Hard Money Loan South Carolina
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Last updated: May 19, 2025
At OfferMarket, our mission is to empower South Carolina investors to grow their wealth through real estate. To support your investing journey in the Palmetto State, we provide a comprehensive all-in-one platform:
💰 Private lending
☂️ Insurance rate shopping
🏚️ Off market properties
Our Hard Money Loan South Carolina program is crafted to offer fast, reliable, and competitive financing solutions for purchasing, refinancing, and improving 1-4 unit residential investment properties throughout South Carolina.
Whether your plan is to flip a Charleston bungalow for profit, or to acquire a rental in Greenville and refinance into a DSCR loan, we are excited to partner with you to fuel your success.
Let’s dive into the OfferMarket Hard Money Loan South Carolina Program!
What is a hard money loan?
A hard money loan is a short-term loan secured by a hard asset—in this case, South Carolina 1-4 unit residential real estate—used to buy, refinance, and rehab properties to either sell at a profit or hold as rental investments.
Often called “bridge loans” or “fix and flip loans” in South Carolina’s real estate community, these loans bridge funding gaps where traditional bank loans may not be ideal.
Hard money loan scenarios in South Carolina
South Carolina investors typically use hard money loans for:
Buying and renovating outdated homes in fast-growing markets like Charleston, Columbia, or Spartanburg to avoid tying up large amounts of personal capital
Refinancing cash purchases of off-market South Carolina properties with urgent close needs and completing the rehab phase
Refinancing existing loans on older properties in cities like Myrtle Beach, allowing time and capital to complete upgrades and then sell or refinance
Purchasing below-market-value properties in smaller towns or rural areas of South Carolina, intending to resell “as-is” for a quick profit
Refinancing cash purchases to unlock equity for new acquisitions within the state’s diverse real estate markets
Refinancing completed projects where you want additional time to sell or refinance into a longer-term loan
How it works in South Carolina
A hard money loan has two main components:
| Component | Description |
|---|---|
| Initial Advance | Funds allocated toward the purchase price, wired at closing to the title company in South Carolina. |
| Construction Holdback | Funds reserved for rehab costs, paid out to you based on verified progress. |
South Carolina investors often combine these to maximize leverage and minimize out-of-pocket rehab costs, but can also choose only one depending on their project strategy.
Your exit strategy could be to flip for profit in markets like Charleston or to rent and refinance into a DSCR loan for long-term holdings in areas such as Greenville or Columbia. Market conditions in South Carolina often encourage flexible exit plans.
Exit Strategy Examples:
You start with the BRRRR method in Greenville but switch to a flip when local rental demand softens.
You plan to flip in Charleston but hold as a rental during a cooling market, refinancing later.
Who uses hard money loans in South Carolina?
Fix and Flip Investors targeting dynamic markets like Charleston, Columbia, and Myrtle Beach
Rental Property Investors leveraging the BRRRR method to grow rental portfolios across South Carolina’s diverse cities and suburbs
Many South Carolina investors combine strategies to optimize returns based on evolving market trends.
Hard Money Loan Program Guidelines for South Carolina
| Criteria | Guideline |
|---|---|
| Loan amount (minimum) | $25,000 |
| Loan amount (maximum) | $2,000,000 |
| ARV (minimum) | $100,000 |
| Experience | Not required |
| Credit score (minimum) | 680 |
| Borrowing entity | LLC or Corporation |
| Initial advance | Up to 90% |
| Construction holdback | Up to 100% |
| LTARV (maximum) | 75% |
| Interest rate | Get instant quote |
| Origination fee | 1.5 to 2 points |
| Term | 12 to 24 months |
| Points out | None |
| Prepayment penalty | None |
| Structure | Interest-only with balloon payment |
| Recourse | Full (51% of borrowing entity must guarantee) |
| Exit strategy: Sale | Minimum 30% ROI |
| Exit strategy: Refinance | Minimum 1.1 DSCR after repairs |
| Valuation | Appraisal report or In-house valuation |
| SqFt (minimum) | Single family: 700+ 2-4 unit: 500+ per unit Condo: 500+ |
| Acreage (maximum) | 5 |
| Interest accrual | Under $100,000 loan: full boat $100,000+ loan: as disbursed |
| Advanced draws | Lender discretion |
| Down payment (minimum) | $10,000 |
Project Eligibility in South Carolina
Our goal is to help you build wealth through South Carolina real estate while managing risk. With less than 0.5% default rates across our loans, we pride ourselves on supporting your success statewide—from historic Charleston districts to up-and-coming Columbia neighborhoods.
Low experience borrowers taking on high-risk rehabs in South Carolina should proceed cautiously due to market and rehab challenges, especially in rural or transitional zones.
We partner as your capital provider and advisor, focusing on risk management tailored for South Carolina’s unique real estate dynamics.
Initial Advance and Experience Tiers for South Carolina Investors
Initial advances depend on your experience and deal specifics, including your track record with South Carolina properties and credit profile.
Experience tiers:
| Tier | Verifiable Experience |
|---|---|
| 1 | 0 |
| 2 | 1 to 2 |
| 3 | 3 to 4 |
| 4 | 5 to 9 |
| 5 | 10+ |
Initial advance by tier
| Tier | Initial Advance (% of Purchase Price) |
|---|---|
| 1 | 80%* |
| 2 | 85% |
| 3 | 85% |
| 4 | 90% |
| 5 | 90% |
(*) 85% available by exception for top credit/liquidity borrowers in South Carolina.
Adjustments are applied based on credit, rehab scope, and professional licenses recognized in South Carolina.
Rehab Scope Classification in South Carolina
| Rehab Scope | Definition |
|---|---|
| Light | Rehab budget under 25% of purchase price |
| Moderate | Rehab budget between 25% and 49.99% of purchase price |
| Heavy | Rehab budget between 50% and 99.99% of purchase price |
| Extensive | Rehab budget 100%+ of purchase price, including additions or expansions |
Eligibility for rehab scope is matched with your experience tier to promote safe lending across South Carolina’s markets.
LTARV Limits in South Carolina
Your maximum loan-to-after-repair value (LTARV) is determined by your experience level and the extent of the rehab work planned. This ensures responsible lending tailored to South Carolina’s diverse real estate markets, from Charleston’s historic districts to Columbia’s growing suburbs.
| Tier | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Experience | 0 | 1-2 | 3-4 | 5-9 | 10+ |
| Light Rehab | 70% | 70% | 75% | 75% | 75% |
| Moderate Rehab | Ineligible | 70% | 75% | 75% | 75% |
| Heavy Rehab | Ineligible | 70% | 75% | 75% | 75% |
| Extensive Rehab | Ineligible | Ineligible | 70% | 70% | 70% |
LTFC Limits in South Carolina
The Loan-to-Full-Cost (LTFC) ratio applies to extensive rehab projects—those where the rehab budget exceeds the purchase price. In South Carolina, this ensures borrowers maintain sufficient equity when tackling larger or more complex renovations.
| Tier | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Experience | 0 | 1-2 | 3-4 | 5-9 | 10+ |
| Light Rehab | N/A | N/A | N/A | N/A | N/A |
| Moderate Rehab | Ineligible | N/A | N/A | N/A | N/A |
| Heavy Rehab | Ineligible | N/A | N/A | N/A | N/A |
| Extensive Rehab | Ineligible | Ineligible | 85% | 90% | 90% |
Example: No Experience — South Carolina Market
Purchase price: $100,000
Tier: 1 (0 verifiable rehab projects)
Credit score: 695
Rehab budget: $24,000
ARV: $150,000
Initial advance: $75,000 (75%)
Construction holdback: $24,000
Total loan amount: $99,000
LTARV: 66%
LTFC: 79.8%
Interest accrual: Full boat
Example: No Experience, Excellent Credit — South Carolina
Purchase price: $100,000
Tier: 1 (0 verifiable rehab projects)
Credit score: 750
Rehab budget: $24,000
ARV: $150,000
Initial advance: $80,000 (80%)
Construction holdback: $24,000
Total loan amount: $104,000
LTARV: 69.33%
LTFC: 83.9%
Interest accrual: As disbursed
Example: Experienced Investor — South Carolina
Purchase price: $100,000
Tier: 4 (5 verifiable rehab projects)
Credit score: 750
Rehab budget: $20,000
ARV: $150,000
Initial advance: $90,000 (90%)
Construction holdback: $20,000
Total loan amount: $110,000
LTARV: 73.33%
LTFC: 91.67%
Interest accrual: As disbursed
Refinance Using As-Is Value Instead of Cost Basis in South Carolina
For South Carolina properties that have appreciated beyond your purchase price plus sunk costs, refinancing based on the As-Is value allows you to leverage increased equity while completing renovations.
South Carolina Specific Requirements:
Property must be habitable, rated C4 condition or better by a licensed appraiser
Property must be seasoned for at least 3 years within South Carolina markets
No default interest, extension, or late fees on prior payoff statements
Minimum credit score of 680
Experience Tier of 3 or higher (minimum 4 similar rehab projects)
Strong local market support for the As-Is value, including recent comparable sales within the South Carolina region
Supportive use case such as tenant vacancy requiring renovation for resale or lease
Transactions Involving Wholesalers in South Carolina
South Carolina investors utilizing wholesalers should note:
Assignment fees or price run-ups up to 20% of the original purchase price between seller and wholesaler may be included in the initial advance basis
Properties listed on MLS may have restrictions on assignment fee financing
Full contract chain and wholesaler operating agreements are required
Finder’s or referral fees are not financed
Must be arm’s length transactions compliant with South Carolina real estate laws
Construction Holdback for South Carolina Properties
Construction holdbacks are disbursed via draw requests based on verified rehab progress, helping South Carolina investors control rehab budgets and timelines efficiently.
| Criteria | Guideline |
|---|---|
| Minimum draw amount | None |
| Maximum draw amount | 100% of remaining holdback |
| Minimum number of draws | 0 |
| Maximum number of draws | None |
| Materials delivered not installed | 50% (receipt required) |
| Draw inspection | App-based, self-serve |
| Draw turnaround | 0 to 2 business days |
| Draw fee | $270 |
| Wire fee | $30 |
Appraisal and In-House Valuation in South Carolina
For every OfferMarket hard money loan in South Carolina, a property valuation is required to ensure accurate underwriting based on local market conditions. Depending on your specific loan scenario and property location—whether in urban hubs like Charleston and Columbia or more rural areas in South Carolina—we will require either a full interior appraisal, an exterior appraisal, or an in-house valuation.
In-House Valuation Eligibility in South Carolina
| Criteria | Requirement |
|---|---|
| Property Type | Single family, Duplex, Triplex, Quadplex |
| Experience Tier | 4 or higher |
| Credit Score | 720+ |
| Rural Property | No |
| New Market | No |
| LTARV | Maximum 70% |
For qualified South Carolina investors meeting these criteria, we reserve the right to request a full interior or exterior appraisal depending on loan specifics.
Exterior Appraisal in South Carolina
Exterior appraisals are accepted in these cases:
REO sales
Foreclosure auctions
Sheriff’s sales
Online auctions
Bankruptcy sales
The exterior appraisal must be dated within 120 days of your loan closing in South Carolina. If it’s between 120 and 180 days old, recertification is required.
Interior Appraisal in South Carolina
When a full interior appraisal is necessary, the following forms apply based on South Carolina property types:
| Property Type | Appraisal Forms |
|---|---|
| Single Family | 1004 + 1007 ARV (including As-Is value, non-gridded) |
| 2-4 Unit Multifamily | 1025 + 216 ARV (including As-Is value, non-gridded) |
| Condo | 1073 + 1007 ARV (including As-Is value, non-gridded) |
OfferMarket typically orders these appraisals through approved appraisal management companies (AMCs) to ensure compliance with South Carolina lending regulations. You will be responsible for paying the appraisal invoice, which must be settled prior to loan approval.
Appraisal Transfer in South Carolina
If you have an appraisal not ordered by OfferMarket, it may be transferred for use if it meets these South Carolina-specific conditions:
Ordered through an approved AMC
Less than 180 days old at loan closing
Recertified if 120 to 179 days old
Transferring lender provides a signed transfer letter certifying compliance with Appraiser Independence Requirements (AIR)
Complete appraisal report in PDF and XML formats
Paid appraisal invoice
Scenario: Stabilized Hard Money Loan in South Carolina
If your South Carolina property has no deferred maintenance and receives an appraisal condition rating of C4 or better, we offer a “stabilized” hard money loan. This means funding up to 75% of the property’s As-Is value, ideal for properties ready to rent or sell without major renovations.
| Criteria | Guideline |
|---|---|
| LTV Maximum (Tier 1) | 70% |
| LTV Maximum (Tier 2) | 70% |
| LTV Maximum (Tier 3) | 75% |
| LTV Maximum (Tier 4) | 75% |
| LTV Maximum (Tier 5) | 75% |
| LTFC Maximum (Tier 1) | 80% |
| LTFC Maximum (Tier 2) | 80% |
| LTFC Maximum (Tier 3) | 90% |
| LTFC Maximum (Tier 4) | 90% |
| LTFC Maximum (Tier 5) | 90% |
| Appraisal Condition Rating | C1, C2, C3, or C4 |
| Loan Term Maximum | 12 months |
Key Loan Details for South Carolina Hard Money Loans
| Criteria | Details |
|---|---|
| Loan Amount | $25,000 to $2,000,000* |
| Units per Property | 1 – 4 |
| Eligible Property Types | Non-owner occupied 1-4 unit residential properties, including single-family homes, 2-4 unit multifamily, condominiums, townhomes, and planned unit developments found across South Carolina |
| Property Minimum Size | Single Family: ≥700 SQFT Condo and 2-4 Unit: ≥500 SQFT per unit |
| Max Acreage | 5 acres |
| Loan to Cost (LTC) | Up to 90% purchase, 100% rehab |
| Loan to ARV (LTARV) | Up to 75% |
| Down Payment | Minimum $10,000 for purchase prices under $100,000 |
| Loan Term | 12 months standard; 18-24 months available for specific South Carolina projects |
| Extensions | Up to 50% of original term (fees apply) |
| Points | 1.5 to 2 points ($2,000 minimum) |
| Prepayment Penalty | None |
| Occupancy | Non-owner occupied – business purpose only |
| Transaction Types | Arms-length purchase and refinance |
| Geographic Region | South Carolina and other approved states |
| Amortization | Interest-only with balloon payment at maturity |
| Interest Accrual | Loans under $100,000: interest charged on full loan amount (“Full Boat”) Loans $100,000 or more: interest charged on funds disbursed (“As Disbursed”) |
Extensions for South Carolina Hard Money Loans
Hard money loans are designed as short-term financing, typically 12 to 24 months. While most South Carolina borrowers repay well before maturity, extensions are available but should be avoided when possible due to extra fees, interest costs, and foreclosure risk if unpaid after extension.
To reduce the chance of needing an extension in South Carolina, avoid:
Hiring inexperienced contractors unfamiliar with South Carolina codes and permitting
Taking on overly ambitious rehab scopes relative to your experience and liquidity
Projects with slow local zoning or permitting processes
Scenarios where you do not have immediate property access, such as inherited tenants or eviction needs
Lack of a clear dual exit strategy for selling or refinancing
Extension Limits
| Initial Loan Term | Maximum Extension Allowed |
|---|---|
| 12 months | 6 months |
| 18 months | 9 months |
| 24 months | 12 months |
Extension Terms and Fees
| Extension Term | Fee (% of total loan amount) |
|---|---|
| 3 months (1st request) | 1% |
| 3 months (2nd request) | 1.5% |
| 6 months (1st request) | 2.5% |
Extension Prerequisites
To extend your loan in South Carolina, you must provide proof of an active builder’s risk insurance policy covering the entire extension period.
Ineligible Property Types for South Carolina Hard Money Loans
Certain property types are excluded from funding under this program in South Carolina due to risk factors or regulatory restrictions:
Mixed-use properties with 5 or more units
Multifamily properties with 5 or more units
Condotels and cooperative housing (co-ops)
Mobile or manufactured homes
Commercial properties such as retail, office, or industrial buildings
Cabins or log homes commonly found in South Carolina’s mountainous regions
Properties with active oil or gas leases
Operating farms, ranches, or orchards typical in rural South Carolina
Vacation or seasonal rental properties, including beach homes in Myrtle Beach or Hilton Head
Unique, exotic, or luxury homes outside standard residential classifications
Properties accessed only by unpaved or dirt roads, often in rural areas
Exception Scenarios in South Carolina
Some South Carolina-specific exceptions are considered under special circumstances:
Guarantor credit scores between 660 and 679 may be accepted on an exception basis
Leasehold (ground rent) properties within certain South Carolina municipalities
Single family homes between 500 and 699 square feet
2-4 unit properties with one or more units between 400 and 499 square feet
Initial advance based on As-Is value exceeding cost basis
Non-arms length transactions, with appropriate documentation and review
Financed interest payments to help preserve liquidity
Borrower and Guarantor Requirements in South Carolina
| Item | Requirements / Eligibility |
|---|---|
| Borrowing Entities | LLC or Corporation; nonprofits are not eligible |
| Eligible Borrowers | U.S. Citizens, U.S. Permanent Residents, qualified Foreign Nationals |
| Foreign Nationals | Valid passport and U.S. visa (excluding travel/student visas unless under Visa Waiver Program) |
| Credit Requirements | Minimum 680 FICO (exceptions for 660-679) |
| Credit Report | Tri-merge credit report no older than 120 days |
| Liquidity Requirements | Minimum cash to close plus 25% of rehab budget in liquid assets |
| Eligible Liquid Assets | Bank accounts, brokerage accounts, retirement accounts (50% haircut) |
| Verification | Two most recent statements for each account, no seasoning required |
| Guaranty Structure | Purchase: at least 51% of borrowing entity must guarantee Cash out refinance: 100% guarantee required |
| Full Recourse Required | Yes |
| Guarantor Net Worth | Must be at least 50% of loan amount |
Credit and Background Items for South Carolina Borrowers
Middle credit score used if three scores available, lowest if two
Interest reserves required if fewer than five tradelines or no mortgage tradelines
Bankruptcy and foreclosure must be at least four years old for eligibility
Recent late payments require a letter of explanation (LOE) and review
Past due balances on mortgages or other debts must be paid before funding
Involuntary liens and judgments must be cleared prior to funding
Pending lawsuits reviewed case-by-case; criminal or financial crimes disqualify applicants
Repeat offenses require LOE and underwriting discretion
Interest Reserves for South Carolina Hard Money Loans
Interest reserves are funds collected at closing and held to cover interest payments during the loan term, reducing your cash flow burden.
| Interest Reserve | Scenario |
|---|---|
| 0 months | Lender discretion |
| 1 month | Guarantor FICO 700+ |
| 3 months | Guarantor FICO 660–699 |
| 6 months | Guarantor FICO 660–699 and/or credit/background concerns |
Financed Interest Payments in South Carolina
To protect your liquidity and credit score during rehabs, you may qualify to finance interest payments. Instead of monthly payments, accrued interest is added to your payoff balance.
Example:
Loan Amount: $100,000
Interest Rate: 12%
Months Held: 9
Accrued Interest: $9,000
Payoff Statement:
Principal Balance: $100,000
Interest: $9,000
Property Sourcing Guidelines in South Carolina
When sourcing properties across South Carolina—from coastal markets like Charleston and Myrtle Beach to upstate hubs like Greenville—certain documentation and agreements help streamline your loan process.
Key points for South Carolina investors:
New market transactions require a General Contractor (GC) agreement or a detailed Letter of Explanation if a GC is not needed
Properties with previous price escalations, wholesale deals, or non-arms length transactions require additional documentation and underwriting review
For condos, conversions, or projects involving significant renovation, architect or engineer letters or building permits may be necessary
Submissions must include purchase contracts, settlement statements, payoff letters (if applicable), investor track records, and borrowing entity formation documents
Insurance Guidelines for South Carolina Hard Money Loans
Insurance is crucial to protect your South Carolina investment property and yourself during the rehab and ownership period. Hard money loans typically require specialized insurance often referred to as Builder’s Risk or Fix and Flip insurance.
Required Coverages and Limits for South Carolina Properties
| Coverage Type | Limit | Required? |
|---|---|---|
| Dwelling | Replacement Cost or Loan Amount (no coinsurance) | Yes |
| Liability | $1,000,000 per occurrence / $2,000,000 aggregate | Yes |
| Builder’s Risk | Included | Yes |
| Flood | Greater of $250,000 or loan balance (if in FEMA Special Flood Hazard Area) | Only if applicable |
Insurance Policy Details for South Carolina
| Item | Requirement |
|---|---|
| AM Best Rating | A- VIII or greater |
| Policy Type | Special Form |
| Deductible | $1,000 to $5,000 |
| Lender’s Designation | Mortgagee and Additional Insured |
| Exclusions | No exclusions for windstorm, hail, or named storms |
| Cancellation Notice | 30-day notice to lender |
💡 Pro tip for South Carolina investors: As soon as you take ownership, install smoke detectors, deadbolt locks, and security cameras to meet insurance requirements and reduce claim denials.
Frequently Asked Questions About Hard Money Loans in South Carolina
What states does OfferMarket fund hard money loans in?
OfferMarket provides hard money loans across most U.S. states, including South Carolina and its major cities like Charleston, Columbia, and Greenville. Our service covers a broad range of states, but excludes a few due to licensing or regulatory reasons. Here’s the full list of states we currently serve:
Alabama, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming.
We also operate in select states like Arizona, Minnesota, Nevada, North Dakota, South Dakota, and Vermont where, due to NMLS licensing or local regulations, we primarily provide rate shopping services and connect you to licensed capital providers.
Can I have more than one hard money loan at a time?
Yes. It’s common for investors in South Carolina and nationwide to have multiple hard money loans active simultaneously. Our priority is helping you manage your risk and liquidity. If your current projects and financials support it, we are happy to facilitate additional loans to help you grow your real estate portfolio efficiently.
Are hard money loans commercial or residential loans?
Hard money loans are considered commercial loans because they are issued to business entities—such as LLCs or corporations—for investment purposes. Even though these loans fund residential properties, because they are for business use and issued to business entities, they carry a commercial classification.
What is the minimum loan amount?
The minimum loan amount across our hard money loan programs, including in South Carolina, is $25,000. This minimum allows investors of varying scales to access private lending for their real estate projects.
Which property types are eligible for funding?
We finance non-owner occupied 1-4 unit residential properties, including:
Single-family homes
Townhomes
Small multifamily buildings (2-4 units)
Warrantable condominiums
These property types are common in South Carolina’s urban, suburban, and some rural markets.
Properties not eligible include mixed-use or multifamily buildings with 5+ units, commercial properties, manufactured homes, farms, vacation or seasonal rentals, and unique or luxury properties.
How do you calculate Loan-to-Value (LTV)?
For hard money loans, LTV usually refers to Loan-to-After-Repair Value (LTARV). This is calculated as the total loan amount (initial advance plus construction holdback) divided by the estimated market value of the property after renovations.
The initial advance is based on the lower of the As-Is value or the purchase price in your contract. This conservative approach helps ensure you have sufficient equity and reduces lender risk.
What are the credit requirements?
A minimum FICO credit score of 680 is required for most loans. Borrowers with scores between 660 and 679 may be considered on an exception basis, depending on other factors such as experience and liquidity.
We review the credit scores of all members of the borrowing entity who will personally guarantee the loan.
Are experience requirements strict?
Experience is not mandatory, but having verifiable experience with similar rehab projects improves your borrowing power. Experienced investors benefit from higher leverage and better loan terms.
South Carolina investors with a strong track record on local projects—whether in Charleston’s historic districts or growing suburbs around Columbia—will find it easier to access favorable terms.
Does wholesaling count as experience?
No. Wholesaling does not count toward experience since it does not involve financial responsibility for rehabbing or completing the renovation of properties.
What documentation is required?
Documentation Required for Purchase Transactions in South Carolina
| Document | Description |
|---|---|
| Purchase Contract | Fully executed by buyer and seller |
| Credit Report | Soft tri-merge credit report for each guarantor |
| Background Report | Required for each guarantor |
| Track Record | Verifiable history of past projects for each guarantor |
| ID Verification | Government-issued ID (driver’s license, passport, Green Card) |
| Borrowing Entity Documents | Articles of Organization/Incorporation, Operating Agreement, Certificate of Good Standing, W-9 |
| Scope of Work | Detailed rehab budget and plan |
| Appraisal Report | Ordered by OfferMarket or transferred appraisals accepted |
| Bank Statements | Two most recent statements for each guarantor (personal/business) |
| Letter of Explanation (LOE) | Required if requested, e.g., for large deposits or credit issues |
Documentation Required for Refinance Transactions in South Carolina
| Document | Description |
|---|---|
| Settlement Statement | Fully executed by buyer and settlement agent |
| Credit Report | Soft tri-merge credit report for each guarantor |
| Background Report | Required for each guarantor |
| Track Record | Verifiable history of past projects for each guarantor |
| ID Verification | Government-issued ID (driver’s license, passport, Green Card) |
| Borrowing Entity Documents | Articles of Organization/Incorporation, Operating Agreement, Certificate of Good Standing, W-9 |
| Sunk Costs | Documentation of expenses already incurred on the property |
| Scope of Work | Detailed rehab budget and plan |
| Appraisal Report | Ordered by OfferMarket or transferred appraisals accepted |
| Bank Statements | Two most recent statements for each guarantor (personal/business) |
| Letter of Explanation (LOE) | Required if requested, e.g., for late payments or credit inquiries |
Are there special requirements for loans over $1 million?
| Criteria | Explanation |
|---|---|
| Experience | Minimum of 3 similar or higher-priced rehab projects recommended |
| Market Liquidity | At least 3 comparable sales (comps) within a 2-mile radius sold in the last 6 months |
| Credit Score | Minimum 680 with at least 5 trade lines and 24 months of credit history |
| Rural Designation | Properties with rural designation by CFPB, USDA, or appraiser are not eligible |
| Track Record | Verifiable history required for each member of the borrowing entity |
Glossary of Key Terms
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit—a secondary unit on the same property |
| Arms-length | A deal between unrelated, independent parties |
| Non-arms-length | A deal between parties with a close relationship |
| Initial Advance | Portion of loan used to fund the purchase |
| Construction Holdback | Portion of loan used for renovation; paid via draws |
| Interest Reserves | Prepaid interest held in escrow |
| LOE | Letter of Explanation—for clarifying irregularities in your file |
| LTC | Loan-to-Cost: loan vs. (purchase + rehab cost) |
| LTFC | Loan-to-Full-Cost: relevant for extensive rehab projects |
| LTV | Loan-to-As-Is-Value |
| LTARV | Loan-to-After-Repair-Value (ARV) |
| Full Boat Interest | Interest charged on total loan amount, regardless of draw schedule |
| As Disbursed Interest | Interest charged only on drawn funds |
| Lopsided Deal | When rehab budget exceeds purchase price or As Is value |
| GC Agreement | General Contractor agreement for project execution |
| DSCR | Debt Service Coverage Ratio: Rent ÷ Monthly debt obligations |
Ready to Fund Your South Carolina Real Estate Project?
At OfferMarket, we’re committed to helping South Carolina investors like you build wealth through smart, flexible hard money loans tailored to your needs. Whether you're flipping a Charleston bungalow or acquiring rental properties in Columbia, our experienced team is here to support your success every step of the way.
Get your instant hard money loan quote today and take the next step toward expanding your South Carolina real estate portfolio.
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