The usual Grand Strand refinance story starts with short-term money: a hard money or bridge loan used to buy and fix a rental. Once the work is done and the property is leased or booked, that loan needs to be replaced with long-term financing before it matures.
In short: LendingStreet refinances Myrtle Beach-area rentals of 1 to 8 units out of hard money, bridge, seller financing or an existing mortgage into a DSCR loan that qualifies on the property's rent. Rate-and-term refinances go up to 80% LTV on some programs, the standard minimum DSCR is 1.0x, the minimum credit score is 620 and 30-year terms are available. No W-2s or tax returns are required.
A rate-and-term refinance pays off existing debt and closing costs without taking significant cash out. On the Grand Strand, investors use it to replace an interest-only bridge or rehab loan with an amortizing 30-year loan, pay off a balloon or seller-financed note, move a property into an LLC with long-term financing, or get a lower payment or better terms on an older loan.
Because no extra cash is taken out, some programs allow higher leverage than a cash-out refinance, up to 80% LTV, which helps investors who used most of their equity on the rehab.
The payment difference is usually the headline. A short-term rehab or bridge loan is interest-only and often priced for its short term. Moving to a 30-year amortizing loan can lower the monthly payment even though principal is now being paid down, and it removes the risk of a balloon coming due in a slow sales season.
The kind of debt being replaced changes what the file needs. The table shows typical Grand Strand cases.
Whatever the source of the current debt, gather its payoff terms and payment history early. A clean record of on-time payments on the short-term loan helps the file move smoothly.
| Situation | Typical property | What the file needs |
|---|---|---|
| Hard money rehab loan | Socastee or Conway ranch, now leased | Lease, payoff letter, completed work |
| Bridge loan on a beach house | Garden City or North Myrtle Beach STR | Booking history or revenue projection |
| Maturing balloon note | Older duplex in Myrtle Beach | Payoff letter, current rents |
| Seller financing | Inland rental in Loris or Aynor | Note terms, payment history |
| Construction loan on a build-to-rent home | New home in Longs or Little River | Certificate of occupancy, lease |
This example is illustrative and not a quote. An investor bought and renovated a duplex in Myrtle Beach with a short-term rehab loan that now has a $285,000 balance. Both units are leased for a combined $2,900 a month, and the property appraises at $400,000. The current interest-only payment is an estimated $2,612 a month, plus about $515 for taxes and insurance, about $3,128 in all, and the loan matures in a few months.
A new 30-year DSCR loan of $295,000, about 73.75% LTV, pays off the $285,000 balance and most of the closing costs. Estimated principal and interest is $2,012, taxes are $300 and insurance is $215, for a total payment of $2,527. At $2,900 in rent, DSCR is about 1.15x. The monthly payment drops by about $600, and the maturity date is gone.
| Item | Rehab loan today | New DSCR loan |
|---|---|---|
| Loan balance | $285,000 | $295,000 |
| Payment type | Interest-only | Principal and interest, 30 years |
| Estimated debt payment | $2,612 | $2,012 |
| Taxes and insurance | $515 | $515 |
| Total monthly payment | $3,128 | $2,527 |
| Combined rent | $2,900 | $2,900 |
| DSCR | About 0.93x | About 1.15x |
The appraisal sets both the value and, for long-term rentals, the market rent. On the Grand Strand, comparable sales can vary a lot between east and west of the Intracoastal Waterway and between flood zones, so give the appraiser your renovation list, permits and photos. Signed leases at market rent support the income, and a property still in rehab or not yet leased will usually need to wait.
If the appraisal comes in lower than expected, the loan amount follows the value. Investors who spent heavily on finishes in a modest neighborhood sometimes find the appraisal does not reflect every dollar. Comparable renovated sales near the property are the best support.
If the property is a vacation rental, some programs qualify on its booking history or a third-party revenue projection. Investors who bought a beach house with bridge financing in winter often have a spring and summer of bookings by the time they refinance, which helps. The property must be allowed to operate as a nightly rental under local zoning and HOA rules, with a business license and accommodations tax registration. See our STR refinance page for details.
Booking statements from the rental platforms or a property manager's owner statements are the usual proof of income.
Escrows on the new loan will reflect the 6% assessment ratio for a non-owner-occupied home and your current insurance premium. If the county reassessed after your purchase, use the new bill, not the one from when you bought. A wind-rated roof, elevation certificate and current flood quote help keep the insurance line, and the ratio, accurate.
Property taxes deserve a second look in a refinance. Because the purchase was an assessable transfer of interest, the county may have already reset the value to your price, and the bill may now reflect the 6% assessment ratio. Make sure the escrow estimate uses that updated figure.
Short-term loans come with a maturity date, and extensions can be costly. Start the refinance 60 to 90 days before maturity so there is time for the appraisal, title work and the attorney closing South Carolina requires. If the rent will not support the full payoff, you may need to bring cash or consider a sub-1.0 DSCR program.
If the current lender charges extension fees or default interest after maturity, those costs can eat into your equity quickly. Ask for a payoff letter early so you know the exact number, including per-day interest, and plan the closing date around it.
Send the address, current balance and maturity date, rent and estimated value. We will tell you what the ratio supports and how quickly we can close. Use the form below or call (877) 298-1001. See our South Carolina rate-and-term page for statewide information.
A refinance that pays off existing debt and closing costs without taking significant cash out. It is often used to replace short-term loans with long-term financing.
Up to 80% LTV on some programs. Larger balances and 5 to 8 unit buildings may have lower limits, varying by program.
Yes, once the work is complete and the property is leased or has rental income. Programs have different seasoning rules.
No. The loan qualifies on the property's rent compared with the new payment.
Yes, on some programs, using booking history or projected revenue, if nightly rentals are legal at the address.
You may need to pay down part of the balance at closing, or a sub-1.0 DSCR program may fit.
Allow several weeks for the appraisal, title and attorney closing. Start well before your current loan matures.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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