DSCR loans in South Carolina
A Debt Service Coverage Ratio Loan (DSCR ) helps you buy or refinance a South Carolina rental property by qualifying on the property’s income — not your tax returns, W-2s, or personal debt-to-income.
Andes Mortgage is a mortgage broker that offers a large portfolio of DSCR loans across South Carolina — from Charleston and Greenville to the Grand Strand.
For investors looking for value, South Carolina ranks among the lowest-property-tax states in the country — We break down everything you need to know about DSCR loans in South Carolina and don’t miss our DSCR calculator to help you run numbers on your deal.
- No tax returns · no personal DTI
- From 640 credit scores
- Business purpose
- Below-1.0 DSCR options
What is a South Carolina DSCR loan?
DSCR stands for debt-service coverage ratio — the property’s monthly rent divided by its full monthly payment (principal, interest, taxes, insurance, and any HOA, together called PITIA).
A DSCR of 1.0 means rent exactly covers the payment; above 1.0 the property runs a surplus. The reason South Carolina investors reach for this loan is simple: underwriting looks at the property, not you. No tax returns, no pay stubs, no personal debt-to-income calculation — which matters most for self-employed investors, investors who write off heavily, and anyone scaling past the property caps conventional financing imposes.
Because it’s a business-purpose loan, a DSCR mortgage can close in an LLC, and there’s no cap on how many you hold — the whole point for an investor building a South Carolina rental portfolio across Charleston, Greenville, and the coast.
Example: A single-family home in Greenville rents for $1,850/mo and the total house payment is $1,500/mo = 1.23 DSCR. The property covers its own debt with room to spare.
DSCR loans take into account the rental income and the property’s loan payment plus taxes, insurance and HOA (if any).
Who South Carolina DSCR loans fit
Conventional lending can be problematic for real estate investors as they require tax returns and personal DTI to qualify. Thus, DSCR loans solve this issue that plagues those who want to grow a portfolio of rental properties. DSCR loans skip personal income and debt-to-income and focuses on the asset instead.
- Business owners, self-employed and 1099 contractors
- Self-employed borrowers who write off heavily against income, or haven’t filed yet
- Out-of-state investors buying into Charleston or Greenville who want to close in an LLC
- Investors scaling past the ten-property limit that conventional financing caps you at
- Buyers targeting non-warrantable condos that conventional lenders decline outright
Want to know if DSCR is a good fit for you or see what you qualify? Take our easy qualifier Quiz, takes less than 60 seconds ->
Andes Mortgage’s DSCR Loan Requirements in South Carolina
Here’s the shape of what we can do on a South Carolina DSCR loan. These are typical ranges across our investor lending shelf — your exact terms depend on the property, your credit, and the loan size.
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Parameter
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Andes Mortgage South Carolina DSCR Guidelines
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Minimum credit score
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We work with as low as 640 credit score
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Max LTV — purchase (DSCR ≥ 1.0)
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Up to 85% for credit scores >700
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Max LTV — cash-out refinance
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Up to 75%
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DSCR 0.75–0.99 (reduced-ratio)
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Available — expect roughly a 5–10% LTV reduction vs. standard
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DSCR below 0.75 / no-ratio
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Available — typically to ~60–70% LTV at a higher credit score
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Loan amounts
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~$100K to $2.5M (minimum rises to ~$200K on sub-1.0 DSCR)
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Reserves
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3 months PITIA up to ~$1M; 6 months above ~$1M or on sub-1.0 DSCR
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Mortgage / rental history
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0x30x12 typical (no 30-day lates in 12 mo.)
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Property types
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SFR, PUD, townhome, 2–4 units, condos, and non-warrantable condos
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Rural property
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Allowed with up to 65% LTV
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Occupancy
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Business purpose / investment only
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Guidelines last verified: July 2026. Ranges reflect current wholesale investor guidelines and may change without notice.
How Andes Mortgage leads in South Carolina DSCR loans: As a South Carolina mortgage broker, we have a deep partnership with over 45 different Non-QM and DSCR lenders in South Carolina and nationwide. We are not bound by one set of guidelines – we are extremely flexible and this is one of the reasons why our clients love working with us on their investment property loans.
South Carolina DSCR Loans under 1.0 ratio
A DSCR under 1.0 happens when the property is unable to cover its own payment on paper. In other words, the property loses money every month.
This is a situation that some investors may find themselves in – whether it’s because they rent the property to multiple tenants and DSCR loans do not allow boarder income, a recent vacancy or a sudden tax or insurance hike obliterates the cash flow.
Either way, a DSCR under 1.0 — does not get rejected. It moves to a different tier of the same program with a lower loan-to-value. There is no DSCR floor with Andes Mortgage.
The rent covers the payment. You’re on the main program — best LTVs, widest credit range, lowest pricing.
The rent falls a little short. Still very financeable — expect roughly a 5–10% LTV reduction (a bit more down) in exchange for the lower ratio.
Even a property that doesn’t cash-flow on paper can be financed through a no-ratio structure — typically to ~60–70% LTV with a higher credit score.
If your South Carolina rental property is suddenly losing money every month and the DSCR is under 1, we place it in a different tier — not deny it. That’s exactly what we price out for you. And in South Carolina, getting the 6% investor tax right up front is often the difference between a deal that pencils at 1.0 and one that quietly slips below it. See how below-1.0 DSCR financing works →
South Carolina’s 4% vs. 6% property tax — and what it does to your DSCR
South Carolina ranks among the lowest-property-tax states in the country — but that ranking reflects owner-occupied homes, which the state treats very differently from rentals. Two rules do the damage for investors:
1. The assessment ratio. Owner-occupied primary residences are assessed at a 4% ratio; second homes, rentals, and investment property are assessed at 6% — 50% more taxable value on the identical house.
2. Act 388. Since 2006, owner-occupied homes are exempt from the school-operating millage — one of the largest pieces of the tax bill. Rentals are not; they pay it in full.
Stack the two together and, per a Lincoln Institute analysis, an SC rental’s property tax runs about 3.5× the owner-occupied bill on an identical property — roughly $4,131 a year versus $1,213 in the same jurisdiction. For a DSCR investor that’s not trivia: property tax is the “T” in PITIA, the denominator of your ratio. Underwrite the 4% headline number and your DSCR looks fine — the real 6% number can push the same deal under 1.0.
The same $300,000 rental, two tax assumptions — 25% down, a $225,000 loan, 30-year DSCR at an illustrative 7.8% rate, so principal & interest (about $1,620/mo) and insurance (about $150/mo) stay constant. Only the tax line moves:
| “Low-tax SC” assumption (4% owner rate) | What your rental actually pays (6% + full millage) | |
|---|---|---|
| Effective property tax | ~0.4% | ~1.4% (≈3.5×) |
| Property tax / mo | $100 | $350 |
| Full PITIA / mo | $1,870 | $2,120 |
| DSCR at $2,000 rent | 1.07 — looks like standard terms | 0.94 — actually reduced-ratio |
Same house, same rent — the only thing that changed is whether you used the owner-occupied tax rate or the real investor rate. Get it wrong and a deal you underwrote as a clean 1.07 shows up at closing as a 0.94 that needs more money down. That single line is the most important — and most overlooked — number in South Carolina DSCR underwriting.
SC assessment ratio jumps from owner-occupied to investment property
An SC rental’s property tax vs. an identical owner-occupied home (Lincoln Institute)
Actual annual tax on the same property — owner-occupied vs. rental
What pricing in the real 6% tax does to DSCR on a $2,000-rent deal
Where Andes comes in
Most out-of-state investors — and plenty of online calculators — plug in South Carolina’s owner-occupied tax rate and get a DSCR that looks better than the deal really is. We underwrite your quote at the correct 6% investment ratio with full school-operating millage from the start, so the ratio you’re shown is the ratio you’ll actually carry — no surprise at the closing table that turns a standard-terms deal into a reduced-ratio one.
This is general education on South Carolina property taxes, not tax or legal advice — assessment ratios, millage, and the owner-occupied exemption are set at the county level, change over time, and a property’s status can shift at point of sale. Confirm the exact figure with the county assessor.
Run your own numbers in the DSCR calculator below.
South Carolina markets allow different strategies for investors
South Carolina isn’t one rental market — it’s several, and DSCR gets used differently in each. The strategy you’re running should drive the property you buy and the tier you qualify under.
Charleston & the Lowcountry — the marquee market
- A diverse, resilient economy — Boeing, Mercedes-Benz Vans, the Port of Charleston, and a growing tech scene (“Silicon Harbor”) drive deep tenant demand across the Lowcountry.
- Strong long-term rental demand plus heavy tourism — though the City of Charleston restricts short-term rentals by zone, so many investors run these as long-term or workforce rentals.
The Upstate & Midlands
- Greenville — the Upstate’s fast-growing hub, powered by BMW, Michelin, and a revitalized downtown; strong long-term and build-to-rent demand.
- Spartanburg — the BMW manufacturing corridor with lower entry prices — bread-and-butter cash-flow SFR.
- Columbia — the state capital, the University of South Carolina, and Fort Jackson give a steady student, government, and military tenant base.
The coast — vacation-rental country
- Myrtle Beach & the Grand Strand — one of the largest short-term-rental markets in the country, tourism-driven (see STR terms below).
- Hilton Head — premium resort vacation rentals in Beaufort County, with high nightly rates and strong seasonal demand.
What makes South Carolina favorable for investors
Fast population growth
South Carolina is one of the fastest-growing states in the country — Sun Belt in-migration and retiree demand keep rental occupancy high and rents climbing, supporting the income your DSCR is built on.
A diverse manufacturing & port economy
BMW, Boeing, Mercedes-Benz, Michelin, Volvo, and the Port of Charleston anchor a resilient, multi-sector job base across the Upstate, Midlands, and Lowcountry — tenant demand that doesn’t hinge on any single employer.
Affordable entry prices
South Carolina’s median home value (about $298,000) means smaller loans and lower PITIA than pricier coastal Sun Belt metros — often the difference that keeps a deal at or above 1.0 once the real tax is priced in.
Three markets, one state
The Lowcountry’s port-and-manufacturing economy, the Upstate’s BMW/Michelin corridor, and the Grand Strand’s vacation-rental engine give SC investors three distinct demand drivers — long-term, workforce, and short-term — to build a DSCR portfolio around.
Property types we finance
Single-family & PUD
The core of most South Carolina DSCR portfolios — detached SFR and planned-unit developments across Charleston, Greenville, and Columbia.
2–4 units & townhomes
Small multifamily and townhomes for stronger blended cash flow.
Condos & non-warrantable
Warrantable and non-warrantable condos both financeable — useful for Myrtle Beach, Hilton Head, and downtown Charleston inventory.
Multifamily 5-9 units
Small scale multifamily properties can close under our commercial DSCR guidelines
Note: Our South Carolina DSCR loan allows rural properties too but capped at 65% LTV. Not sure a specific address qualifies? Run Mortgage Match and we’ll confirm before you’re under contract.
Financing short-term & vacation rentals on the South Carolina coast
Myrtle Beach is one of the largest vacation-rental markets in the country, and Hilton Head’s resort demand runs strong through the season. A DSCR loan is the standard way investors finance these properties: it’s business-purpose and qualifies on the property’s rental income, so a beach condo or vacation home held in an LLC is a natural fit.
The South Carolina STR markets
- Myrtle Beach & the Grand Strand (Horry County) — the state’s biggest STR market by far, with thousands of active listings and tourism-driven nightly rates.
- Hilton Head Island (Beaufort County) — premium resort inventory with high daily rates and strong seasonal occupancy.
- Charleston — huge tourism demand, but the city restricts short-term rentals by zone — confirm a parcel’s eligibility before you underwrite nightly income.
How we finance a South Carolina STR
- Stricter than long-term — expect a higher minimum DSCR (around 1.15), a higher FICO, and an LTV reduction versus a standard rental.
- Income from STR data or history — qualifying rent comes from AirDNA, short-term market data or the property’s own 12-month operating history, not a long-term lease.
- Plan for the off-season — coastal seasonality can pull DSCR below 1.0 in slower months, exactly where the reduced-ratio and no-ratio tiers earn their keep.
Permitting varies by municipality — confirm the exact parcel. Myrtle Beach requires business licensing and accommodations-tax compliance, the City of Charleston restricts STRs by zone (among the stricter markets in the state), and Hilton Head and Beaufort County set their own rules — some residential zones can’t operate an STR at all. Verify the specific parcel’s STR status before you buy or underwrite nightly income. We’ll help you pressure-test the numbers, but the permit is yours to confirm.
Run a coastal property’s numbers in the DSCR calculator below, or see how short-term rental financing works in our Airbnb & STR loan guide.
South Carolina DSCR calculator
Enter the property’s rent and payment. We’ll tell you the DSCR, which tier you land in — and which constraint is limiting your deal. No email required to see your result.
Frequently asked questions
Can I get a DSCR loan in South Carolina with a 640 credit score?
Yes. Our South Carolina DSCR program starts as low as 640. Your credit score drives your maximum loan-to-value — the strongest terms, including up to 85% LTV on a purchase, are reserved for scores above 700 — but 640 gets you in the door.
Why is my South Carolina rental taxed so much more than the “low” rate I’ve read about?
Because South Carolina’s low property-tax reputation applies to owner-occupied homes, not rentals. A primary residence is assessed at a 4% ratio and, under Act 388, is exempt from the school-operating millage. A rental or investment property is assessed at 6% and pays that millage in full — so per a Lincoln Institute analysis it runs about 3.5× the owner-occupied bill on an identical property (roughly $4,131 vs. $1,213 a year). Property tax is the “T” in PITIA, so that higher figure directly lowers your DSCR — which is why we underwrite your quote at the real 6% rate up front. This is general education, not tax advice; confirm the exact figure with the county assessor.
What’s the maximum LTV on a South Carolina DSCR loan?
Up to 85% on a purchase when the DSCR is 1.0 or higher and your credit score is above 700, and up to 75% on a cash-out refinance. Reduced-ratio and no-ratio deals (DSCR under 1.0) carry lower LTV caps — roughly a 5–10% reduction in the 0.75–0.99 band, and typically 60–70% below 0.75.
My South Carolina rental doesn’t cover its payment. Am I disqualified?
No. There’s no DSCR floor with Andes. A ratio between 0.75 and 0.99 moves to a reduced-ratio tier with a modest LTV reduction; below 0.75, a no-ratio structure qualifies you on down payment and credit instead of cash flow. In South Carolina, pricing the correct 6% investor tax in from the start is often what keeps a borderline deal on standard terms rather than dropping it a tier.
Can I close a South Carolina DSCR loan in an LLC?
Yes. DSCR loans are business-purpose loans and can close in an LLC, which is how most South Carolina investors hold rental property. There’s also no limit on the number of DSCR loans you can hold — a key advantage as you scale a portfolio across Charleston, Greenville, and the coast.
Can I use a DSCR loan for a Myrtle Beach or Hilton Head vacation rental?
Yes, under our short-term-rental guidelines. Myrtle Beach and Hilton Head are core SC vacation-rental markets, and a property held in an LLC is a natural DSCR fit. Expect stricter STR terms: a minimum DSCR around 1.15, a higher FICO, an LTV reduction, and qualifying income from AirDNA or a 12-month operating history. Confirm the parcel’s short-term-rental permitting with the municipality first — the City of Charleston in particular restricts STRs by zone.
Which South Carolina markets work best for DSCR?
Charleston and the Lowcountry lead the marquee market (Boeing, Mercedes-Benz Vans, the Port of Charleston, and a growing tech scene). The Upstate — Greenville and Spartanburg, powered by BMW and Michelin — offers fast growth and affordable cash-flow SFR; Columbia adds a steady capital, university, and military base (Fort Jackson); and Myrtle Beach and Hilton Head anchor the coastal short-term-rental play.
Related resources
Our coverage of South Carolina — programs and market
Run your numbers before you purchase or if you are refinancing
See if your South Carolina deal qualifies
Start Mortgage Match and we’ll tell you which DSCR tier your property lands in and what you’d put down — no credit pull, no obligation. Hablamos español.
Andes Mortgage LLC · NMLS #2187991 · Equal Housing Lender. Licensed mortgage broker in South Carolina. DSCR loans are business-purpose loans for investment properties only. Figures shown are typical ranges from current wholesale lending guidelines as of July 2026 — not a single lender’s terms and not a commitment to lend. Program terms and eligibility vary by lender and are subject to change without notice.