In South Carolina, a rental is taxed very differently from the same house when an owner lives in it. That gap, plus coastal wind insurance, is what decides most large DSCR loans along the coast.
In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ on South Carolina rentals with 1 to 8 units, qualified on the property's rent with no W-2s or tax returns. Rentals are assessed at a 6% assessment ratio instead of the 4% used for primary homes and do not get the school operating exemption, so taxes can be far higher than the seller's bill. Max LTV on larger loans varies by program.
In the Charleston area, South of Broad, Harleston Village, Mount Pleasant, Daniel Island, Isle of Palms, Sullivan's Island, Folly Beach and Kiawah Island carry the highest values. Hilton Head, including Sea Pines and Palmetto Dunes, and Bluffton have large vacation and resort homes.
The Grand Strand around Myrtle Beach and Pawleys Island has beach houses, and in the Upstate, Greenville's Augusta Road and North Main areas and Lake Keowee have growing high-end markets.
Population growth has pushed many of these properties into jumbo range. The Charleston region has added residents and employers in aerospace, technology and the port, and Greenville has drawn manufacturers and corporate offices. Relocating executives often lease before they buy, which supports high rents in Mount Pleasant, Daniel Island and Greenville's close-in neighborhoods.
| Area | Typical high-value property | What to check |
|---|---|---|
| South of Broad, Mount Pleasant, Daniel Island | Historic and large homes | City STR rules, flood zone, 6% assessment ratio |
| Kiawah, Isle of Palms, Hilton Head | Resort and beach homes | Wind pool coverage, HOA rental rules |
| Greenville, Lake Keowee | Large homes and lake homes | Comparable leases, dock and septic |
South Carolina assesses an owner's primary residence at a 4% assessment ratio and most other residential property, including rentals and second homes, at a 6% assessment ratio. Primary homes are also exempt from school operating millage, while rentals pay it. The combination can make a rental's bill two to three times the seller's.
When you buy from an owner-occupant, budget taxes at the 6% assessment ratio with full millage on your purchase price. The county assessor can give you an estimate. Using the seller's bill can overstate the ratio badly.
Insurance is the other coastal factor. Many barrier island and beach homes get wind and hail coverage through the South Carolina Wind and Hail Underwriting Association, and flood insurance is required in mapped flood zones. Elevation certificates, roof age and storm shutters all affect premiums. On a $2M+ beach house, wind and flood together can rival the tax bill.
This example is illustrative and not a quote. An investor buys a Mount Pleasant home for $2,400,000 and leases it for $14,500 a month. Taxes at the 6% assessment ratio with full millage are budgeted at $2,700 a month, and insurance with wind and flood coverage at $800. Two loan amounts are shown below, each with estimated principal and interest over 30 years.
At 65% LTV the loan is $1,560,000, estimated principal and interest is about $10,510, the total payment is about $14,010 and DSCR is about 1.03x. At 60% the loan is $1,440,000, the payment is about $13,202 and DSCR is about 1.10x. At 65% the ratio barely clears the 1.0x standard minimum; at 60% it has more room. On South Carolina coastal rentals, lower leverage is common because taxes and insurance are both high.
| Item | 65% LTV | 60% LTV |
|---|---|---|
| Purchase price | $2,400,000 | $2,400,000 |
| Loan amount | $1,560,000 | $1,440,000 |
| Down payment | $840,000 | $960,000 |
| Estimated principal and interest | $10,510 | $9,702 |
| Taxes and insurance | $3,500 | $3,500 |
| Total monthly payment | $14,010 | $13,202 |
| Monthly rent | $14,500 | $14,500 |
| DSCR | About 1.03x | About 1.10x |
The City of Charleston limits short-term rentals in most residential zones to owner-occupied properties, with whole-home nightly rentals allowed mainly in specific overlay areas. Isle of Palms, Folly Beach, Mount Pleasant and Hilton Head each have their own licensing and limits.
Resort areas like Kiawah, Hilton Head and the Grand Strand have established vacation rental markets. Some programs qualify on projected STR revenue, but only where the property can legally operate that way.
HOAs on Kiawah, Hilton Head and Daniel Island often have their own rental registration, minimum stay rules and fees, so read the covenants alongside the town ordinance before you count on income.
Outside the coast, jumbo balances usually mean 5 to 8 unit buildings in Charleston's upper peninsula, Columbia or Greenville, or groups of rentals in fast-growing suburbs like Summerville, Fort Mill and Simpsonville.
A blanket portfolio loan can combine five or more rentals with one closing and release provisions.
Underneath, a jumbo DSCR loan works like any rent-based loan: a 620 minimum score, LLC borrowers welcome, no W-2s or tax returns, and a payment that the rent should cover at 1.0x or more on standard programs.
The differences come with size. Expect leverage below the standard 80% purchase and 75% cash-out ceilings, larger reserve requirements and, on some programs, a second valuation. Each large loan is priced on its own facts, so terms vary by program.
South Carolina charges a deed recording fee based on the price, customarily paid by the seller. Attorneys conduct closings in South Carolina, so expect attorney fees along with title insurance and lender costs.
Gathering these early keeps the appraisal and underwriting moving.
Our investor loans are business-purpose loans on non-owner-occupied property. We finance DSCR loans on 1 to 8 unit rentals in Charleston, Beaufort, Horry, Greenville and Oconee counties and across South Carolina.
Send the address, price or value, rent and the leverage you want. We will run the ratio on realistic taxes and insurance, test it at more than one loan amount and come back with options. Call (877) 298-1001 or use the form below.
Rentals are assessed at a 6% assessment ratio, not 4%, and pay school operating millage. Budget on the investor figure.
In most residential zones the city requires owner occupancy for STRs. Whole-home nightly rentals are limited to specific areas, so check zoning first.
It provides wind and hail coverage for many coastal South Carolina properties. Its premium counts in your DSCR payment.
Yes, if it is non-owner-occupied investment property and local and HOA rules allow rentals.
Purchase leverage goes up to 80% LTV on standard programs, but on jumbo balances it is often lower and varies by program, so plan for a larger down payment.
Yes, 30-year terms are available on DSCR loans, including larger balances, subject to program review.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so a home you live in does not qualify.
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