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Hard money loans in Isle of Palms, SC
Financing for vacation rentals, beach houses and resort condos on the barrier island north of Charleston.
The Isle of Palms market for investors
Isle of Palms is a barrier island across the Intracoastal Waterway from Mount Pleasant, with a long beach, the Wild Dunes resort and a large vacation rental market. Many houses and condos here are bought as rentals.
Next door, Sullivan’s Island has much tighter rental rules, so investors shopping the area should confirm which island and which rules apply before they make an offer.
What investors look at
- Oceanfront and near-beach houses: the strongest weekly and nightly rates
- Wild Dunes: resort condos and houses with their own association rules and amenities
- Interior and marsh-side streets: lower prices and long-term rental potential
Plan for these on a Isle of Palms deal
- Short-term rentals on Isle of Palms need a city rental business license and must follow the city’s occupancy and parking rules. Confirm a property’s license and any zoning limits before you buy.
- Rules on Sullivan’s Island are much stricter than on Isle of Palms. Do not assume they are the same.
- Barrier island property carries high flood and wind insurance costs. Get full quotes before you make an offer.
- 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 Isle of Palms
| 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 |
Isle of Palms hard money loans: common questions
Yes. Where a property is licensed to rent by the night, we use 12 months of rental history or AirDNA projections counted at about 70 to 80%, at up to 85% loan-to-value on a purchase.
Yes, including condos that do not meet conventional (warrantable) guidelines, usually at slightly lower leverage.
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 Isle of Palms?
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.