The Best DSCR Lenders in South Carolina (Rental Property Loans) [2025 Guide]

South Carolina’s population growth, robust tourism industry and pro‑business climate have turned cities like Charleston, Columbia and Greenville into hotbeds for rental property investment. At the same time, DSCR loans have emerged as a preferred financing tool for investors seeking to scale their portfolios without traditional income documentation. In 2025 the average monthly rent in South Carolina sits at $1,858, while two‑bedroom units average $1,500. The Fair Market Rent for a two‑bedroom apartment is $1,339 and for a one‑bedroom apartment is $1,173, meaning South Carolina rents are nearly 20 % lower than the national average. Despite affordability relative to coastal markets, more than half of South Carolinian rentals cost less than $1,000, and only about 8 % exceed $2,000. This mix of low purchase prices and rising rents creates attractive DSCR opportunities.

This guide explores the DSCR lending landscape in South Carolina. It explains DSCR basics, outlines state‑specific requirements, ranks lenders with Select Home Loans at number 1, and provides actionable advice for applying and improving DSCR. Whether you operate long‑term rentals in Greenville or vacation rentals in Myrtle Beach, DSCR financing can help you expand your holdings.

DSCR Fundamentals

Debt Service Coverage Ratio (DSCR) is calculated by dividing a property’s net operating income by its annual debt service. A DSCR of 1.0 means the property breaks even; lenders prefer a cushion of 1.25 or more. DSCR loans are geared toward non‑owner‑occupied investment properties and allow borrowers to qualify based on rental income alone. Because they omit personal income and debt‑to‑income ratios, DSCR loans are popular among self‑employed investors and those seeking to expand portfolios rapidly.

South Carolina DSCR Requirements and Benefits

State‑specific DSCR requirements align with national norms but include some unique considerations due to the state’s coastal geography and insurance requirements.

• DSCR Threshold: A good DSCR is above 1.0. Griffin Funding’s South Carolina program notes that while DSCR >1 is considered good, the lender will still finance properties with DSCR below 1.0 if borrowers provide reserves. Newfi finances properties with DSCR as low as 0.8.
  
• Credit Score: Many lenders require a minimum FICO of 620–640. Griffin Funding accepts credit scores as low as 620, while Newfi requires at least 640. Higher scores may qualify for lower rates.
  
• Down Payment & LTV: Down payments in South Carolina start at 20 %. Griffin Funding notes that a 20 % down payment can secure DSCR financing, while Newfi offers similar terms. LTV ratios cap around 80 % for purchases and 75 % for cash‑out refis.
  
• Loan Amounts: Loan amounts commonly start at $75k and can go up to $5 million or more for high‑end properties. National lenders will lend up to $20 million for large portfolios.
  
• Property Types: DSCR loans fund single‑family homes, condos, townhomes and small multifamily buildings. Both long‑term rentals and short‑term rentals (e.g., Airbnbs in Myrtle Beach) are eligible.
  
• Insurance & Reserves: Coastal counties require flood and wind insurance. Lenders may require 6–12 months of reserves for properties with DSCR below 1.0, though cash‑out refinances may not require reserves. Investors must show proof of hazard insurance and sometimes hurricane coverage.
  

Benefits for South Carolina Investors

South Carolina’s moderate home prices and growing tourism market make it easy to find properties with DSCR above 1.0. DSCR loans allow investors to buy multiple properties without income documentation, take cash out of existing rentals, and close loans in LLCs. The ability to choose 15‑, 30‑ or 40‑year terms or interest‑only payments, as offered by Newfi, helps investors tailor cash flow to their strategy. With loan amounts up to $5 million, DSCR financing supports both small landlords and institutional investors.

Ranking the Best DSCR Lenders in South Carolina

1. Select Home Loans (Top Overall)

Website: SelectHomeLoans.com

Phone: 888-550-3296

Select Home Loans tops our list because it combines flexible underwriting with deep knowledge of South Carolina markets. The lender accepts DSCR ratios down to 0.8 for qualified borrowers, though ratios above 1.0 receive the best rates. Minimum credit score is 620, and down payments start at 20 %. Select Home Loans offers loan amounts from $75k up to $5 million, with 30‑year fixed, 30‑year interest‑only and 40‑year amortisation options. The company allows short‑term rentals and finances properties held in LLCs. Its South Carolina team understands coastal insurance requirements, county property taxes and seasonal rent variations, making Select Home Loans a reliable partner for investors across the Palmetto State.

2. Griffin Funding

Griffin Funding’s South Carolina DSCR program emphasises flexibility. Borrowers can qualify with a DSCR below 1.0 by providing reserves; a DSCR above 1.0 is considered good. The minimum down payment is 20 %, and credit scores as low as 620 are accepted. Loan amounts reach up to $5 million, and the lender permits unlimited properties and cash‑out refinances. Griffin Funding’s willingness to work with lower DSCRs makes it attractive for investors acquiring properties with seasonal income variations.

3. Newfi

Newfi offers DSCR loans in South Carolina with DSCR as low as 0.8, credit score minimum 640, and down payments starting at 20 %. Borrowers can choose from 15‑, 30‑ and 40‑year terms or opt for interest‑only payments. Newfi lends on single‑family rentals, duplexes, four‑plexes, condos and short‑term rentals. Because Newfi allows lower DSCR thresholds, it is a good choice for investors purchasing properties with developing cash flow.

4. Visio Lending

Visio Lending focuses exclusively on DSCR loans for single‑family rentals nationwide. Its South Carolina program emphasises the state’s strong rental demand and offers flexible underwriting. Visio lends up to 80 % LTV, with DSCR thresholds around 1.0. The lender finances loans as low as $75k and up to $1.5 million. Visio is particularly attractive for investors in tourist markets like Myrtle Beach, where their short‑term rental expertise helps investors navigate seasonal occupancy.

5. CoreVest

CoreVest provides long‑term DSCR loans with DSCR down to 1.0, 30‑year fixed or adjustable rates, and LTV up to 80 %. Loan amounts range from $75k to over $2 million. CoreVest will finance multiple properties under portfolio loans, making it a strong option for institutional investors or landlords with large holdings across South Carolina and other states.

6. Angel Oak Mortgage Solutions

Angel Oak offers DSCR loans up to $1.5 million with 30‑ or 40‑year amortisation and interest‑only periods. The lender accepts DSCR ratios around 1.0 and credit scores as low as 620. Angel Oak lends on both long‑term and short‑term rentals and allows borrowers to finance properties in LLCs. It’s a solid choice for investors who need flexible documentation and have medium‑sized loan needs.

7. Local Banks and Credit Unions

South Carolina’s community banks, such as South State Bank and First Citizens Bank, occasionally offer investor‑friendly portfolio loans similar to DSCR financing. These programs often require DSCR between 1.2 and 1.3 and down payments of 25 % or more. While interest rates can be competitive, underwriting may take longer. Local banks understand regional nuances like hurricane insurance requirements and may allow more flexibility on property condition or location.

8. Private & Hard Money Lenders

For investors needing rapid closing or financing on properties with DSCR below 1.0, private lenders offer an alternative. These lenders often base loans solely on asset value, charge higher rates (8–12 %) and points, and offer terms of one to three years. While expensive, hard‑money loans can act as bridge financing until the property is stabilised and can qualify for a DSCR loan. Investors should have an exit strategy to refinance into a lower‑cost DSCR loan once cash flow improves.

Choosing a South Carolina DSCR Lender

When selecting a DSCR lender, match the lender’s DSCR threshold, credit score requirement and loan amount to your property’s profile. If your DSCR is near 0.8, you may need to work with Newfi or Select Home Loans. For DSCR below 1.0 due to seasonal variations, Griffin Funding’s reserve requirements may provide a path. Investors with high‑cash‑flow properties may secure better rates from lenders like CoreVest or local banks. Also consider whether you need long amortisation (e.g., 40‑year) or interest‑only periods. Finally, evaluate each lender’s experience in coastal markets; local knowledge helps navigate flood insurance, hurricane deductibles and county permitting.

DSCR Loan Application Process for South Carolina

1. Pre‑screen properties and DSCR. Research local rents (average two‑bedroom rent of $1,500 and FMR of $1,339) and calculate the DSCR by dividing NOI by annual debt service. Aim for a ratio above 1.0.
   
2. Collect documents. Gather leases, or for a new purchase, have the appraiser produce a rent schedule. Prepare proof of funds, credit report, entity documents and hazard/flood insurance quotes. Coastal properties require flood and hurricane insurance.
   
3. Contact lenders. Reach out to Select Home Loans, Griffin Funding, Newfi and at least one local bank. Provide property details, DSCR estimates, and your credit profile. Obtain preliminary quotes and compare interest rates, DSCR thresholds, fees and closing timelines.
   
4. Apply formally. Submit a completed application, appraisal deposit and requested documents. The lender orders an appraisal and may require a rent survey. Respond promptly to underwriting inquiries.
   
5. Review approval and close. Once approved, review the loan terms (rate, DSCR conditions, reserves). Ensure you understand any prepayment penalties or yield maintenance. Close at a title company and fund the loan. After closing, manage the property to maintain or improve DSCR. Keep reserves as required and update insurance annually.
   

Improving DSCR for South Carolina Rentals

To improve your property’s DSCR, increase revenue by upgrading amenities, adding pet fees or offering furnished rentals to tourists. Reduce expenses by shopping insurance quotes, appealing property taxes and switching to energy‑efficient appliances. Refinance high‑interest debt on other properties to reduce overall debt service. For short‑term rentals, optimise nightly rates and occupancy through dynamic pricing. If your property still falls short of DSCR requirements, consider making a larger down payment or partnering with investors to reduce the loan balance.

Another avenue for boosting DSCR in South Carolina is to capitalise on the state’s demographic and economic trends. Enrollment growth at universities such as Clemson, the University of South Carolina and Coastal Carolina continues to drive demand for student rentals. Purpose‑built student housing and single‑family homes near campus can command premium rents and achieve DSCR well above 1.0. Investors should also consider converting long‑term rentals into mid‑term furnished units aimed at travel nurses and remote workers flocking to Charleston and Greenville. South Carolina’s property tax rates vary widely by county; investing in counties with lower tax rates can reduce operating expenses and boost DSCR. Local governments offer incentives and tax credits for rehabilitating historic homes – renovating a dilapidated house in Columbia’s historic district or downtown Spartanburg may allow landlords to charge higher rents and claim credits. These strategies underscore that a proactive, locally informed approach can help investors continually strengthen DSCRs while enhancing property values and community character.

Conclusion

South Carolina’s affordable housing market and growing rental demand make it an excellent destination for DSCR investors. With an average rent of $1,858 and FMR around $1,339, many properties can achieve DSCR above 1.0, qualifying them for favourable financing. DSCR lenders such as Select Home Loans, Griffin Funding and Newfi provide flexible products with DSCR thresholds ranging from 0.8 to 1.25, allowing investors to scale portfolios in Charleston, Columbia, Greenville and coastal communities. By understanding state‑specific requirements, comparing lenders and following a structured application process, investors can leverage DSCR loans to grow wealth in the Palmetto State.