR is 1.0x. On some programs rate-and-term goes up to 80% LTV.
Before refinancing a Lowcountry rental, get the elevation certificate and a flood insurance quote, even if the home is outside a mapped zone. Many investors are surprised by flood and wind premiums at refinance, and those numbers go straight into the ratio.
Hard money balances in Charleston are often larger than investors expect after interest reserves and extension fees. Ask for a payoff good through your expected closing date so the new loan covers the full amount.
This example is illustrative and not a quote. An investor renovated a three-bedroom ranch in North Charleston with a hard money loan. It leases for $2,450 a month and appraises at $360,000. The payoff is $250,000.
The new loan of $259,000 covers the $250,000 payoff plus $9,000 in closing costs, about 72% of the $360,000 value. Estimated principal and interest on a 30-year term is about $1,789. With taxes of $330 and insurance of $230 a month, the full payment is about $2,349 and DSCR is about 1.04x on $2,450 of rent.
The insurance figure includes wind coverage, and a flood policy would add to it if the home sat in a mapped zone.
What changes most is the structure: the balloon or maturity date goes away, the payment includes principal so the balance falls each month, and taxes and insurance are counted up front. Run your own numbers with the DSCR calculator before you apply.
| Item | Before: hard money note | After: DSCR rate-and-term |
|---|---|---|
| Loan balance | $250,000 | $259,000 |
| Monthly principal and interest | $2,396 (interest only) | $1,789 |
| Taxes, insurance | $560 | $560 |
| Total monthly payment | $2,956 | $2,349 |
| DSCR at $2,450 rent | About 0.83x | About 1.04x |
| Term | Short-term, due soon | 30 years |
South Carolina assesses a primary residence at a 4% assessment ratio and other residential property, including rentals, at a 6% assessment ratio. Owner-occupants also get school operating tax relief that investors do not. When you buy from an owner-occupant, expect a meaningfully higher bill.
Charleston, Berkeley and Dorchester counties reassess on a multi-year schedule, and municipalities add their own millage. South Carolina's deed recording fee applies to transfers, not refinances.
Coastal South Carolina carries hurricane and flood risk. Insurers often use separate wind deductibles, and some properties need wind coverage through a separate policy. Flood insurance is generally required in mapped zones.
The City of Charleston generally requires short-term rental operators in residential areas to live on the property, while beach towns like Folly Beach and Isle of Palms allow STRs with permits. Most refinances in the metro use long-term leases.
Duplexes and small multi-unit buildings appear on the peninsula, in North Charleston and in older parts of West Ashley. They qualify on combined rent, which helps offset higher insurance. Five to eight unit buildings are residential for DSCR purposes, though max LTV varies by program.
Newer subdivisions in Summerville and Goose Creek may have HOA rules on leasing, so confirm rentals are allowed before you apply.
The choice comes down to the goal. If you want to replace a short-term note or an expensive loan and keep the balance about where it is, use rate-and-term. If you want equity out to fund the next purchase, cash-out reaches 75% LTV, with seasoning that varies by program.
With insurance and the 6% assessment ratio already weighing on the payment, Charleston investors often choose rate-and-term rather than adding a larger cash-out balance.
Send these with your request and the financing team can size the loan on the first pass.
LendingStreet is an investment property financing company. Our investor loans are business-purpose loans on non-owner-occupied property, and we refinance 1-8 unit rentals across Charleston, Berkeley and Dorchester counties. Send the address, the payoff, the rent and the value you expect, or call (877) 298-1001. The financing team will run the ratio at a few loan amounts and come back with options. For statewide rules, see our South Carolina rate-and-term refinance page.
South Carolina assesses rentals at a 6% assessment ratio versus 4% for a primary residence.
It is generally required in a mapped flood zone. Get a quote even outside one, since it affects the payment.
Only where the property can legally operate as one. The city generally requires owner occupancy in residential areas, while beach towns permit STRs.
Yes. We refinance 1-8 unit rentals across Charleston, Berkeley and Dorchester counties.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the home must be a rental, not your residence.
DSCR loans start at $150,000 with no stated maximum. Larger balances get more review and can carry lower leverage.
If you own five or more investment properties, a blanket portfolio loan can combine them under one loan with one closing and one payment, qualified on portfolio cash flow.
Yes. 30-year terms are available on our DSCR programs, which is what lowers the monthly payment compared with an interest-only short-term note.
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