Warm weather, beautiful Atlantic beaches, and true Southern hospitality: there's so much to love about South Carolina. For real estate investors specifically, the piping-hot tourism economy and housing crunch make an investment property here a no-brainer.

Investing in real estate with a debt service coverage ratio loan has never been easier through Visio Lending. Because we rely solely on the property's cash flow to determine your eligibility, you don't need to provide tax returns, pay stubs, or your own debt-to-income ratio to qualify for a DSCR loan; this makes it simple to access the funds you need to buy an excellent investment property in the Palmetto State.

If you're ready to become one of the many real estate investors with an eye on South Carolina, contact us today to learn how DSCR loans make it to jump on the hottest investment opportunities throughout the state.




Why Buy Investment Property in South Carolina?

A diversified investment portfolio is a healthy one, so many investors have found themselves searching beyond the more well-known markets for promising rental properties - and many have found themselves curious about South Carolina, home to many highly underappreciated investment opportunities.

Thriving Economy

While the entire US economy is expected to slide into recession in 2023, South Carolina is doing better than most states on nearly every metric, including employment and economic growth. The state has sprung back from the Covid-19 pandemic by recovering all jobs lost in 2020, and economic diversification will prove to be a huge boon for the region.

South Carolina's unemployment rate is lower than the national average, while its tourism sector has rebounded significantly; only manufacturing regions tend to trail behind, but an incredible $11 billion in private sector investments to boost clean energy generation has helped to dramatically uplift its productivity. 

Growing Population

The state's population growth is unprecedented: it's the third-fastest growing state in the nation, adding 89,368 more residents in 2022. Most of these new residents come from neighboring states, looking for the relaxed lifestyle that South Carolina promises and its birth rate is slightly higher than the US average; these young families need places to live, which is part of the reason that the housing market is quite tight in the state.

Ranked among the top ten housing markets in the nation, South Carolina's prices rose by a shocking 19.2% over the past year, meaning it's number two for increases. Incredibly low inventory and rising costs mean that rental properties have become an attractive option for South Carolinians, which suggests excellent potential rental income for investors.

Great Tax Breaks

One of the reasons that real estate investors love DSCR loans is because they can be obtained under a corporate name - which is great news for those looking to buy investment properties in South Carolina, which has excellent corporate tax breaks. Many companies in the Palmetto State can obtain a Corporate Tax Credit, eliminating 50% of their corporate tax liabilities for a certain number of years. Add this to their low income tax rate, and you have a golden opportunity to buy rental properties with a DSCR loan.


Why Are DSCR Loans Good for Investment Properties in South Carolina?

Because a DSCR loan hinges primarily on the property's potential rental income, there is far less paperwork when compared to traditional mortgage loans, which require a detailed analysis of the borrower's personal income before they can be approved.

This can make it difficult for those with a unique financial situation, like the self-employed, to obtain a traditional loan, but that's not a problem with DSCR loans. This is why so many entrepreneurs greatly prefer to apply for a DSCR loan when seeking to add investment properties to their real estate portfolio.

Speedy Process

By focusing solely on the cash flow generated by the investment property, DSCR lenders do away with much of the paperwork necessary for conventional mortgages. This means you can get approved far faster, giving you an edge in South Carolina's tight real estate market.

No Personal Income Verification Required

To qualify for a DSCR loan, you don't need to prove your income through bank statements or other documents; the borrower's capacity to cover the loan payments is determined almost entirely by the property's cash flow instead.

Minimum and Maximum DSCR Loan Limits in South Carolina

The minimum loan amount is between $100,000 and $150,000, while the maximum loan amount is $5 million. This gives you plenty of room to work with when identifying promising rental properties, especially as the average home value in South Carolina is $287,618.



Requirements for a DSCR Loan: South Carolina

DSCR loans require slightly different information than traditional mortgages, so it's important to understand how securing financing works for a DSCR loan.

Minimum Credit Score

While a DSCR loan doesn't require you to provide personal income information, you will need to prove your creditworthiness. The minimum credit score in South Carolina specifically is around 640, but you should strive for a 680 or higher, as this will provide you with more competitive interest rates.

Debt Service Coverage Ratio

To calculate DSCR, you divide the property's income by PITIA (principal and interest payments, taxes, insurance, and association dues), which is the total debt service. The minimum DSCR ratio is typically 1.2, but most DSCR lenders prefer a DSCR ratio of 1.25 or more.

Property Appraisal and Rent Schedule

Most DSCR lenders require that you submit an appraisal of the property to ensure that its value matches the loan amounts requested. You will also need to prove the property's ability to generate sufficient cash flow through a rent schedule, which verifies the fair market rental income that can be expected. If your rental property has a tenant history, you'll provide previous lease agreements that can show the gross rental income.

Loan-to-Value Ratio

For DSCR mortgage loans, you'll need a maximum Loan-to-Value Ratio of 80%, though most DSCR lenders prefer 75%. This will also identify what percentage you'll need to provide as a down payment.

Down Payment

Once you have received loan approval, you'll provide a down payment of at least 20%, but typically 25%. You will also pay closing costs at this time.

Prepayment Penalty

Lenders who offer DSCR loans will impose a prepayment penalty if you make loan payments ahead of time, usually on a "step down" schedule of percentages based on the date of loan approval; for example, if you pay your mortgage loan off in the first year, you'll have a 5% prepayment penalty. 



Hottest Markets for DSCR Loans in South Carolina

South Carolina-1

When it comes to building your real estate portfolio, the entire Palmetto State is incredibly promising, but these are some of the best markets for investment properties based on expected rental income, economic growth, and rental rates.

📍 Charleston 

One of the largest cities in South Carolina, Charleston has a fun vibe that's popular with both tourists and residents alike. It's quite pricey to buy property here, with average home values being around $519,979. Across all residential property types, rental income is about $1,737. Office space is relatively affordable at $28 per square foot, but a retail property's income is truly phenomenal at $39.43 per square foot.

📍 Columbia

The state capital Columbia is home to the largest US Army installation for combat training, meaning there is a large population of young families looking for dining and entertainment. Despite rental income being relatively competitive compared to Charleston at an average of $1,525 across all types, home values are much lower: single-family houses cost just $258,063. Commercial space is quite affordable at an average of $19.75 per square foot for both retail and office.

📍 Greenville

Greenville is a college town with truly beautiful waterfalls and parks that bring in locals and tourists alike. It's slightly more expensive than Columbia, with an average property value of $296,038, but rental income is also higher at an average of $1,750 across all residential home types. Retail and office rental properties make about the same, averaging $25.14 per square foot between them.

📍 Myrtle Beach

If you're looking at short-term rental properties, Myrtle Beach is your best bet: vacation house rental property can bring in an amazing $461 per night, despite the house value being only a bit above Greenville at $302,303. Long-term rentals provide approximately $1,900 per month, while retail space makes $18.08 per square foot.


Closed DSCR Loans South Carolina

Check out some of Visio Lending's recently closed DSCR loans in South Carolina.


Myrtle Beach Condo


Myrtle Beach, SC

  • $292,500 Loan Amount
  • Purchase
  • STR
  • DSCR: 1.15
Columbia DSCR Loan


Columbia, SC 

  • $382,500 Loan Amount
  • Rate & Term Refinance
  • STR
  • DSCR: 1.09
Charleston LTR


Charleston, SC

  • $198,750 Loan Amount
  • Cash-Out Refinance
  • LTR
  • DSCR: 1.10

Frequently Asked Questions

Net operating income refers to your overall profit after subtracting operating expenses, and it identifies your property's cash flow. To calculate this, you find the sum of your gross operating income, then subtract your mortgage loan payments and other expenses.




A cash-out refinance is used to obtain liquid assets; essentially, you are financing to draw money out of the property rather than purchase one.

To improve your property's ability to finance the mortgage loan, you can command higher rents through improvements and enticements like waived pet fees or in-unit washers and dryers.

Investment properties like rental condos, vacation rentals, office spaces, hotels, and restaurants are all eligible for a DSCR loan in South Carolina. Because these are investment loans, an owner-occupied property is not eligible; you would need to seek a conventional mortgage instead.

Visio Lending finances single family rentals, including vacation rentals.

South Carolina map

Our DSCR Loans in South Carolina have:

  • · Full 30 year terms, no balloons for rental residential properties

  • · The ability to finance in an LLC

  • · No tax documents or personal income verification

  • · Real estate investor-friendly loan programs

  • · Interest only loan options


Contact Us to Start Your Loan