How to Get a DSCR Loan in South Carolina: 2026 Complete Guide

South Carolina pairs a strong long-term rental story (Charleston, Greenville, Columbia) with one of the deepest STR markets on the East Coast (Myrtle Beach, Hilton Head, the Lowcountry). A DSCR loan is the primary tool for both investor profiles, with in-state and out-of-state DSCR activity accelerating through 2025–2026.

This guide explains how DSCR loans work in South Carolina, current 2026 rates, the strongest sub-markets, and STR licensing notes by jurisdiction.

5.75%

Rates From

85%

Max LTV

620+

Min Credit Score

$15M

Max Loan Amount

What Is a DSCR Loan?

A DSCR loan — Debt Service Coverage Ratio loan — qualifies the borrower based on the rental income of the subject property rather than personal income. The qualifying ratio is the property's gross monthly rent divided by its monthly debt obligations (PITIA: principal, interest, taxes, insurance, HOA).

DSCR Formula

DSCR = Gross Monthly Rental Income ÷ Monthly Debt Obligations

A 1.0 DSCR means the property breaks even. Higher ratios produce better pricing.

Because qualification is based on the property, DSCR loans require no W-2s, no tax returns, no employment verification, and no debt-to-income calculation.

Why South Carolina Is a Strong Market for DSCR Loans

South Carolina benefits from sustained population in-migration (one of the top five fastest-growing states for the past three years), an industrial expansion wave (BMW Spartanburg, Volvo Charleston, Boeing Charleston, Scout Motors), and landlord-friendly state law with no statewide rent control. The state's STR markets are well-developed but heavily ordinance-driven — Charleston city restricts STRs more tightly than the surrounding county.

Greenville-Spartanburg has emerged as one of the Carolinas' best cash-flow upstate markets, while the Charleston metro continues to combine appreciation with reasonable cash flow in outer suburbs (North Charleston, Goose Creek, Summerville).

DSCR Loan Requirements in South Carolina

      DSCR Loan Requirements — South Carolina
      Minimum credit score: 620 (best pricing at 740+)
Minimum DSCR: 0.75 (1.0+ preferred)
Maximum LTV: Up to 85% purchase / 75–80% cash-out refinance
Loan amount: $100,000 to $15,000,000
Property types: SFR, condo, 2–4 unit, 5+ unit multifamily, condotel
Loan terms: 30-year fixed, ARM options, interest-only
Borrower types: Individual, LLC, corporation, foreign national
Reserves: Typically 3–6 months PITIA

    

Top South Carolina Markets for DSCR Investors

Charleston Metro

Charleston peninsula commands premium pricing; cash flow concentrates in North Charleston, Goose Creek, Summerville, and Mount Pleasant outer ring. STR ordinance in the city is restrictive — verify permit transferability before contracting.

Greenville-Spartanburg

Upstate SC's cash-flow engine. SFR entry $180K–$320K, strong rents driven by BMW, Michelin, and Bosch employment. DSCRs 1.10–1.35 routine at 75% LTV.

Myrtle Beach & the Grand Strand

One of the highest-volume STR markets on the East Coast. Strong summer revenue concentration; AirDNA projections used for our STR DSCR program. Condotel financing available.

Columbia

University of South Carolina drives steady student rental demand. SFR cash flow strong; multi-unit demand near campus consistently absorbed.

DSCR Loan Rates in South Carolina — 2026

      2026 DSCR Rate Ranges — South Carolina
      Credit 780+ / LTV under 65%: Rates from ~5.75%
Credit 720–779 / LTV 65–75%: 6.25–7.00%
Credit 660–719 / LTV 75–80%: 7.00–7.75%
Credit 620–659 / LTV 80–85%: 7.75–8.50%

    

See If You Qualify for a DSCR Loan in South Carolina

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How to Apply

Submit your inquiry. Property address, estimated rent, loan amount.
Pre-approval in 24–48 hours.
Close in 21–30 days. No tax returns or employment verification.

Frequently Asked Questions

Can I get a DSCR loan for a Charleston Airbnb? +

Yes — provided the property is legally permitted as an STR by the City of Charleston (or unincorporated Charleston County). The city has a more restrictive STR ordinance than surrounding jurisdictions. We qualify using AirDNA projected revenue.

Is Myrtle Beach a strong DSCR STR market? +

Yes. Myrtle Beach STR properties produce some of the strongest summer revenue concentrations on the East Coast. Our short-term rental DSCR program qualifies on full-year AirDNA projections, smoothing the seasonal swings.

What is the minimum credit score for a South Carolina DSCR loan? +

620 minimum; best pricing at 720+. Greenville and Columbia entry prices keep absolute loan amounts modest.

Are condotel DSCR loans available in Hilton Head or Myrtle Beach? +

Yes. We finance condotels in South Carolina under the DSCR program. Underwriting reviews HOA financials and STR ordinance compatibility.

Can foreign nationals get a DSCR loan for a South Carolina property? +

Yes. We close foreign national DSCR loans throughout South Carolina with significant activity in the Hilton Head and Charleston coastal markets.

Ready to Get a DSCR Loan in South Carolina?

Rates from 5.75%, scores from 620, no income docs required.

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DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548), a licensed mortgage broker. Informational only; not a loan commitment. Equal Housing Lender.