Home / Investment property loans
Investment property loans in Charleston, SC
Financing for non-owner-occupied real estate: long-term and mid-term rentals, condos, permitted vacation rentals, new builds and flips. Investment property is the only kind of lending we do.
Non-owner-occupied loan terms
| Rental purchase | up to 85% LTV |
| Rental cash-out | up to 80% LTV |
| Ground-up construction | up to 90% of cost |
| Fix and flip | 90% purchase, 100% rehab |
| Credit scores from | 600 |
| Loan amounts | $75K to $10M+ |
Top leverage depends on credit, track record and property type. We do not finance a home you will live in.
What a non-owner-occupied loan is
A non-owner-occupied property is one the borrower does not live in: a house leased by the year, a furnished rental leased by the month, a vacation rental where the rules allow it, a property bought to renovate and sell, or a lot where a home will be built. Lenders treat these as business-purpose loans, and the rules differ from the mortgage on a primary residence.
Charleston Hard Money Loans lends only on non-owner-occupied property. We are the Charleston division of Optimus Capital Corp, a nationwide lender that works only with real estate investors, and the division is run by Andrew Shanti, who has worked in lending and real estate since 2005 as a principal, executive and investor.
How to choose a lender for a Charleston investment property
The right lender depends on what you plan to do with the property. Three kinds of lender finance investment real estate, and each one approves the loan on something different.
| Lender type | Approves the loan on | Fits best |
|---|---|---|
| Bank or conventional mortgage | Your tax returns, employment and debt-to-income ratio | Borrowers with strong documented income and only a few financed properties |
| DSCR lender | Whether the rent covers the payment | Long-term and mid-term rentals, self-employed investors, LLC borrowers and investors with many loans |
| Hard money or bridge lender | The deal: price, budget and finished value | Ground-up construction, flips, historic renovations and purchases that have to close quickly |
Questions to ask before you pick a lender
Charleston property has features that some lenders handle poorly. These questions sort out quickly who can close your deal.
- Which rent will you use? We use the lease or market rent for long-term rentals, rental history for furnished mid-term rentals, and nightly income only where the property is allowed to rent by the night.
- Do you understand the short-term rental rules? The City of Charleston allows residential short-term rentals only where the owner lives on the property, so an investor-owned house in the city is underwritten on long-term or mid-term rent. Some beach towns and resort communities allow investor-owned vacation rentals under their own licenses.
- How do flood and wind insurance affect the loan? Both count in the monthly payment used for the DSCR. Get quotes before you make an offer.
- Do you use the right tax figure? Rentals in South Carolina are assessed at 6%, not the 4% owner-occupied rate. We underwrite on the rental figure.
- Will you finance a historic renovation? Yes, with a fix and flip or mid-rehab loan, and we allow for Board of Architectural Review timing.
- Will you check my personal income? We do not. There are no tax returns and no employment or debt-to-income review.
- Can I close in an LLC, and from out of state? Yes. We lend to LLCs and to out-of-state owners, and to foreign nationals on rental loans.
- How fast can you close? Rental loans take about 30 days, appraisal included. Fix and flip loans average up to 21 days and can close in about 7 days once title and insurance are ready.
What we finance in Charleston
- DSCR rental loans for houses, duplexes, condos and permitted vacation rentals: up to 85% loan-to-value to buy and 80% on a cash-out refinance, fixed for 5 to 30 years.
- Ground-up construction loans: up to 90% of cost for experienced builders, with the lot included.
- Fix and flip loans: up to 90% of the purchase price and 100% of the rehab at a 720+ credit score.
- Mid-rehab, portfolio and commercial loans for projects that need capital to finish, groups of rentals, and multifamily or hospitality property.
For neighborhood notes and local rules, see hard money loans in Charleston.
Investment property loans: common questions
It depends on the deal. For a rental you will hold, look for a DSCR lender that qualifies the property on its rent, understands Charleston’s short-term rental rules and counts flood insurance correctly. For a new build, a flip or a historic renovation, look for a hard money lender that funds the work and can close quickly. Charleston Hard Money Loans does both and lends only on non-owner-occupied property. It is run by Andrew Shanti, who has worked in lending and real estate since 2005.
It is a loan on a property the borrower will not live in, such as a rental, a flip or a new build for sale. It is a business-purpose loan, approved on the property and the deal, and it is not reported on personal credit like a conventional mortgage.
Yes. A DSCR rental loan is approved on whether the rent covers the payment, and a construction or fix and flip loan on the deal. We do not verify income or employment.
As little as 15% with strong credit, since we lend up to 85% loan-to-value on a rental purchase. At a 600 credit score the limit is 70%, so plan on 30%.
No. We lend on investment property only, and the property cannot be a home you will live in. For a primary residence, talk to a conventional mortgage broker.
Yes, where the property is allowed to rent by the night. In the City of Charleston that generally requires the owner to live on the property, so most investor rentals in the city are qualified on long-term or mid-term rent.
Loan programs at a glance
| 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 |
Buying an investment 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.