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Hard money loans in Charleston, SC
Loans for rentals, renovations and new homes on the peninsula, in West Ashley, on James and Johns Islands and in Daniel Island.
The Charleston market for investors
Charleston is the largest housing market on the South Carolina coast, and its demand comes from several directions at once: tourism, the Port of Charleston, the Medical University of South Carolina, the College of Charleston, Joint Base Charleston and the manufacturers in the region. That mix keeps long-term rental demand steady across the city.
The historic peninsula is tightly regulated and expensive, so much investor activity has moved to the neighborhoods around it, where older houses are renovated and new ones are built on infill lots. Long-term rentals are the mainstay, because the city’s short-term rental rules are among the strictest in the state.
Areas investors ask about
- The peninsula: historic single houses and renovations under the Board of Architectural Review
- West Ashley: mid-century ranches and bungalows suited to flips and long-term rentals
- James Island and Johns Island: older houses to renovate on James Island, newer subdivisions and lots on Johns Island
- Daniel Island: a planned community with higher prices and association rules
- Near MUSC and the hospitals: furnished rentals leased by the month to medical staff
Plan for these on a Charleston deal
- The City of Charleston ties residential short-term rental permits to owner occupancy, with investor-owned rentals limited to a small commercial overlay. Underwrite on long-term or mid-term rent unless you have confirmed otherwise.
- On the peninsula and in other historic districts, the Board of Architectural Review approves exterior work, demolitions and new buildings. Build that into your schedule.
- Check the flood zone and get a flood insurance quote before you make an offer. Where coverage is required, the premium is part of the payment. Low-lying parts of the peninsula and the suburbs flood in heavy rain and high tides.
- Older houses commonly need structural, moisture and termite repairs. Order the CL-100 wood infestation report early.
- Rentals are taxed at South Carolina’s 6% assessment ratio, not the 4% rate for an owner’s primary residence. Use the rental figure when you calculate the DSCR.
Loans available in Charleston
| Program | Use it for | Top leverage |
|---|---|---|
| DSCR rental loans | Purchase or refinance of long-term rentals, mid-term rentals, condos and permitted vacation rentals | 85% loan-to-value to buy, 80% on a cash-out refinance |
| Ground-up construction loans | Building a home or rental from the ground up, with the lot included | 90% of cost for experienced builders, up to 70 to 75% of the finished value |
| Fix and flip loans | Purchase plus renovation of a property you intend to sell | 90% of the purchase price and 100% of the rehab, up to 70 to 75% of after-repair value |
| Portfolio and commercial loans | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal |
Charleston hard money loans: common questions
Yes. Charleston is our focus market. We finance rentals at up to 85% loan-to-value, ground-up construction at up to 90% of cost for experienced builders, and fix and flips at up to 90% of purchase and 100% of rehab.
The City of Charleston restricts most residential short-term rentals to owner-occupied homes, and we lend on non-owner-occupied investment property. Investor rentals in the city are therefore normally underwritten on long-term or mid-term rent.
Yes. A fix and flip loan can fund up to 90% of the purchase and 100% of the rehab. Allow for Board of Architectural Review approval in your schedule.
Rental and DSCR loans take about 30 days, appraisal included. Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready.
Looking at a property in Charleston?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.