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Hard money loans in Folly Beach, SC
Loans for beach houses and rentals on Charleston’s closest beach, with careful attention to the rental license.
The Folly Beach market for investors
Folly Beach is the closest beach to downtown Charleston and one of the region’s best-known vacation spots. Beach houses here can earn strong rental income, but the town limits how many investor-owned short-term rentals it licenses.
That makes the rental license, not just the house, central to the value of an investor property. Buyers and lenders both need to know whether a property holds a license and whether it transfers.
What investors look at
- Oceanfront and second-row houses: the highest nightly rates and the highest insurance costs
- Houses toward the marsh and river side: lower prices, and long-term rental potential
- Condos near Center Street: walkable to the pier and restaurants
Plan for these on a Folly Beach deal
- Folly Beach caps investor short-term rental licenses. A 2026 court ruling on the cap is under appeal, and the city paused most new investor licenses while the appeal proceeds. Confirm a property’s license status with the city in writing before you rely on nightly income.
- Without a license, underwrite the property on long-term rent.
- Oceanfront property carries high flood and wind insurance costs, and storms and erosion matter. Get full insurance quotes 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 Folly Beach
| 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 |
Folly Beach hard money loans: common questions
Yes, where the property holds or can obtain an investor rental license from the city. We use 12 months of rental history or AirDNA projections counted at about 70 to 80%. Without a license, we underwrite on long-term rent.
Yes. A property’s ability to rent by the night depends on its license, so confirm the license status with the city before you buy and before we count nightly income.
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 Folly Beach?
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.