South Carolina DSCR Loans & Rates 2026

South Carolina DSCR loan terms at a glance

Term	Save Financial (20+ DSCR lenders)
Minimum DSCR	1.0+ for the best pricing; down to 0.75 on a separate program at a higher rate; no-ratio option where rent is not used
Max loan-to-value	Up to 80% on purchases (20% down); about 75% on the no-ratio program; cash-out typically 70–75%
Minimum credit score	660; 700+ improves pricing; 740+ gets the best rates
Loan amount	$150,000 to $3,000,000
Loan terms	30-year fixed, interest-only and ARM options
Prepayment	Usually 1 year; no-prepay and longer-prepay options trade against rate and fees
Residency	Not required — out-of-state investors welcome
LLC vesting	Yes — LLC, corporation or personal name, with a personal guarantee
Short-term rentals	Yes, where local rules allow them
Income documents	None — no tax returns, W-2s, pay stubs or debt-to-income ratio
Closing time	Often about 18 days once documents are complete; appraisal timing varies

South Carolina housing market at a glance

South Carolina home prices rose 45.4% over the five years to mid-2026, the 8th-largest gain among the 50 states and faster than the U.S. average of 33.4%, according to FHFA’s purchase-only index. About 28.1% of South Carolina households rent their home, versus 34.8% nationally.

Measure	South Carolina	United States
Households that rent their home	28.1%	34.8%
Median gross rent (per month)	$1,180	$1,413
Median value of owner-occupied homes	$259,000	$332,700
Home-price change, last 5 years (to Q2 2026)	+45.4%	+33.4%
Home-price change, last 12 months (to Q2 2026)	+2.4%	+2.1%
Population, July 1, 2025	5.6 million	341.8 million
Population change since April 2020	+8.8%	+3.1%

Sources: U.S. Census Bureau QuickFacts (renter share, rent and home value are 2020–2024 American Community Survey 5-year estimates; population is the Vintage 2025 estimate) and the FHFA House Price Index (purchase-only, seasonally adjusted, released August 2026).

Worth knowing about South Carolina

Census Bureau estimates ranked Myrtle Beach-Conway-North Myrtle Beach (3.2%) and Spartanburg (2.8%) as the nation’s 2nd and 3rd fastest-growing metro areas from July 2024 to July 2025. (U.S. Census Bureau: Vintage 2025 Metro/Micro and County Population Estimates press release)
South Carolina recorded $9.12 billion in announced capital investment and more than 8,100 new jobs from 82 industry recruitment projects in 2025, its third-highest year on record. (Office of the Governor: South Carolina Industry Recruitment Reaches $9.12 Billion in 2025)

What rent does a South Carolina rental need for a 1.0 DSCR?

At an illustrative 7.25% 30-year fixed rate with 20% down, South Carolina’s average property tax rate and our insurance assumption below, a rental priced like the Charleston median needs monthly rent of about 0.62% of its price to reach a 1.0 DSCR. Here is what the payment looks like at median prices in Charleston, Columbia, Greenville and Myrtle Beach.

Market	Median price	Monthly PITIA at 20% down (= rent needed for 1.0)	Rent needed as % of price
Charleston (Charleston County)	$659,636 (Redfin, Sep 2026)	$4,060	0.62%
Columbia (Richland County)	$273,000 (Redfin, Sep 2026)	$1,790	0.66%
Greenville (Greenville County)	$514,659 (Redfin, Aug 2026)	$3,210	0.62%
Myrtle Beach (Horry County)	$262,326 (Redfin, Aug 2026)	$1,730	0.66%

Assumptions: 7.25% 30-year fixed (an example, not a quote); property tax at 0.49% of value, South Carolina’s average effective rate on owner-occupied homes (rentals don’t get homestead breaks, so an investor’s effective rate is usually higher); insurance at $2,298 a year (ValuePenguin’s 2026 South Carolina average homeowners premium; coastal homes often pay far more); no HOA. Actual county tax rates, premiums and your rate will differ.

How much down do you need to reach 1.0?

If you know a property’s rent-to-price ratio (monthly rent ÷ price), this shows the down payment that gets it to a 1.0 DSCR for a home priced like the Charleston median, under the same assumptions.

Monthly rent as % of price	Down payment, 30-year fixed	Down payment, interest-only
0.35%	About 59%	About 54%
0.40%	About 52%	About 45%
0.45%	About 44%	About 37%
0.50%	About 37%	About 29%
0.55%	About 30%	About 21%
0.60%	About 22%	20% (the minimum)

If the numbers fall short, there are three other routes: a program that accepts a DSCR down to 0.75 at a higher rate, interest-only payments, or a no-ratio DSCR loan with about 25% down.

Example: a median-priced Charleston rental at three structures

The property: a $659,636 rental, the median price in Charleston (Charleston County).

Costs: property tax about $269 a month and insurance about $192 a month under the assumptions above. Rate is an illustrative 7.25%, an example and not a quote.

Structure	Loan	Monthly PITIA	Rent needed for 1.0
20% down, 30-year fixed	$527,709	$4,060	About $4,060
25% down, 30-year fixed	$494,727	$3,840	About $3,840
25% down, interest-only	$494,727	$3,450	About $3,450

The takeaway: moving from 20% down to 25% down with interest-only lowers the rent this property needs to qualify by about $610 a month. We price each structure side by side so you can compare the extra cash against the rate.

South Carolina property tax and insurance: what changes the DSCR

Property tax

South Carolina’s average effective property tax rate is about 0.49% of home value for owner-occupied homes, per the Tax Foundation. South Carolina assesses an owner’s legal residence at 4% of value, but second homes and other non-owner-occupied residential property, including rentals, are assessed at 6%. The legal-residence classification also exempts the home from school operating millage, so a rental pays both the higher ratio and school operating levies, which is why the Tax Foundation’s owner-occupied rate understates an investor’s bill. Lenders use the tax bill you will actually pay as an investor, so get the county’s estimate for a non-owner-occupied property before you make an offer.

Insurance

ValuePenguin puts South Carolina’s average homeowners premium at $2,298 a year, modestly above its $2,151 national average, and says premiums nationally rise about 6-7% a year. Hurricanes and other wind and hail events are the main coastal hazard; property in the designated coastal territory that meets eligibility rules can buy wind and hail coverage from the South Carolina Wind and Hail Underwriting Association (the state wind pool) through any licensed agent. The SC Department of Insurance reports to the legislature each year on the coastal market and the wind pool. A rental needs a landlord (dwelling) policy, and the full premium goes into the payment the rent has to cover, so get a real quote early.

South Carolina landlord rules that matter to a lender

Rent control: S.C. Code 27-39-60 bars counties and cities from enacting, keeping or enforcing any ordinance that regulates the rent charged on privately owned residential or commercial rental property.

Evictions: If rent is not paid within five days of the due date, the landlord may terminate after written notice of nonpayment; that notice requirement is met if the lease contains the statutory notice in conspicuous language or one notice has already been given during the tenancy (S.C. Code 27-40-710(B), 27-37-10(B)). The landlord then applies to the magistrate’s court for a rule to vacate, and the tenant must leave or appear and show cause within ten days after the rule is served (S.C. Code 27-37-20).

Deductions from a security deposit must be itemized in writing and the balance returned within 30 days after the tenancy ends, possession is delivered and the tenant demands it (S.C. Code 27-40-410); the statute sets no cap on deposit size.

Short-term rental rules in South Carolina markets investors ask about

A lender only counts Airbnb or VRBO income if the property can legally operate as a short-term rental. If it can’t, the loan is sized on long-term rent from the appraiser’s rent schedule.

Charleston: The City of Charleston only permits short-term rentals in a host’s full-time primary residence, verified through the county’s 4% legal-residence tax rate, with permit categories by area and an extra off-street parking space required. Investment (non-owner-occupied) properties are not eligible, except commercially zoned property in the Cannonborough-Elliotborough STR overlay, which can seek a commercial STR permit. Up to four adults may stay, permits and business licenses renew annually, and operators must collect accommodations tax.
Myrtle Beach: Myrtle Beach does not allow short-term rentals (under 90 days) in any zoning district beginning with ‘R’ except the RMV residential multifamily visitor zone, and homes outside an allowed zone cannot be converted to STR use apart from a small number of grandfathered properties. Any rental requires a city business license, and violations can bring fines up to $500 and/or 30 days in jail. Investors should check a property’s zoning before buying.
Hilton Head Island: Every short-term rental on Hilton Head needs a town STR permit, priced at $150 per bedroom per year (May 1-April 30), in addition to a business license. Rules effective May 1, 2026 require the permit number on all ads, applications in an individual’s name rather than an entity, HOA confirmation where applicable, and a six-vehicle driveway limit, with fines of $250 to $1,000 per violation. The town FAQ does not list an owner-occupancy requirement or cap.

Rules change often. Confirm the permit status for the exact address with the city or county before you buy.

Other South Carolina factors for rental investors

Rentals are assessed at 6% of value versus 4% for an owner’s legal residence, and they also pay school operating millage that legal residences are exempt from, so an investor’s property tax bill can be much higher than the owner-occupied average.
South Carolina’s individual income tax is graduated with a top rate of 5.21% as of January 1, 2026, per the Tax Foundation.
State law imposes a civil penalty of $500 to $2,000 for each seven days a short-term rental operated without collecting and remitting accommodations tax, and the owner stays liable even when a property manager is used (as summarized by the City of Charleston).
Coastal rentals may need separate wind and hail coverage from the state wind pool (South Carolina Wind and Hail Underwriting Association) if standard carriers will not write it.

Broker vs. direct DSCR lender

A direct DSCR lender can only offer its own program. As a broker, Save Financial compares 20+ DSCR lenders, including lenders active in South Carolina, which matters most when a property doesn’t fit the standard box.

	Single direct DSCR lender	Save Financial (broker, 20+ lenders)
Programs available	One lender’s guidelines and rate sheet	Guidelines and pricing from 20+ DSCR lenders, compared for your file
DSCR below 1.0	Only if that lender offers it	A program down to 0.75, plus a no-ratio option
Short-term rental income	That lender’s single method	Matched to the lender whose method gives the strongest qualifying rent
Lease requirement	Usually required on occupied units	One of our lenders uses the appraiser’s market rent with no lease
Reserves	Set by that lender	Cash-out loans generally need none; one lender requires none at all
Prepayment penalty	That lender’s structures	Choose 1-year, no-prepay or longer, priced side by side
How the originator is paid	Built into the rate and fees	Disclosed on your Loan Estimate; when lender-paid, it’s reflected in the rate

South Carolina DSCR loan questions

Can I get a DSCR loan in South Carolina if I live in California or another state?

Yes. A DSCR loan qualifies on the South Carolina property’s rent, not your residency, job or tax returns, so out-of-state investors close South Carolina rentals the same way local investors do. Save Financial is a California-based broker that arranges South Carolina DSCR loans through lenders active in the state.

What DSCR do lenders require in South Carolina?

A DSCR of 1.0 or higher, meaning the rent covers principal, interest, taxes, insurance and any HOA, gets the best pricing. A separate program accepts ratios down to 0.75 at a higher rate, and a no-ratio DSCR loan skips the ratio with about 25% down.

How do South Carolina property taxes affect a DSCR loan?

Taxes are part of the payment the rent has to cover. South Carolina’s average effective rate is about 0.49% for owner-occupied homes, per the Tax Foundation, and rentals don’t get owner-occupant breaks, so an investor’s bill is usually higher. See the property tax section above for how South Carolina assesses rentals.

What share of South Carolina households rent, and how much have home prices risen?

About 28.1% of South Carolina households rent their home (U.S. Census Bureau, 2020–2024), and the median gross rent is $1,180 a month. FHFA data show South Carolina home prices rose 45.4% in the five years to mid-2026, versus 33.4% nationally.

Can I use Airbnb income on a South Carolina DSCR loan?

Yes, if the property can legally operate as a short-term rental under local rules. Lenders use 12 months of platform payouts, an AirDNA projection (often counted at 75–80%), or fall back to the appraiser’s long-term rent. Check the city rules above before you buy.

Can I close a South Carolina DSCR loan in an LLC?

Yes. DSCR loans close in an LLC or corporation with you as personal guarantor. If your LLC was formed in another state, South Carolina may require it to register as a foreign LLC before it holds property there; confirm with your attorney or CPA.

Do DSCR loans have prepayment penalties?

Usually. Most of our DSCR loans carry a one-year prepayment period. A no-prepay loan is available at a slightly higher rate or more in fees, and a longer prepayment period can lower your rate or fees.

How long does a South Carolina DSCR loan take to close?

Often about 18 days once your documents are complete, though appraisal timing varies. The appraisal with the rent schedule is usually the longest step, and closings can be done remotely or with a mobile notary.

DSCR Loans in South Carolina