{"id":1517,"date":"2026-10-23T01:09:12","date_gmt":"2026-10-23T05:09:12","guid":{"rendered":"https:\/\/arvcalc.com\/blog\/?p=1517"},"modified":"2026-11-03T23:12:08","modified_gmt":"2026-11-04T04:12:08","slug":"south-carolina-dscr-loan-guide","status":"publish","type":"post","link":"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/","title":{"rendered":"South Carolina DSCR Loan Guide: Rates and Requirements (2026)"},"content":{"rendered":"<p>I have closed three DSCR loans on South Carolina properties \u2014 two in Greenville and one in Columbia. Each deal qualified differently despite using the same lender and same credit profile. The reason: South Carolina&#8217;s 6% investment property tax assessment and wildly different insurance costs between inland and coastal markets shift the PITIA calculation enough to move DSCR by 0.10-0.20 points. A deal that qualifies easily in Columbia at 25% down may require 30% down in Charleston purely because of the insurance premium difference.<\/p>\n<p>This <strong>South Carolina DSCR loan<\/strong> guide covers current rates, qualification requirements, how SC-specific costs affect your DSCR, and which markets qualify easiest. Check your property with the <a href=\"\/states\/south-carolina\/dscr-calculator\">South Carolina DSCR calculator<\/a> pre-loaded with SC tax and insurance data.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#South_Carolina_DSCR_Loan_Rates_2026\" >South Carolina DSCR Loan Rates (2026)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#How_DSCR_Works_The_SC-Specific_Calculation\" >How DSCR Works: The SC-Specific Calculation<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#SC_DSCR_Example_280000_Greenville_Rental\" >SC DSCR Example: $280,000 Greenville Rental<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#SC_Property_Tax_The_6_Assessment_Impact_on_DSCR\" >SC Property Tax: The 6% Assessment Impact on DSCR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#Insurance_Coastal_vs_Inland_DSCR_Impact\" >Insurance: Coastal vs Inland DSCR Impact<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#DSCR_by_South_Carolina_Market\" >DSCR by South Carolina Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#DSCR_Loan_Requirements_for_South_Carolina\" >DSCR Loan Requirements for South Carolina<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#5_Ways_to_Improve_Your_SC_DSCR\" >5 Ways to Improve Your SC DSCR<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#1_Increase_Down_Payment_to_30\" >1. Increase Down Payment to 30%<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#2_Buy_Inland_Not_Coastal\" >2. Buy Inland, Not Coastal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#3_Find_Above-Market_Rent\" >3. Find Above-Market Rent<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#4_Shop_Rates_Aggressively\" >4. Shop Rates Aggressively<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#5_Consider_ADU_or_Multi-Unit\" >5. Consider ADU or Multi-Unit<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#DSCR_vs_Conventional_for_SC_Investment_Property\" >DSCR vs Conventional for SC Investment Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#DSCR_Loan_Process_Timeline_in_South_Carolina\" >DSCR Loan Process Timeline in South Carolina<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#What_Can_Delay_Your_SC_DSCR_Closing\" >What Can Delay Your SC DSCR Closing<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#Closing_a_DSCR_Loan_in_South_Carolina\" >Closing a DSCR Loan in South Carolina<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/arvcalc.com\/blog\/south-carolina-dscr-loan-guide\/#Run_Your_SC_DSCR_Before_You_Apply\" >Run Your SC DSCR Before You Apply<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"South_Carolina_DSCR_Loan_Rates_2026\"><\/span>South Carolina DSCR Loan Rates (2026)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>South Carolina DSCR loan<\/strong> rates in mid-2026 range from 7.00% to 9.50% depending on three factors: your LTV (down payment), credit score, and the property&#8217;s debt service coverage ratio.<\/p>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>LTV<\/th>\n<th>DSCR 1.25+<\/th>\n<th>DSCR 1.0-1.24<\/th>\n<th>DSCR 0.75-0.99<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>70% (30% down)<\/td>\n<td>7.00-7.25%<\/td>\n<td>7.25-7.75%<\/td>\n<td>8.00-8.50%<\/td>\n<\/tr>\n<tr>\n<td>75% (25% down)<\/td>\n<td>7.25-7.50%<\/td>\n<td>7.75-8.25%<\/td>\n<td>8.50-9.00%<\/td>\n<\/tr>\n<tr>\n<td>80% (20% down)<\/td>\n<td>7.75-8.25%<\/td>\n<td>8.25-8.75%<\/td>\n<td>9.00-9.50%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>According to <a href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/what-is-a-debt-service-coverage-ratio-en-2121\/\" target=\"_blank\" rel=\"noopener\">CFPB guidance on debt service ratios<\/a>, these rates are consistent with national DSCR pricing \u2014 SC does not have a state-specific premium or discount. The variance comes from how SC&#8217;s operating costs (tax and insurance) affect your DSCR ratio, which determines which rate tier you qualify for. Compare DSCR vs conventional in our <a href=\"\/blog\/dscr-vs-conventional-loan\/\">DSCR vs conventional guide<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_DSCR_Works_The_SC-Specific_Calculation\"><\/span>How DSCR Works: The SC-Specific Calculation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>DSCR = Monthly Rent \/ Monthly PITIA. The lender divides your gross monthly rent by your total monthly payment (Principal + Interest + Taxes + Insurance + Association dues). If the result is 1.0 or higher, the property income covers the payment \u2014 and you qualify.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"SC_DSCR_Example_280000_Greenville_Rental\"><\/span>SC DSCR Example: $280,000 Greenville Rental<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Monthly rent:<\/strong> $1,400<\/li>\n<li><strong>Loan:<\/strong> $210,000 (25% down) at 7.25%<\/li>\n<li><strong>Monthly P&#038;I:<\/strong> $1,432<\/li>\n<li><strong>Monthly tax:<\/strong> $201 (0.86% investment rate on $280K \/ 12)<\/li>\n<li><strong>Monthly insurance:<\/strong> $150 ($1,800\/year inland)<\/li>\n<li><strong>Monthly HOA:<\/strong> $0<\/li>\n<li><strong>Total PITIA:<\/strong> $1,783<\/li>\n<li><strong>DSCR:<\/strong> $1,400 \/ $1,783 = <strong>0.79<\/strong><\/li>\n<\/ul>\n<p>At 0.79, this deal qualifies with some lenders but at a premium rate (8.50-9.00%). To improve it: put 30% down (reduces P&#038;I to $1,338, DSCR rises to 0.83) or find a property with $1,600\/month rent (DSCR jumps to 0.90). Run scenarios with the <a href=\"\/states\/south-carolina\/dscr-calculator\">SC DSCR calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"SC_Property_Tax_The_6_Assessment_Impact_on_DSCR\"><\/span>SC Property Tax: The 6% Assessment Impact on DSCR<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>South Carolina&#8217;s dual assessment system is the #1 SC-specific factor affecting <strong>South Carolina DSCR loan<\/strong> qualification. Owner-occupied homes are assessed at 4% of market value. Investment property is assessed at 6% \u2014 a 50% higher rate.<\/p>\n<p>On a $280,000 property:<\/p>\n<ul>\n<li><strong>Owner-occupied tax:<\/strong> $280,000 \u00d7 4% \u00d7 millage \u2248 $1,600\/year ($133\/month)<\/li>\n<li><strong>Investment tax:<\/strong> $280,000 \u00d7 6% \u00d7 millage \u2248 $2,408\/year ($201\/month)<\/li>\n<li><strong>Difference:<\/strong> $68\/month \u2014 drops DSCR by ~0.04 points<\/li>\n<\/ul>\n<p>When a seller provides their tax bill, it reflects the 4% owner-occupied rate. Your lender will use the 6% investment rate. If you submit the seller&#8217;s tax amount on your DSCR application, the lender will correct it \u2014 and your DSCR will drop. Always use the 6% rate from the start. The <a href=\"\/states\/south-carolina\/dscr-calculator\">SC DSCR calculator<\/a> applies this automatically.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Insurance_Coastal_vs_Inland_DSCR_Impact\"><\/span>Insurance: Coastal vs Inland DSCR Impact<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Insurance is the second major SC-specific variable. Inland markets (Greenville, Columbia, Spartanburg) average $1,500-$2,000\/year. Coastal markets (Charleston, Myrtle Beach) average $3,000-$4,500\/year because of hurricane and wind\/hail exposure.<\/p>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Market<\/th>\n<th>Insurance\/yr<\/th>\n<th>Insurance\/mo<\/th>\n<th>DSCR Impact vs $1,800 Baseline<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Columbia<\/td>\n<td>$1,600<\/td>\n<td>$133<\/td>\n<td>+0.01 (lower cost helps)<\/td>\n<\/tr>\n<tr>\n<td>Greenville<\/td>\n<td>$1,800<\/td>\n<td>$150<\/td>\n<td>Baseline<\/td>\n<\/tr>\n<tr>\n<td>Spartanburg<\/td>\n<td>$1,500<\/td>\n<td>$125<\/td>\n<td>+0.02<\/td>\n<\/tr>\n<tr>\n<td>Charleston<\/td>\n<td>$3,200<\/td>\n<td>$267<\/td>\n<td>-0.07<\/td>\n<\/tr>\n<tr>\n<td>Myrtle Beach<\/td>\n<td>$3,800<\/td>\n<td>$317<\/td>\n<td>-0.10<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>The Myrtle Beach-to-Spartanburg insurance spread is $2,300\/year \u2014 $192\/month. That $192 difference drops DSCR by 0.12 points. A deal that qualifies at 1.0 DSCR in Spartanburg may only hit 0.88 in Myrtle Beach on the same property type and rent level. Get real insurance quotes before submitting your <strong>South Carolina DSCR loan<\/strong> application \u2014 not statewide averages.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"DSCR_by_South_Carolina_Market\"><\/span>DSCR by South Carolina Market<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Market<\/th>\n<th>Median Price<\/th>\n<th>Median Rent<\/th>\n<th>DSCR at 25% Down<\/th>\n<th>DSCR at 30% Down<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Columbia<\/td>\n<td>$225,000<\/td>\n<td>$1,200<\/td>\n<td>0.94<\/td>\n<td>1.05<\/td>\n<\/tr>\n<tr>\n<td>Spartanburg<\/td>\n<td>$210,000<\/td>\n<td>$1,100<\/td>\n<td>0.92<\/td>\n<td>1.03<\/td>\n<\/tr>\n<tr>\n<td>Greenville<\/td>\n<td>$285,000<\/td>\n<td>$1,400<\/td>\n<td>0.86<\/td>\n<td>0.96<\/td>\n<\/tr>\n<tr>\n<td>Myrtle Beach<\/td>\n<td>$310,000<\/td>\n<td>$1,500<\/td>\n<td>0.82<\/td>\n<td>0.92<\/td>\n<\/tr>\n<tr>\n<td>Charleston<\/td>\n<td>$420,000<\/td>\n<td>$1,800<\/td>\n<td>0.75<\/td>\n<td>0.84<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>Only Columbia and Spartanburg break 1.0 DSCR at 30% down. Greenville is close at 0.96. Charleston and Myrtle Beach require either 35%+ down, above-market rent, or a significantly below-market purchase price to qualify. These numbers use SC investment tax (0.86%) and market-specific insurance \u2014 not generic estimates.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"DSCR_Loan_Requirements_for_South_Carolina\"><\/span>DSCR Loan Requirements for South Carolina<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Minimum DSCR:<\/strong> 1.0 for standard pricing. Some lenders accept 0.75 with higher down payment and rate premium.<\/li>\n<li><strong>Credit score:<\/strong> 640+ minimum. 720+ for best pricing tier.<\/li>\n<li><strong>Down payment:<\/strong> 20-25% typical. 15% available from some lenders with 1.25+ DSCR.<\/li>\n<li><strong>Reserves:<\/strong> 6-18 months PITIA depending on LTV tier. At 80% LTV: 12-18 months. See our <a href=\"\/blog\/rental-property-cash-reserves-guide\/\">cash reserves guide<\/a>.<\/li>\n<li><strong>Property types:<\/strong> SFR, 2-4 unit, condo (warrantable), townhome.<\/li>\n<li><strong>Seasoning:<\/strong> 3-6 months ownership for cash-out refinance based on appraised value.<\/li>\n<li><strong>No income docs:<\/strong> No W-2, tax returns, or DTI calculation. Property income only.<\/li>\n<li><strong>No property limit:<\/strong> Unlike conventional (capped at 4-10), DSCR has no limit on number of financed properties.<\/li>\n<\/ul>\n<p>For a full comparison of all financing options, see our <a href=\"\/blog\/best-loans-investment-property\/\">best loans for investment property guide<\/a>. Check LTV impact on rate with the <a href=\"\/ltv-calculator\">LTV calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_Ways_to_Improve_Your_SC_DSCR\"><\/span>5 Ways to Improve Your SC DSCR<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Increase_Down_Payment_to_30\"><\/span>1. Increase Down Payment to 30%<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Going from 25% to 30% down reduces your loan amount by ~7%, which drops monthly P&#038;I by $90-$120 on a typical SC property. This improves DSCR by 0.06-0.10 points \u2014 often enough to cross a tier threshold. Bonus: the 75% LTV tier gets you 0.25% better rate, further reducing PITIA.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Buy_Inland_Not_Coastal\"><\/span>2. Buy Inland, Not Coastal<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The insurance savings alone ($1,200-$2,300\/year) improve DSCR by 0.07-0.12 points. Columbia and Spartanburg consistently produce the strongest <strong>South Carolina DSCR loan<\/strong> ratios because of low insurance plus affordable entry prices.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Find_Above-Market_Rent\"><\/span>3. Find Above-Market Rent<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A property that rents $100-$200 above area median improves DSCR by 0.05-0.10. Value-add properties with minor upgrades (new paint, updated fixtures, pet-friendly policy) often command $100-$150\/month rent premiums. Factor this into your analysis with the <a href=\"\/states\/south-carolina\/rental-property-calculator\">SC rental property calculator<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Shop_Rates_Aggressively\"><\/span>4. Shop Rates Aggressively<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A 0.25% rate difference on a $210,000 loan changes monthly P&#038;I by ~$35. That moves DSCR by 0.02-0.03 points. Get quotes from 3-5 DSCR lenders \u2014 the spread between best and worst is typically 0.375-0.75%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Consider_ADU_or_Multi-Unit\"><\/span>5. Consider ADU or Multi-Unit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Adding an accessory dwelling unit or buying a duplex instead of SFR can boost monthly rent by $600-$1,000 while only modestly increasing PITIA. A $285,000 Greenville duplex renting both units at $1,100 ($2,200 total) would show a DSCR of 1.23 at 25% down \u2014 dramatically better than the 0.86 DSCR on a single-unit.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"DSCR_vs_Conventional_for_SC_Investment_Property\"><\/span>DSCR vs Conventional for SC Investment Property<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Factor<\/th>\n<th>Conventional<\/th>\n<th>DSCR<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Rate<\/td>\n<td>6.50-7.50%<\/td>\n<td>7.00-9.50%<\/td>\n<\/tr>\n<tr>\n<td>Down payment<\/td>\n<td>20-25%<\/td>\n<td>15-25%<\/td>\n<\/tr>\n<tr>\n<td>Income docs<\/td>\n<td>W-2, tax returns, DTI<\/td>\n<td>None \u2014 property income only<\/td>\n<\/tr>\n<tr>\n<td>Property limit<\/td>\n<td>4-10<\/td>\n<td>Unlimited<\/td>\n<\/tr>\n<tr>\n<td>Best for<\/td>\n<td>W-2 earners, first 4 properties<\/td>\n<td>Self-employed, 5+ properties, scaling<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>Conventional saves 0.50-1.50% on rate but requires full income documentation. For SC investors scaling past 4-5 properties \u2014 or self-employed investors with complex tax returns \u2014 DSCR eliminates the documentation barrier. The rate premium is the cost of unlimited scalability. Full comparison in our <a href=\"\/blog\/dscr-vs-conventional-loan\/\">DSCR vs conventional guide<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"DSCR_Loan_Process_Timeline_in_South_Carolina\"><\/span>DSCR Loan Process Timeline in South Carolina<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>South Carolina DSCR loan<\/strong> process from application to closing typically takes 21-30 days. Here is the step-by-step timeline:<\/p>\n<ol>\n<li><strong>Days 1-2:<\/strong> Submit application with property address, estimated rent, and purchase price. No W-2s, tax returns, or pay stubs needed \u2014 just bank statements for reserves.<\/li>\n<li><strong>Days 2-5:<\/strong> Lender orders appraisal and rent survey. The appraiser determines both property value and market rent \u2014 the rent survey is critical because it sets the DSCR numerator.<\/li>\n<li><strong>Days 5-14:<\/strong> Underwriting reviews appraisal, rent survey, credit, and reserves. If the rent survey comes in lower than your assumed rent, DSCR drops and the lender may require more down payment or offer a higher rate.<\/li>\n<li><strong>Days 14-21:<\/strong> Conditional approval, title search (by SC attorney), insurance verification.<\/li>\n<li><strong>Days 21-30:<\/strong> Clear to close, attorney prepares documents, closing at attorney office.<\/li>\n<\/ol>\n<p>Key SC-specific note: the attorney requirement adds 1-2 days to the closing process but does not significantly delay the overall timeline. Most SC real estate attorneys handle DSCR closings routinely.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_Can_Delay_Your_SC_DSCR_Closing\"><\/span>What Can Delay Your SC DSCR Closing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Three common delays: (1) Appraisal comes in low \u2014 lender recalculates LTV and DSCR, may require more down payment. (2) Rent survey shows below-market rent \u2014 DSCR drops, may need rate adjustment. (3) Title issues found by SC attorney \u2014 liens, easements, or boundary disputes require resolution. Budget 35 days to be safe, even though 25 days is typical.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Closing_a_DSCR_Loan_in_South_Carolina\"><\/span>Closing a DSCR Loan in South Carolina<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Per <a href=\"https:\/\/www.scbar.org\/public\/find-a-lawyer\/\" target=\"_blank\" rel=\"noopener\">SC Bar Association requirements<\/a>, SC is an attorney-close state \u2014 your DSCR closing requires a licensed attorney ($800-$1,500). This does not significantly slow the process: most DSCR loans close in 21-30 days in SC, similar to other states. Budget closing costs of 2.5-4.0% using the <a href=\"\/states\/south-carolina\/closing-costs-calculator\">SC closing costs calculator<\/a>.<\/p>\n<p>State deed stamps (0.37% of purchase price) apply on purchase. On a $280,000 property: $1,036 in deed stamps. For BRRRR investors refinancing later, deed stamps do not apply on the refinance \u2014 only on the original purchase. This makes SC more BRRRR-friendly than states that charge transfer tax on refinances.<\/p>\n<p>Planning a BRRRR deal in South Carolina? Our <a href=\"\/blog\/brrrr-strategy-south-carolina\/\">SC BRRRR strategy guide<\/a> covers refinance math, worked examples, and the 5 mistakes that kill SC deals.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<details open>\n<summary><strong>What DSCR do lenders require in South Carolina?<\/strong><\/summary>\n<p>Most <strong>South Carolina DSCR loan<\/strong> lenders require 1.0 minimum for standard pricing. Some accept 0.75 with 30%+ down and rate premium. For best rates, target 1.25+ DSCR \u2014 achievable in Columbia and Spartanburg at 30% down with inland insurance rates. Charleston typically requires 35%+ down due to high insurance inflating PITIA.<\/p>\n<\/details>\n<details>\n<summary><strong>What are DSCR loan rates in South Carolina?<\/strong><\/summary>\n<p><strong>South Carolina DSCR loan<\/strong> rates range from 7.00% to 9.50% in mid-2026. At 75% LTV with 1.25+ DSCR and 720+ credit: 7.25-7.50%. At 80% LTV with sub-1.0 DSCR: 9.00-9.50%. Rates are nationally competitive \u2014 SC does not have a state-specific premium.<\/p>\n<\/details>\n<details>\n<summary><strong>Which SC market is easiest for DSCR qualification?<\/strong><\/summary>\n<p>Columbia (DSCR 0.94 at 25% down, 1.05 at 30%) and Spartanburg (0.92 \/ 1.03) qualify easiest thanks to low prices and affordable insurance. Greenville is borderline. Charleston and Myrtle Beach are hardest due to high prices and coastal insurance \u2014 most deals need 30-35% down.<\/p>\n<\/details>\n<details>\n<summary><strong>How does SC property tax affect DSCR?<\/strong><\/summary>\n<p>SC taxes investment property at 6% assessment (vs 4% owner-occupied). On $280,000: $2,408\/year investment vs $1,600 owner-occupied. The $808 difference adds $67\/month to PITIA, dropping DSCR by ~0.04. Always use the 6% rate \u2014 never the seller&#8217;s current bill which reflects the 4% owner-occupied rate.<\/p>\n<\/details>\n<details>\n<summary><strong>Can I get a DSCR loan for a Charleston property?<\/strong><\/summary>\n<p>Yes, but it is harder. Charleston&#8217;s $420,000 median price and $3,200\/year coastal insurance produce a DSCR of ~0.75 at 25% down \u2014 the minimum most lenders accept. You need 30-35% down ($126,000-$147,000) or above-market rent to reach 1.0. Consider North Charleston or Summerville suburbs where prices are $100-150K lower with similar rents.<\/p>\n<\/details>\n<h2><span class=\"ez-toc-section\" id=\"Run_Your_SC_DSCR_Before_You_Apply\"><\/span>Run Your SC DSCR Before You Apply<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>South Carolina DSCR loan<\/strong> market favors informed investors. Know your exact DSCR before approaching a lender: open the <a href=\"\/states\/south-carolina\/dscr-calculator\">SC DSCR calculator<\/a>, enter your property details with the correct 6% tax assessment and real insurance quotes, and see where you land. If you are below 1.0, use the five strategies above to improve \u2014 or look at a different market. Columbia and Spartanburg are the easiest SC markets for DSCR qualification. Charleston requires significantly more capital but rewards investors with 5-6% annual appreciation.<\/p>\n<p><p>The South Carolina DSCR loan landscape rewards investors who understand the state-specific variables. The 6% investment tax assessment, coastal insurance premiums, and attorney closing requirement are not deal-breakers \u2014 they are inputs that change your numbers. Investors who account for these factors upfront negotiate better purchase prices, choose better markets, and close faster because their applications reflect reality rather than optimistic assumptions. The best SC DSCR deals are in Columbia and Spartanburg where low prices, affordable insurance, and stable government\/university rental demand create the strongest qualification profiles in the state.<\/p>\n<p>Compare your total financing options with the <a href=\"\/mortgage-calculator-investment\">investment property mortgage calculator<\/a> and budget your full capital requirement including reserves with the <a href=\"\/blog\/rental-property-cash-reserves-guide\/\">cash reserves guide<\/a>.<\/p>\n<p>For investors building a South Carolina portfolio, DSCR loans are the primary scaling tool after your first 4-5 conventional purchases. Each property qualifies independently on its own rental income \u2014 no cumulative DTI concerns, no W-2 documentation, no limit on property count. The rate premium over conventional (0.50-1.50%) is the cost of unlimited scalability. For most SC investors scaling past property #5, that premium pays for itself in time saved and deals closed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I have closed three DSCR loans on South Carolina properties \u2014 two in Greenville and one in Columbia. Each deal qualified differently despite using the same lender and same credit&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1561,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-1517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guides"],"_links":{"self":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/comments?post=1517"}],"version-history":[{"count":4,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1517\/revisions"}],"predecessor-version":[{"id":1579,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1517\/revisions\/1579"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media\/1561"}],"wp:attachment":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media?parent=1517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/categories?post=1517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/tags?post=1517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}