Hard money and DSCR loans in Charleston: your questions answered

It is a mortgage on an investment property that is funded by private institutional investors, not a bank. The decision is based on the property and the deal: whether its rent covers the payment, or its value after renovation or construction. Your job history and debt-to-income ratio are not reviewed.

Charleston Hard Money Loans is the Charleston division of Optimus Capital Corp, a nationwide hard money lender that works only with real estate investors. It is run by Andrew Shanti, Senior Vice President, who has worked in lending and real estate since 2005.

Our focus is the Charleston region: Charleston, North Charleston, Mount Pleasant, James Island, Summerville, Goose Creek, Folly Beach and Isle of Palms. We lend throughout South Carolina, and through Optimus Capital Corp we also finance property in other states.

DSCR loans for rental property, ground-up construction loans, fix and flip loans, mid-rehab and completion loans, rental portfolio loans, and commercial loans on multifamily, hospitality, office, industrial and retail property.

The answer depends on the property. For a rental, choose a DSCR lender that qualifies the property on its rent and understands Charleston’s short-term rental and flood insurance issues. For a new build, a flip or a historic renovation, choose a hard money lender that funds the work and closes quickly. Charleston Hard Money Loans offers both and lends only on non-owner-occupied property. See investment property loans in Charleston.

It means the borrower will not live in the property. Rentals, flips and new builds for sale are non-owner-occupied, and they are financed with business-purpose loans. Every loan we make is on non-owner-occupied property.

No. We lend on investment property only. The exception is commercial property occupied by the owner’s business. For a primary residence, a conventional NMLS-licensed mortgage broker is the right place to go.

As a rule, no, except on large commercial loans. The one cost before closing on most loans is the appraisal, which you pay to the appraisal company.

Programs begin at a 600 score. Rental loans are available at 600 with up to 70% loan-to-value. Fix and flip loans also start at 600 with reduced leverage, while the best terms, 90% of purchase and 100% of rehab, are for scores of 720 or higher. Why a score is low can affect what is offered.

No. We look at three things: enough cash to buy and carry the property, a property that can cover its payment now or once the work is finished, and a credit record that shows debts are paid on time.

No. These are business-purpose loans and are not reported on personal credit like a conventional mortgage.

As many as your deals support. There is no limit on the number of properties we will finance for one investor.

Yes. We will need the articles of organization, the IRS EIN letter, a signed operating agreement showing each member’s share and, if the LLC is over a year old, a certificate of good standing.

Yes. You can borrow in your own name or through an LLC.

A DSCR loan is approved on the debt service coverage ratio: the rent divided by the full monthly payment. We prefer 1.0 or higher. Strong borrowers can qualify below 1.0 with lower leverage, and a no-DSCR program exists at a higher rate.

In the City of Charleston, residential short-term rentals generally require the owner to live on the property, with investor-owned rentals limited to a small commercial overlay. Mount Pleasant, North Charleston, the beach towns and unincorporated areas each have their own rules. Check the specific address before you buy.

Yes, where the property holds or can obtain the town’s rental license. Folly Beach caps investor rental licenses and the cap has been in court, so confirm a property’s license status in writing before you rely on nightly income.

Yes. Furnished rentals leased for a month or more are qualified on their rental history.

Yes. Property tax is part of the monthly payment used in the DSCR. South Carolina assesses rentals at 6% of value instead of the 4% rate for an owner’s primary residence, so use the rental figure, not the current owner’s bill.

Yes. Where flood coverage is required, the premium is part of the monthly payment used in the DSCR. Get a quote and an elevation certificate early.

Yes, through our rental loan programs.

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.

In South Carolina a closing attorney handles the closing. Have yours chosen when you apply.

The minimum is $75,000. The maximum is more than $10 million.

From 6 months to 30 years. Fix and flip loans are 6 to 24 months with interest-only payments. Rental loans are fixed for 5 to 30 years.

Not on fix and flip loans. Rental loans come with a 3-year or 5-year prepayment penalty, the 5-year usually priced about 0.25 to 0.5% lower, or with no penalty at a higher rate.