Greenville, South Carolina has grown into one of the Southeast's most popular mid-size metros. For investors, the key local fact is that rentals are taxed at a 6% assessment ratio rather than 4%, which makes the tax line a bigger part of any DSCR refinance.
In short: A DSCR rate-and-term refinance from LendingStreet pays off the existing loan on a leased Greenville, SC rental and sets a long-term payment sized on the rent. Expect a $150,000 minimum loan, up to 80% LTV on some programs, a 1.0x standard minimum DSCR and a 620 credit floor, with no W-2s or tax returns. Growth in manufacturing along the I-85 corridor, a revived downtown, and steady in-migration keep Greenville rentals leased.
Growth in manufacturing along the I-85 corridor, a revived downtown, and steady in-migration keep Greenville rentals leased. Investors who bought new homes in Simpsonville, Greer or Fountain Inn, or renovated older homes in the city with short-term money, use a rate-and-term refinance to replace that debt with a long-term payment the rent can carry.
The goal is not cash. It is replacing interest-only, short-term debt with a 30-year amortizing loan available on most programs, so the property carries itself and the next maturity date disappears.
Investors buy in the West End, the Village of West Greenville, Parker District, Nicholtown, Overbrook and the Augusta Road area, plus suburbs such as Simpsonville, Mauldin, Greer, Taylors, Travelers Rest, Fountain Inn and Easley. Greer and the airport area benefit from nearby manufacturing employers.
The stock includes mill houses in the old textile villages, mid-century brick ranch homes, and large numbers of new subdivision homes built since 2000. HOA leasing limits are common in newer subdivisions.
Greenville appraisals in new subdivisions have plenty of comps, though builder sales can complicate value. Near downtown, renovated mill houses and homes in the West End can have wide value ranges. Rent comparables are strong across the county because demand from new residents keeps vacancy low.
The two refinances look similar on paper but solve different problems. Rate-and-term ends the existing debt; cash-out turns equity into money for the next property.
Seasoning rules decide how soon after purchase you can refinance and whether the new loan is based on the appraised value or your cost basis. They vary by program, so confirm them before you order the appraisal.
| Item | Rate-and-term | Cash-out |
|---|---|---|
| Purpose | Pay off existing debt and closing costs | Pull equity out as cash |
| Max LTV | Up to 80% on some programs | Up to 75% |
| Cash to you | Little or none | Equity above the payoff |
| Seasoning | Varies by program | Varies by program; often longer |
| Best fit | Ending hard money or bridge debt | Funding the next purchase |
This example is illustrative and not a quote. An investor owns a 2016 three-bedroom in Simpsonville, appraised at $322,000, with a $236,000 balance on a short-term loan. Rent is $2,250 a month. The new loan pays off the existing balance and rolls in about $5,500 of closing costs, for a loan of $241,500, or about 75% of value.
On 30-year amortization, estimated principal and interest is about $1,647 a month. Adding taxes of about $290, insurance of about $120 and HOA dues of $40 brings the total to about $2,097, so the DSCR is about 1.07x against the 1.0x standard minimum. The taxes here reflect the 6% assessment ratio for rentals. Had the estimate used the seller's owner-occupied bill, the DSCR would look better on paper than it really is.
| Item | Amount |
|---|---|
| Appraised value | $322,000 |
| Existing loan payoff | $236,000 |
| Closing costs rolled in | $5,500 |
| New loan amount | $241,500 (about 75% LTV) |
| Estimated principal and interest | $1,647 |
| Taxes, insurance and HOA | $450 |
| Total monthly payment | $2,097 |
| Monthly rent | $2,250 |
| DSCR | About 1.07x |
South Carolina assesses owner-occupied homes at a 4% assessment ratio but rentals at a 6% assessment ratio, so a rental's bill can be much higher than the seller's if the seller lived there. Counties reassess on a five-year cycle, with limits on increases that reset when the property sells.
South Carolina's deed recording fee applies to transfers, not refinances. Closing costs are mostly attorney, title, recording, appraisal and lender fees.
Greenville sees severe storms and occasional tornadoes, and some homes along the Reedy River and its creeks are in flood zones. Roof age drives most quotes.
The City of Greenville and Greenville County regulate short-term rentals through permits and business licenses, and many HOAs limit leasing. Confirm the rules before planning on short-term income. In South Carolina the 4% assessment ratio requires the owner to apply and live in the home, so a rental bought from an owner-occupant will be billed at the 6% assessment ratio once the county processes the sale. Building the higher tax into your DSCR estimate avoids a surprise after closing.
Our investor loans are business-purpose loans on non-owner-occupied property. Expect a credit check, an appraisal with a rent schedule, and a title review.
Order the payoff letter early and ask your current lender about any per-diem interest and release fees. Delays there are the most common reason a refinance closing slips.
Get a quote with the form below or call (877) 298-1001. We review the payoff, the rent and the costs, then confirm loan size and timing. See our South Carolina rate-and-term refinance page for statewide details.
Most refinances close in a few weeks once the appraisal and title are in. If your short-term loan matures soon, tell us the date up front so we can plan around it.
Rentals are assessed at a 6% assessment ratio versus 4% for owner-occupied homes. Use the rental assessment when estimating your DSCR.
Usually, if the HOA allows long-term leasing. Have the HOA rules ready, since some cap the number of rentals.
No. This page covers Greenville, South Carolina. We also have a page for Greenville, North Carolina.
Yes. Mill houses in the old textile villages often make good rentals once updated, and the appraisal will compare with nearby renovated sales.
The minimum is 620. Higher scores can improve terms.
The DSCR basics are the same, but max LTV can be lower on 5-8 units and larger balances; it varies by program.
No. DSCR loans qualify on the property's rent. You do not need W-2s or tax returns.
Some programs allow sub-1.0 DSCR loans. Lower leverage or a lower payment can also help.
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