Charleston is one of the few Southeast metros where a single rental routinely tops $1.5M. It is also where taxes, flood insurance and short-term rental rules can quietly push a DSCR below 1.0x if you budget on the seller's numbers.
In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ for Charleston-area rentals, qualified on rent with no W-2s or tax returns and LLC borrowers allowed. South Carolina assesses rental property at a 6% assessment ratio instead of the 4% ratio owners get, so an investor's tax bill is often much higher than the seller's. Flood and wind coverage and the city's owner-occupancy rule for most short-term rentals are the other big local factors.
On the peninsula, South of Broad, Harleston Village, Ansonborough and Wagener Terrace have historic single houses, many with multiple units or carriage houses. Medical University of South Carolina and College of Charleston staff and students keep long-term demand strong downtown.
Across the harbor, the Old Village in Mount Pleasant, Daniel Island and I'On have larger newer homes. The barrier islands (Isle of Palms, Sullivan's Island, Folly Beach and Kiawah) are where most high-value vacation rentals sit, each with its own town rules. James Island, West Ashley and Summerville round out the long-term rental market.
| Property | Areas | Local question |
|---|---|---|
| Historic multi-unit house | South of Broad, Harleston Village, Ansonborough | Board of Architectural Review limits on changes |
| Large suburban home | Old Village, Daniel Island, I'On, James Island | Flood zone and elevation certificate |
| Beach or island home | Isle of Palms, Folly Beach, Kiawah | Town STR license and wind coverage |
At LendingStreet, jumbo DSCR financing generally means a loan of about $1.5M to $5M+ on a non-owner-occupied rental with 1 to 8 units. You can use it to buy, to refinance into better terms, or to pull cash out.
The file is underwritten on the rent: monthly rent divided by principal, interest, taxes, insurance and any HOA dues. Most programs want that ratio at 1.0x or better, with a 620 minimum credit score and no personal income documents. LLCs can borrow, and 30-year terms are available. The leverage ceiling of 80% LTV on a purchase and 75% on cash-out tends to drop as the balance rises; it varies by program.
South Carolina taxes an owner-occupied legal residence at a 4% assessment ratio, but other residential property, including rentals, at a 6% assessment ratio. Owners also get relief from some school operating millage. When an investor buys from an owner-occupant, the parcel moves to the 6% class and the bill can rise sharply.
Charleston County reassesses on a five-year cycle, and a sale can trigger a new value up to the price paid. Pull the county's estimate for the parcel at 6% and at your purchase price, then use that in your ratio. South Carolina also charges a deed recording fee based on the price, usually paid by the seller.
This example is illustrative and not a quote. Here is how the single high-value rental works at two loan sizes. An investor buys a renovated four-unit historic house downtown for $2,000,000, leasing each unit on a 12-month lease. It rents for $14,000 a month. Taxes are budgeted at $2,150 a month, insurance at $900.
At 75% LTV the loan is $1,500,000 and estimated principal and interest is about $10,360, for a total payment of about $13,410 and a DSCR of about 1.04x. At 65% LTV the loan is $1,300,000, estimated principal and interest is about $8,979, the payment is about $12,029 and DSCR is about 1.16x.
This property has four units, so it is a 1 to 4 unit residential rental and qualifies on the combined rent of all units. Taxes here assume the 6% assessment class, which is the number many first-time Charleston investors miss.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Loan amount | $1,500,000 | $1,300,000 |
| Estimated principal and interest | $10,360 | $8,979 |
| Property taxes | $2,150 | $2,150 |
| Insurance | $900 | $900 |
| Total monthly payment | $13,410 | $12,029 |
| Monthly rent | $14,000 | $14,000 |
| DSCR | About 1.04x | About 1.16x |
Much of Charleston is low-lying, and tidal flooding on the peninsula is frequent. Hurricanes and tropical storms add wind risk. Many properties need flood insurance, and wind coverage on the islands can come with high deductibles.
The City of Charleston requires a permit for short-term rentals and, in most residential districts, requires the operator to live on the property, which does not fit an investor loan. Limited exceptions exist in certain overlay zones. Assume a city property must work on long-term rent unless the zoning clearly allows otherwise.
Isle of Palms, Folly Beach and Kiawah each license short-term rentals under their own rules, and some limit new licenses or occupancy. If a property qualifies on projected short-term revenue, our STR program can review it; check the town's rules before you buy.
Charleston has true jumbo-value single rentals, but long-term rents on large homes often trail prices, so expect more equity on single-family files.
Underwriting tightens as the loan grows. Reserves are typically higher, appraisals are reviewed more closely and a second valuation may be required on some programs. At the top end, few nearby sales and leases match the subject property, so documentation of rent matters.
If coverage falls short, you can bring more cash, resize the loan or look at a sub-1.0 DSCR program.
For refinances, the same rules apply with a few changes: cash-out is capped at 75% LTV and frequently set lower for big balances, rate-and-term goes to 80% LTV on some programs, and the ownership period required before cash-out varies by program.
Gather these before you ask for terms; a complete package gets a faster answer.
Our investor loans are business-purpose loans on non-owner-occupied property. For statewide detail, see our South Carolina jumbo DSCR page.
Send the address, price or estimated value, current or projected rent and the leverage you want. The LendingStreet team will run the ratio on realistic taxes and insurance, test it at a few loan sizes and come back with options. You can also call (877) 298-1001 or use the form below.
Owner-occupied homes are taxed at a 4% assessment ratio, while rentals are taxed at 6%. A sale can also reset the value.
There is no stated maximum on our DSCR programs. Jumbo loans commonly run from about $1.5M to $5M+, with leverage and reserves set by program and by the size of the loan.
In most residential districts the city requires the operator to live on site, so an investor property generally cannot run as an STR. Some overlay zones and island towns differ.
Yes, in the sense that no W-2s or tax returns are required. The property's rent has to cover the full payment, and credit, reserves and funds to close are still verified.
Yes. Required flood insurance is part of the monthly payment used in the ratio.
No, but it is common and fully allowed. If you use one, we will need the formation documents and operating agreement, and you will typically sign for the loan personally.
No. Our investor loans are business-purpose loans on non-owner-occupied property. The home must be held as a rental.
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