South Carolina investors in Greenville, Columbia, Charleston and the Myrtle Beach area often buy with short-term money and refinance once the rental is leased. A DSCR rate-and-term refinance replaces that loan with long-term financing based on rent.
In short: Yes, LendingStreet offers DSCR rate-and-term refinances on 1-8 unit investment property in South Carolina, up to 80% LTV on some programs, qualifying on the property's rent instead of your income. It is the standard way to pay off a hard money, bridge or higher-rate loan and move into a long-term payment, with cash back limited to a small allowance. The rent has to cover the new payment at 1.0x on standard programs, the minimum credit score is 620, LLC borrowers are standard and loans start at $150,000.
The idea is simple: trade the current loan for a better one. The new balance covers the payoff and closing costs, can reach up to 80% LTV on some programs (cash-out tops out), and any cash back is held to a small allowance set by the program.
Underwriting centers on the DSCR: rent divided by principal, interest, taxes, insurance and HOA dues. The standard minimum is 1.0x, with sub-1.0 programs for rentals just under that line. Minimum credit is 620, LLCs are standard, terms run up to 30 years, and you do not need W-2s or tax returns.
| Rate-and-term | Cash-out | |
|---|---|---|
| Max LTV | Up to 80% on some programs | Up to 75% |
| Cash to borrower | Small allowance only | Equity above payoff |
| Typical goal | Lower rate or payment, exit short-term debt | Pull equity for the next deal |
| Qualifies on | Rent (DSCR) | Rent (DSCR) |
A bridge or hard money loan gets the property bought and fixed, but it is not meant to be held. The standard exit is to refinance into a DSCR loan once the unit is rented, rather than paying higher short-term interest or asking for an extension.
South Carolina's rental stock is largely single-family: newer subdivisions around Greenville, Spartanburg, Columbia and the Charlotte suburbs in York County, older homes in Columbia and Charleston's inner neighborhoods, and condos and vacation homes along the Grand Strand.
Coastal condos and older homes can bring wind, flood and HOA questions into the refinance. Get the insurance and HOA documents early.
South Carolina's deed recording fee applies to transfers on a sale, so a refinance where the owner stays the same usually avoids it. Expect lender's title insurance, county recording fees for the new mortgage and attorney fees.
South Carolina requires an attorney to supervise real estate closings. The closing attorney will handle the payoff, title and recording. Ask for a fee estimate early, and if the property is in an HOA or a coastal regime, expect the attorney to request a status letter confirming dues are current.
Because closing costs are usually rolled into the balance, they affect both the LTV and the ratio, so ask title for real numbers before you lock.
South Carolina assesses owner-occupied homes at 4% of value and other residential property, including rentals, so investors pay noticeably more tax than homeowners on similar houses. Use the investor tax bill. Coastal properties face higher wind and flood insurance costs.
When a file is close to the line, the fix is usually on the expense side: shop the insurance, confirm the actual tax bill and check whether any special assessments are scheduled.
This example is illustrative and not a quote. An investor bought and renovated a Greenville single-family rental using a hard money loan that now has a payoff of $245,000 interest-only, or about $2,348 a month in interest. The property now appraises at $350,000 and rents for $2,300 a month, with taxes and insurance of about $470 a month.
A rate-and-term loan of $253,000 covers the payoff plus $8,000 of closing costs, which is about 72.3% LTV, inside the 80% limit some programs allow. On 30-year amortization, principal and interest is about $1,683, so the total payment is about $2,153 and the DSCR is about 1.07x, above the 1.0x standard minimum. The investor stops paying short-term interest and starts paying down principal, with no cash taken out.
| Item | Amount |
|---|---|
| Appraised value | $350,000 |
| Hard money payoff | $245,000 |
| Closing costs financed | $8,000 |
| New loan amount | $253,000 |
| Loan-to-value | About 72.3% |
| Principal and interest | About $1,683 |
| Taxes and insurance | $470 |
| Total monthly payment | About $2,153 |
| Monthly rent | $2,300 |
| DSCR | About 1.07x |
Programs differ on seasoning. If you closed on the property recently, some will use the after-rehab appraisal and others will base the loan on what you paid plus documented improvements. Because rate-and-term only needs to cover the payoff, the lower figure is often still enough.
Expect the appraisal to include a market rent estimate alongside the value. Underwriting compares it with your lease, and the figure it uses depends on the program.
Greenville and Spartanburg have strong job growth and a growing rental market. Columbia has steady demand from state government, the University of South Carolina and Fort Jackson. Rock Hill and Fort Mill draw investors from the Charlotte area.
Charleston, Myrtle Beach and Hilton Head have active vacation rental markets, with local rules that vary by city and county. Confirm what is allowed before relying on nightly income.
Having these ready before you apply keeps the appraisal and underwriting moving.
Choose rate-and-term when you mainly want out of short-term debt or into a lower payment. Choose cash-out, up to 75% LTV, when you want to pull equity. If the ratio is short, a sub-1.0 program or finishing the lease-up may solve it. Leverage on 5-8 unit properties and larger balances varies by program.
Yes. Our investor loans are business-purpose loans on non-owner-occupied property, and we offer DSCR rate-and-term refinances on 1-8 unit rentals across South Carolina, starting at $150,000.
Up to 80% LTV on some programs. Maximum LTV can be lower on 5-8 unit properties and larger balances, and it varies by program.
Only a small amount set by the program. If you want to pull equity out, a cash-out refinance up to 75% LTV is the better option.
South Carolina assesses rentals at 6% of value compared with 4% for owner-occupied homes. Use the investor bill in your payment estimate.
Yes. South Carolina requires an attorney to supervise closings.
It depends on the program. Some use the new appraised value soon after purchase; others base the loan on purchase price plus documented improvements until a seasoning period passes.
Standard programs look for 1.0x, meaning rent at least equals the full payment. Sub-1.0 programs exist for rentals that fall slightly short.
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